Latest news with #NWF
Yahoo
6 days ago
- Business
- Yahoo
Has NWF Group plc (LON:NWF) Stock's Recent Performance Got Anything to Do With Its Financial Health?
NWF Group's (LON:NWF) stock is up by 3.1% over the past week. Given that stock prices are usually aligned with a company's financial performance in the long-term, we decided to investigate if the company's decent financials had a hand to play in the recent price move. In this article, we decided to focus on NWF Group's ROE. Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. Put another way, it reveals the company's success at turning shareholder investments into profits. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. The formula for return on equity is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for NWF Group is: 9.3% = UK£8.0m ÷ UK£86m (Based on the trailing twelve months to November 2024). The 'return' is the amount earned after tax over the last twelve months. Another way to think of that is that for every £1 worth of equity, the company was able to earn £0.09 in profit. Check out our latest analysis for NWF Group We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features. At first glance, NWF Group's ROE doesn't look very promising. Yet, a closer study shows that the company's ROE is similar to the industry average of 9.7%. Having said that, NWF Group has shown a modest net income growth of 10% over the past five years. Considering the moderately low ROE, it is quite possible that there might be some other aspects that are positively influencing the company's earnings growth. Such as - high earnings retention or an efficient management in place. As a next step, we compared NWF Group's net income growth with the industry and were disappointed to see that the company's growth is lower than the industry average growth of 28% in the same period. Earnings growth is an important metric to consider when valuing a stock. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Has the market priced in the future outlook for NWF? You can find out in our latest intrinsic value infographic research report. With a three-year median payout ratio of 36% (implying that the company retains 64% of its profits), it seems that NWF Group is reinvesting efficiently in a way that it sees respectable amount growth in its earnings and pays a dividend that's well covered. Moreover, NWF Group is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years. Upon studying the latest analysts' consensus data, we found that the company is expected to keep paying out approximately 40% of its profits over the next three years. Overall, we feel that NWF Group certainly does have some positive factors to consider. That is, a decent growth in earnings backed by a high rate of reinvestment. However, we do feel that that earnings growth could have been higher if the business were to improve on the low ROE rate. Especially given how the company is reinvesting a huge chunk of its profits. On studying current analyst estimates, we found that analysts expect the company to continue its recent growth streak. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
Has NWF Group plc (LON:NWF) Stock's Recent Performance Got Anything to Do With Its Financial Health?
NWF Group's (LON:NWF) stock is up by 3.1% over the past week. Given that stock prices are usually aligned with a company's financial performance in the long-term, we decided to investigate if the company's decent financials had a hand to play in the recent price move. In this article, we decided to focus on NWF Group's ROE. Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. Put another way, it reveals the company's success at turning shareholder investments into profits. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. The formula for return on equity is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for NWF Group is: 9.3% = UK£8.0m ÷ UK£86m (Based on the trailing twelve months to November 2024). The 'return' is the amount earned after tax over the last twelve months. Another way to think of that is that for every £1 worth of equity, the company was able to earn £0.09 in profit. Check out our latest analysis for NWF Group We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features. At first glance, NWF Group's ROE doesn't look very promising. Yet, a closer study shows that the company's ROE is similar to the industry average of 9.7%. Having said that, NWF Group has shown a modest net income growth of 10% over the past five years. Considering the moderately low ROE, it is quite possible that there might be some other aspects that are positively influencing the company's earnings growth. Such as - high earnings retention or an efficient management in place. As a next step, we compared NWF Group's net income growth with the industry and were disappointed to see that the company's growth is lower than the industry average growth of 28% in the same period. Earnings growth is an important metric to consider when valuing a stock. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Has the market priced in the future outlook for NWF? You can find out in our latest intrinsic value infographic research report. With a three-year median payout ratio of 36% (implying that the company retains 64% of its profits), it seems that NWF Group is reinvesting efficiently in a way that it sees respectable amount growth in its earnings and pays a dividend that's well covered. Moreover, NWF Group is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years. Upon studying the latest analysts' consensus data, we found that the company is expected to keep paying out approximately 40% of its profits over the next three years. Overall, we feel that NWF Group certainly does have some positive factors to consider. That is, a decent growth in earnings backed by a high rate of reinvestment. However, we do feel that that earnings growth could have been higher if the business were to improve on the low ROE rate. Especially given how the company is reinvesting a huge chunk of its profits. On studying current analyst estimates, we found that analysts expect the company to continue its recent growth streak. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-05-2025
- Business
- Yahoo
Cornish Metals Releases Unaudited Financial Statements and Management's Discussion and Analysis for the Three Months Ended 31 March 2025
VANCOUVER, British Columbia, May 15, 2025 (GLOBE NEWSWIRE) -- Cornish Metals Inc. (TSX-V/AIM: CUSN) ('Cornish Metals' or the 'Company'), a mineral exploration and development company focused on advancing its 100% owned and permitted South Crofty tin project in Cornwall, United Kingdom, is pleased to announce that it has released its unaudited financial statements and management, discussion and analysis ('MD&A') for the three months ended March 31, 2025. The reports are available under the Company's profile on SEDAR+ ( and on the Company's website ( Highlights for the three months ended March 31, 2025 and for the period ending May 14, 2025 (All figures expressed in Canadian dollars unless otherwise stated) Strategic investment and fundraise (the 'Fundraise') (news releases dated January 28-31, 2025): The Fundraise totalling £57.4 million announced on January 28-31, 2025 was anchored by the National Wealth Fund Limited ('NWF') and Vision Blue Resources Limited ('Vision Blue'), investing £28.6 million and £18.1 million, respectively, with a further £10.7 million from existing shareholders and new investors, including £1.4 million from a retail offer; The Fundraise is expected to provide financial runway through to the end of Q1 2026 and will enable the Company to further de-risk South Crofty and advance it towards a formal final investment decision; Senior management appointments (news release dated April 27, 2025): Strengthening of the project and operations teams at South Crofty with the appointments of Dave Howe as General Manager and Guillermo Alcaraz as Project Director; Mr. Howe has 35 years of open pit and hard rock underground mining (including narrow vein) operational and exploration experience, of which 24 years were in executive and senior management roles; Mr. Alcazar is a project executive with over two decades of global experience leading and overseeing a multimillion-dollar complex portfolio of mining, heavy industrial and infrastructure projects across diverse development stages; Purchase of 4.5 acres of land from Cornwall Council (news release dated April 1, 2025): The purchased land is immediately adjacent to existing surface land owned by Cornish Metals and provides direct access to the main road at Dudnance Lane from where a new entrance to the mine site is planned and where a new mine office, stores and workshop will be located. Mine dewatering and refurbishment of New Cook's Kitchen Shaft: Refurbishment of New Cook's Kitchen shaft ('NCK') is progressing and has reached approximately 290 metres below surface. The water level in NCK shaft is currently at approximately 300 metres below surface; Progress during the period under review has been slower than in prior periods reflecting the staged maintenance of the submersible pumps in preparation for the next phase of dewatering. Dewatering is currently advancing at a rate of over 15,000 m3 per day and this will increase to approximately 25,000 m3 per day once maintenance is completed. Don Turvey, CEO and Director of Cornish Metals, stated: 'We started the year on a strong note successfully completing the £57.4 million fundraise that was supported by existing and new shareholders, including Vision Blue and the UK's National Wealth Fund. This funding will enable the Company to maintain its strong momentum and further unlock South Crofty's potential by delivering important milestones expected in the coming year including advancing mine dewatering and shaft refurbishment, placing orders for long-lead items, the start of early project works and concluding the project finance process. We have also strengthened our project and operations teams at South Crofty with senior appointments to the roles of Project Director and General Manager who will be key to leading South Crofty through successful construction and to full production.' Financial highlights for the three months ended March 31, 2025 and March 31, 2024 (Expressed in Canadian dollars) Total operating expenses 3,189,723 2,759,198 Loss for the period 3,043,606 2,561,669 Net cash used in operating activities (2,190,616) (1,148,564) Net cash used in investing activities (6,602,900) (7,895,388) Net cash provided by (used in) financing activities 87,513,355 (85,646) Cash at end of the period 88,954,141 17,015,749 Operating expenses have risen reflecting increased professional fees associated with more corporate activity as well as an increase in corporate remuneration due to bonuses following completion of the Fundraise; Project related expenditure of $5.3 million relating to the advancement of South Crofty, primarily relating to NCK shaft re-access & refurbishment, preparation for the refurbishment of the pump station at 360 metres depth and ongoing project engineering studies; Dewatering costs of $1.5 million for power, reagents, sludge disposal and maintenance of the water treatment plant ('WTP'); Receipt of $87.5 million in net proceeds from the Fundraise after repayment of the debt facility with Vision Blue which was settled through a set-off with the Fundraise; and Cash increased by $78.7 million to $89.0 million at the period end due to the proceeds received from the Fundraise offset by ongoing development activities at South Crofty. Outlook As described above, the Company continues to advance and derisk South Crofty towards production. The Company's near-term objectives are as follows: Complete dewatering of South Crofty mine and refurbishment of NCK shaft; Advance detailed project engineering studies; Place orders for long lead items of plant and equipment; Commence early project works, including initial construction of the groundworks for the processing plant; and Arrange project financing for South Crofty. ABOUT CORNISH METALS Cornish Metals is a dual-listed mineral exploration and development company (AIM and TSX-V: CUSN) that is advancing the South Crofty tin project towards production. South Crofty: is a historical, high-grade, underground tin mine located in Cornwall, United Kingdom and benefits from existing mine infrastructure including multiple shafts that can be used for future operations; is permitted to commence underground mining (valid to 2071), construct a new processing facility and for all necessary site infrastructure; has a 2024 Preliminary Economic Assessment that validates the Project's potential (see news release dated April 30, 2024 and the Technical Report entitled 'South Crofty PEA'): US$201 million after-tax NPV8% and 29.8% IRR 3-year after-tax payback 4,700 tonnes average annual tin production in years two through six Life of mine all-in sustaining cost of US$13,660 /tonne of payable tin Total after-tax cash flow of US$626 million from start of production would be the only primary producer of tin in Europe or North America. Tin is a Critical Mineral as defined by the UK, American, and Canadian governments as it is used in almost all electronic devices and electrical infrastructure. Approximately two-thirds of the tin mined today comes from China, Myanmar and Indonesia; benefits from strong local community, regional and national government support with a growing team of skilled people, local to Cornwall, and could generate up to 320 direct jobs. The 2024 Preliminary Economic Assessment for South Crofty is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorised as Mineral Reserves. There is no certainty that the 2024 Preliminary Economic Assessment will be realised. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. TECHNICAL INFORMATION This news release has been reviewed and approved by Mr. Stephen Holley, BSc (Hons), ACSM, MSc, MSCM, CEng MIMMM, Feasibility Study Manager for Cornish Metals who is the designated Qualified Person as the term is defined in Canadian National Instrument 43-101 and the AIM Rules for Companies, and a Competent Person as defined under the JORC Code (2012). Mr. Holley consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears. ON BEHALF OF THE BOARD OF DIRECTORS 'Don Turvey'Don TurveyCEO and Director Engage with us directly at our investor hub. Sign up at: For additional information please contact: Cornish Metals Fawzi Hanano investors@ Irene Dorsman info@ Tel: +1 (604) 200 6664 SP Angel Corporate Finance LLP Richard Morrison Tel: +44 203 470 0470 (Nominated Adviser & Joint Broker) Charlie Bouverat Grant Barker Hannam & Partners Matthew Hasson cornish@ (Joint Broker) Andrew Chubb Tel: +44 207 907 8500 Jay Ashfield BlytheRay Tim Blythe cornishmetals@ (Financial PR) Megan Ray Tel: +44 207 138 3204 Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release may contain certain 'forward-looking information' and 'forward-looking statements' (collectively, 'forward-looking statements'). Forward-looking statements include predictions, projections, outlook, guidance, estimates and forecasts and other statements regarding future plans, the realisation, cost, timing and extent of mineral resource or mineral reserve estimates, estimation of commodity prices, currency exchange rate fluctuations, estimated future exploration expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, requirements for additional capital and the Company's ability to obtain financing when required and on terms acceptable to the Company, future or estimated mine life and other activities or achievements of Cornish Metals. Forward-looking statements are often, but not always, identified by the use of words such as 'seek', 'anticipate', 'believe', 'plan', 'estimate', 'forecast', 'expect', 'potential', 'project', 'target', 'schedule', 'budget' and 'intend' and statements that an event or result 'may', 'will', 'should', 'could', 'would' or 'might' occur or be achieved and other similar expressions and includes the negatives thereof. All statements other than statements of historical fact included in this news release, are forward-looking statements that involve various risks and uncertainties and there can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are subject to risks and uncertainties that may cause actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to receipt of regulatory approvals, risks related to general economic and market conditions; risks related to the availability of financing; the timing and content of upcoming work programmes; actual results of proposed exploration activities; possible variations in Mineral Resources or grade; projected dates to commence mining operations; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the mining industry; changes in national and local government regulation of mining operations, tax rules and regulations. The list is not exhaustive of the factors that may affect Cornish's forward-looking statements. Cornish Metals' forward-looking statements are based on the opinions and estimates of management and reflect their current expectations regarding future events and operating performance and speak only as of the date such statements are made. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ from those described in forward- looking statements, there may be other factors that cause such actions, events or results to differ materially from those anticipated. There can be no assurance that forward-looking statements will prove to be accurate and accordingly readers are cautioned not to place undue reliance on forward-looking statements. Cornish Metals does not assume any obligation to update forward-looking statements if circumstances or management's beliefs, expectations or opinions should change other than as required by applicable law. This news release contains certain terms or performance measures commonly used in the mining industry that are not defined under International Financial Reporting Standards ("IFRS"), including "all-in sustaining costs". Non-IFRS measures do not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar measures employed by other companies. The data presented is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS and should be read in conjunction with Cornish Metals' consolidated financial statements and Management Discussion and Analysis, available on its website and on SEDAR+ at information contained within this announcement is deemed by the Company to constitute inside information pursuant to Article 7 of EU Regulation 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 as amended. CONSOLIDATED CONDENSED INTERIM STATEMENTS OF FINANCIAL POSITION(Unaudited)(Expressed in Canadian dollars) March 31, 2025 December 31, 2024 ASSETS Current Cash $ 88,954,141 $ 9,589,029 Marketable securities 3,078,376 2,874,696 Receivables 2,862,514 2,697,326 Prepaid expenses 673,554 504,902 Deferred financing fees - 637,718 95,568,585 16,303,671 Deposits 112,576 64,341 Property, plant and equipment 27,143,529 27,132,244 Exploration and evaluation assets 90,750,183 79,961,014 $ 213,574,873 $ 123,461,270 LIABILITIES Current Accounts payable and accrued liabilities $ 5,735,330 $ 4,045,083 Deferred income - 150,000 Loan liability - 13,457,169 5,735,330 17,652,252 NSR liability 9,826,144 9,869,289 15,561,474 27,521,541 SHAREHOLDERS' EQUITY Capital stock 229,373,265 128,394,652 Capital contribution 2,007,665 2,007,665 Share-based payment reserve 1,604,784 1,353,933 Foreign currency translation reserve 11,528,569 7,640,757 Deficit (46,500,884 ) (43,457,278 ) 198,013,399 95,939,729 $ 213,574,873 $ 123,461,270 CONSOLIDATED CONDENSED INTERIM STATEMENTS OF LOSS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) (Expressed in Canadian dollars) Three months ended March 31, 2025 March 31, 2024 EXPENSES Travel and marketing $ 205,667 $ 214,138 Insurance 179,920 203,063 Office, miscellaneous and rent 91,226 56,505 Professional fees 541,343 275,093 Generative exploration costs - 1,191 Regulatory and filing fees 30,398 29,265 Share-based compensation 162,617 123,799 Salaries, directors' fees and benefits 1,978,552 1,856,144 Total operating expenses (3,189,723 ) (2,759,198 ) Interest income 133,582 265,666 Interest expense (486,337 ) - Foreign exchange gain (loss) 377,892 (18,900 ) Gain on receipt of non-refundable deposit 150,000 - Unrealized loss on marketable securities (29,020 ) (49,237 ) Loss for the period (3,043,606 ) (2,561,669 ) Foreign currency translation 3,887,812 1,413,937 Total comprehensive income (loss) for the period $ 844,206 $ (1,147,732 ) Basic and diluted loss per share $ (0.00 ) $ (0.00 ) Weighted average number of common shares outstanding 665,925,628 535,270,712 CONSOLIDATED CONDENSED INTERIM STATEMENTS OF CASH FLOWS (Unaudited) (Expressed in Canadian dollars) For the three months ended March 31, 2025 March 31, 2024 CASH FLOWS FROM OPERATING ACTIVITIES Loss for the period $ (3,043,606 ) $ (2,561,669 ) Items not involving cash: Share-based compensation 162,617 123,799 Interest expense 486,337 - Foreign exchange (gain) loss (377,892 ) 18,900 Gain on receipt of non-refundable deposit (150,000 ) - Unrealized loss on marketable securities 29,020 49,237 Changes in non-cash working capital items: (Increase) decrease in receivables (91,322 ) 19,706 Increase in prepaid expenses (214,282 ) (16,527 ) Increase in accounts payable and accrued liabilities 1,008,512 1,217,990 Net cash used in operating activities (2,190,616 ) (1,148,564 ) CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of property, plant and equipment (81,585 ) (2,369,406 ) Acquisition of exploration and evaluation assets (6,476,236 ) (5,525,982 ) Increase in deposits (45,079 ) - Net cash used in investing activities (6,602,900 ) (7,895,388 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from the Fundraise 91,566,076 - Share issue costs (4,052,721 ) - Increase in deferred financing fees - (85,646 ) Net cash provided by (used in) financing activities 87,513,355 (85,646 ) Change in cash during the period 78,719,839 (9,129,598 ) Cash, beginning of the period 9,589,029 25,791,552 Impact of foreign exchange on cash 645,273 353,795 Cash, end of the period $ 88,954,141 $ 17,015,749 Cash paid during the period for interest $ - $ - Cash paid during the period for income taxes $ - $ - CONSOLIDATED CONDENSED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY(Unaudited)(Expressed in Canadian dollars) Foreign Capital stock Share-based currency Number of Capital payment translation Shareholders' shares Amount contribution reserve reserve Deficit equity – total Balance at December 31, 2023 535,270,712 $ 128,394,652 $ 2,007,665 $ 711,690 $ 1,369,146 $ (42,391,158 ) $ 90,091,995 Foreign currency translation - - - - 1,413,937 - 1,413,937 Share-based compensation - - - 178,149 - - 178,149 Loss for the period - - - - - (2,561,669 ) (2,561,669 ) Balance at March 31, 2024 535,270,712 $ 128,394,652 $ 2,007,665 $ 889,839 $ 2,783,083 $ (44,952,827 ) $ 89,122,412 Balance at December 31, 2024 535,270,712 $ 128,394,652 $ 2,007,665 $ 1,353,933 $ 7,640,757 $ (43,457,278 ) $ 95,939,729 Share issuance pursuant toFundraise 717,143,367 105,361,387 - - - - 105,361,387 Share issue costs - (4,382,774 ) - - - - (4,382,774 ) Foreign currency translation - - - - 3,887,812 - 3,887,812 Share-based compensation - - - 250,851 - - 250,851 Loss for the period - - - - - (3,043,606 ) (3,043,606 ) Balance at March 31, 2025 1,252,414,079 $ 229,373,265 $ 2,007,665 $ 1,604,784 $ 11,528,569 $ (46,500,884 ) $ 198,013,399 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Qatar Tribune
07-05-2025
- Business
- Qatar Tribune
Russia plans to employ fiscal reserves to balance 2025 budget
Agencies The Russian government plans to use its fiscal reserves for 447 billion rubles ($5.51 billion), or about one-tenth of its liquid assets, to balance the budget in 2025 after a threefold increase in the deficit, according to the country's finance minister on Tuesday. The Finance Ministry raised the 2025 budget deficit estimate to 1.7% of gross domestic product (GDP) last week from 0.5% after reducing the energy revenues forecast by 24% due to expectations of a prolonged period of low oil prices. The move, taken as global oil prices hit their lowest level in four years, reversed the ministry's initial plan to replenish the reserve National Wealth Fund (NWF) this year and forced it to look for sources to cover the deficit instead. 'Overall for the year, based on forecast data from the Ministry of Economy, which we used as a basis for the federal budget adjustment, we expect to use 447 billion rubles from the National Wealth Fund (NWF),' Finance Minister Anton Siluanov told a news conference. The liquid assets of the NWF stood at 3.3 trillion rubles, or $39 billion, last month after dropping by about two-thirds since the start of the war in Ukraine in 2022. The fund is projected to receive over 1 trillion rubles in extra revenues from said the government was not planning any emergency measures such as raising taxes this year. Neither is the ministry planning to increase its borrowing plans. Siluanov earlier said defense spending will not be touched. 'This year, I hope we will manage without taking extraordinary measures during the budget execution process,' he said. Many economists, however, see such measures as inevitable in the coming years. Seeking ways to counter the oil price shock, Siluanov proposed to save more oil revenues by lowering the 'cutoff' price of oil, above which all energy revenues are set aside for a rainy day, in the next three-year draft budget. The initiative would have ensured at least a three-year coverage of budget spending if the oil price remains low for an extended period, but also implied a reduction in spending as the military operation in Ukraine continues. Siluanov's comments on Tuesday suggested the idea was shelved for the time being. With the current cutoff price at $60 per barrel, at the projected average price for Urals blend at $56 this year, no money can flow into the fund. 'In the projections for the next three-year budget, a change in the cutoff price will not be provided for,' he said. Russia is the world's second-largest oil exporter, with energy making up one-fifth of the budget's total revenues. U.S. President Donald Trump said on Tuesday that with lower oil prices, Russia is more eager to settle the Ukraine war. The strong ruble, which has rallied by about 40% against the U.S. dollar this year, mostly on expectations of a peaceful settlement in Ukraine in an unprecedented decoupling from the oil price, has added to the budget woes. The oil price calculated in rubles fell in early May to a two-year low below the 4,000 ruble per barrel mark, about 40% lower than planned in the budget, according to Reuters calculations. Siluanov said stalled imports, as domestic buyers of foreign goods struggle to secure loans at high domestic interest rates and face international payment problems caused by Western sanctions, were a key factor behind the rouble's strength.
Reuters
06-05-2025
- Business
- Reuters
Russia plans to tap fiscal reserves to balance 2025 budget, finance minister says
Summary Companies The move comes after threefold 2025 deficit increase Oil prices hit lowest level in four years Siluanov sees no extraordinary measures to balance budget in 2025 Rouble expected to weaken when interest rates decrease MOSCOW, May 6 (Reuters) - The Russian government plans to tap its fiscal reserves for 447 billion roubles ($5.51 billion), or about 1/10th of their liquid assets, to balance the budget in 2025 after a threefold increase in the deficit, the finance minister said on Tuesday. The finance ministry raised the 2025 budget deficit estimate to 1.7% of gross domestic product last week from 0.5% after reducing the energy revenues forecast by 24% due to expectations of a prolonged period of low oil prices. The move, taken as global oil prices hit their lowest level in four years, reversed the ministry's initial plan to replenish the reserve National Wealth Fund (NWF) this year and forced it to look for sources to cover the deficit instead. "Overall for the year, based on forecast data from the Ministry of Economy, which we used as a basis for the federal budget adjustment, we expect to use 447 billion roubles from the National Wealth Fund," minister Anton Siluanov told a news conference. The liquid assets of the NWF stood at 3.3 trillion roubles, or $39 billion, last month after dropping by about two-thirds since the start of the war in Ukraine in 2022. The fund is projected to receive over 1 trillion roubles in extra revenues from 2024. NO EMERGENCY MEASURES Siluanov said the government was not planning any emergency measures such as raising taxes this year. Neither is the ministry planning to increase its borrowing plans. Siluanov earlier said defence spending will not be touched. "This year, I hope we will manage without taking extraordinary measures during the budget execution process," he said. Many economists, however, see such measures as inevitable in the coming years. Seeking ways to counter the oil price shock, Siluanov proposed to save more oil revenues by lowering the "cut-off" price of oil, above which all energy revenues are set aside for a rainy day, in the next three-year draft budget. The initiative would have ensured at least a three-year coverage of budget spending if the oil price remains low for an extended period, but also implied a reduction in spending as the military operation in Ukraine continues. Siluanov's comments on Tuesday suggested the idea was shelved for the time being. With the current cut-off price at $60 per barrel, at the projected average price for Urals blend at $56 this year, no money can flow into the fund. "In the projections for the next three-year budget, a change in the cut-off price will not be provided for," he said. Russia is the world's second largest oil exporter with energy making up one fifth of the budget's total revenues. U.S. President Donald Trump said on Tuesday that with lower oil prices, Russia is more eager to settle the Ukraine war. CHEAP MONEY The strong rouble, which has rallied by about 40% against the U.S. dollar this year, mostly on expectations of a peaceful settlement in Ukraine in an unprecedented decoupling from the oil price, has added to the budget woes. The oil price calculated in roubles fell in early May to a two-year low below the 4,000 rouble per barrel mark, about 40% lower than planned in the budget, according to Reuters calculations. Siluanov said stalled imports, as domestic buyers of foreign goods struggle to secure loans at high domestic interest rates and face international payment problems caused by Western sanctions, were a key factor behind the rouble's strength. Sales of foreign currency, predominantly the Chinese yuan, from the National Wealth Fund, which resumed in April to cover the budget shortfall, have also supported the rouble in recent weeks. Siluanov said that eventual monetary policy easing will enable importers to take more loans and push the rouble lower. A weaker local currency generally helps to fill state coffers for exporting countries. "If the money becomes cheaper, it will affect the exchange rate," Siluanov said, pledging that there will be no changes to the foreign currency regulation, which includes mandatory sales of foreign currency by exporting companies. ($1 = 81.1455 roubles)
