Russian pgm giant Norilsk Nickel says it has enjoyed a surge in profits during the first half of 2005.

A total of 1.469 million ounces of palladium was sold and a further 327,000 ounces of platinum in the first half of this year – the first time sales figures have been supplied for pgms by Norilsk.

Metals sales helped push up profits to $974 million, a marked increased of 11.6 per cent in comparison with 2004.

Revenues from sales rose by five per cent to $3.44 billion, with all the refined metals the firm produces delivering an increased return bar palladium.

Palladium sales fell by 18 per cent during the first six months of 2005, standing at $407 million, largely as a result of this dip in its average selling price.

Meanwhile, platinum sales continued to rise, jumping by six per cent to $377 million largely as a result of the price increase of the precious metal.

Norilsk also detailed an increase of overheads, with utility costs rising as energy expenditure increased, standing at $50 million for the period.

The pgm sector in particular saw production costs increase, as toll refining costs increased to $32 million – up more than a third on last year.

The news follows from last week's announcement that the firm produced 1.483 million ounces of palladium and 355,000 ounces of platinum during the first half of this year.

Ÿ Adfero Ltd