Russian metals giant Norilsk Nickel has released audited consolidated financial results for 2003, announcing a 47 per cent jump in earnings on the back of rising metal prices.

The world's leading nickel and palladium producer saw net attributable profit increase to $861 million from $584 million the previous year.

Meanwhile, Norilsk's revenues from metal sales improved 68 per cent over the year to $5.196 million.

The company said in a statement: "The main reasons for revenue growth were the increase of physical sales volumes and growth of the average annual realized prices of base metals, platinum (except for palladium) and gold, and the consolidation of Stillwater."

However, the results were slightly below market expectations, which caused the group's share price to dip.

Fyodor Tregubenko of Brunswick UBS told the Moscow Times that net profits were constrained by rising labour and materials costs.

He added: "Another factor that cut net profit was the current income tax, which was $592 million instead of some $500 million that we expected. And also the ruble strengthened to an average 30.7 per dollar in 2003 from 31.7 in 2002."

Norilsk explained that palladium sales increased by 242 per cent to $640 million, while platinum sales increased by 39 per cent to $537 million in 2003.