Statement of cash flows

Statement of cash flows (USD million)
Index 2017 2018 Change, %
Cash generated from operations before changes in working capital and income tax 4,103 6,339 54
Movements in working capital -1,670 941 n. a.
Income tax paid -670 -787 17
Net cash generated from operating activities 1,763 6,493 4x
Capital expenditure -2,002 -1,553 -22
Other investing activities 66 -9 n. a.
Net cash used in investing activities -1,936 -1,562 -19
Free cash flow -173 4,931 n. a.
Interest paid -642 -551 -14
Other financing activities -1,595 -3,753 2x
Net cash used in financing activities -2,237 -4,304 92
Effects of foreign exchange differences on balances of cash and cash equivalents -63 -91 44
Net increase/(decrease) in cash and cash equivalents -2,473 536 n. a.
Reconciliation of the net working capital changes between the balance sheet and cash flow statement (USD million)
Index 2017 2018
Change of the net working capital in the balance sheet -1,694 1,282
Foreign exchange differences 115 -277
Change in income tax payable -7 -5
Other changes including reserves -84 -59
Change of working capital per cash flow -1,670 941

In 2018, free cash flow increased to USD 4.9 billion primarily due to higher cash generated from operating activities and lower CAPEX.

In 2018, net cash generated from operating activities increased 4 -fold to USD 6.5 billion primarily driven by the increase in EBITDA and decrease of working capital in 2018 (versus increase in 2017).

Interest paid reduced by 14% to USD 551 million as a result of the optimization of debt portfolio.

In 2018, CAPEX decreased by 22% to USD 1.6 billion primarily due to the completion of Talnakh Concentrator modernization and the construction of Chita project as well as the projects related to the development of Pelyatkinskoye gas condensate field.

Capital investments breakdown by project (USD million)
Project 2017 2018 Change, %
Polar Division, including: 860 696 -19
Skalisty mine 216 218 1
Taymirsky mine 93 71 -24
Komsomolsky mine 18 44 2x
Oktyabrsky mine 69 40 -42
Talnakh Concentrator 89 29 -67
Sulphur project 37 36 -3
Other Polar Division projects 338 258 -24
Kola MMC 228 292 28
Chita (Bystrinsky) project 449 168 -63
Other production projects 453 386 -15
Other non-production assets 12 11 -8
Total 2,002 1,553 -22