Page 10 - FSUOGM Week 44 2021
P. 10
FSUOGM PERFORMANCE FSUOGM
Novatek reports strong Q3 result but fails
to fully capitalise on gas price spike
RUSSIA RUSSIA’S Novatek reported a year-on-year increased gas revenues by 5% q/q, average
surge in earnings in the third quarter, although JKM and TTF day-ahead prices were up over
The company's EBITDA the company did not capitalise that much on the 80%, the brokerage said.
almost doubled in the spike in global gas prices, as the bulk of its sales BCS Global Markets said the company
third quarter. are hedged to oil. modestly outperformed expectations, adding
The company’s EBITDA almost doubled to that its higher gas price was likely the result of
RUB181.8bn ($2.6bn), while net profit surged to higher oil prices rather than higher gas prices, as
RUB112.9bn from RUB13.2bn a year ago. Rev- most of its sales from the Yamal LNG plant was
enues grew to RUB269.9bn from RUB161.2bn. linked to the former.
Its gas production was up 3% y/y at 16bn cubic Novatek is currently seeking external financ-
metres, but down 6% quarter on quarter. ing for its next liquefaction project, Arctic
“We think the market was likely expecting LNG-2. Russia’s Sberbank, Gazprombank, Bank
a bigger impact from the sharp increase in GPB International, VEB.RF and Bank Otkritie
natural gas prices globally,” analysts at Sova Financial Corp. had agreed in April to provide a
Capital said in a research note, adding that €3.11bn ($3.76bn) credit line facility for the liq-
the company’s numbers were mostly in line uefaction project earlier this year, but they have
with their expectations. Whereas Novatek now increased this to €5.7bn.
Sibur grows revenues 67%
to $3bn in 3Q21
RUSSIA RUSSIAN petrochemical major Sibur posted
67% year-on-year and 12% quarter-on-quarter
BCS Global Markets revenue growth to $3bn in 3Q21 under IFRS,
expects Sibur to with EBITDA soaring 125% y/y to $1.5bn at a
maintain conservative margin of 48%.
credit metrics given In the reporting quarter of 3Q21, the mid-
potential synergy from stream segment (LPG, naphtha, natural gas, etc.)
the merger with TAIF. was the main contributor to quarterly growth in
EBITDA amid favourable pricing, BCS Global
Markets commented.
As followed by bne IntelliNews, Sibur has
closed a deal to take over 100% of its Tatarstan
based rival TAIF. The combined business will be
one of the five biggest producers of polyolefin
and rubber products in the world.
The company generated free cash flow (FCF)
of $1.2bn (+91% q/q), which was fully paid out as
dividends for the quarter. As part of the deal with
TAIF, Sibur also divested its stake in NIPIGAS, a
non-core asset, via the distributions of shares to "Setting aside the potential synergy from the
shareholders. deal, we expect SIBUR’s credit profile to remain
BCS Global Markets expects Sibur to main- strong with gross leverage below 2.0x in the short
tain conservative credit metrics given potential term, amid favourable market conditions. How-
synergy from the merger with TAIF and positive ever, the construction of the Amur Gas Chemi-
market environment, with the combined results cal Complex, coupled with generous dividends,
of Sibur and TAIF to be reflected in the full-year may lead to a moderate increase in leverage in
2021 IFRS report. the medium term," in BCS GM's analysts' view.
P10 www. NEWSBASE .com Week 44 03•November•2021
