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9.2.10 Utilities corporate news
Gazprom Energoholding CEO guides for relatively stable EBITDA
Fedorov indicated that GEH's net income in 2020 was above R42bn, EBITDA was close to R106bn (all numbers according to RAS). In 2019, consolidated EBITDA stood at R106.9bn, while the bottom line was R49.7bn. This means that in terms of EBITDA, the 2020 results should be close to 2019, notwithstanding the effect of the virus. Moreover, the 9m20 results of MOEK were well below the 9m19 figures, which should mean that the results of GEH's publicly traded gencos (OGK-2, TGK-1, Mosenergo) should be up y/y, yet this probably incorporates the positive non-cash effect from the disposal of Krasnoyarsk TPP-2 on OGK-2 financials. On a consolidated basis, GEH was FCF-positive in 2020 and is expected to be FCF-positive this year as well.
In terms of dividends, the guidance of "not less than last year" was reiterated for the publicly traded companies. The 50% payout guidance was mentioned, yet Fedorov also indicated that some forecasts could also envisage up to a 75% payout for specific companies. We see the 2020 dividend decreasing only in the case of Mosenergo, so there might be a better chance of a higher payout this year for this company.
The capex program was revised down 20% in 2020. In 2021, capex could return back to the level initially planned for 2020.
Given that it is FCF-positive and understands the effect of the CSA-driven revenue cliff, GEH is considering various M&A opportunities. Assets belonging to Quadra and Lukoil were mentioned. Also, it was stated that some service assets of Gazprom are to be transferred to GEH and GEH-Industrial assets. It is not clear whether the transfer of assets to GEH-Industrial would require any additional equity injection from the current shareholders (OGK-2 and Mosenergo in particular).
9.2.11 Metallurgy & mining corporate news
● Gold & Diamonds
The sales of Russian diamond monopolist Alrosa overtook those of De Beers for the first time ever in 2020, according to the company’ financial report released on January 21. "Judging by this data, we can say that Alrosa was ahead of De Beers by sales of natural and cut diamonds, the key products, for the first time in history,” an Alrosa representative said as cited by Prime. Alrosa reported that its revenue fell by 16% to US $2.802bn. De Beers
133 RUSSIA Country Report February 2021 www.intellinews.com
