Page 99 - RusRPTSept20

2028. Leasing arrangements have now been signed allowing construction to start. Financing will be provided by Russian-based VEB.RF. The first five vessels in the Yamalmax series were to be built as hulls 41 to 45 at Zvezda under a letter of intent. Built for the Arctic LNG-2 project and navigating the ice- infested waters of the Northern Sea Route, the newbuilds will be Arc7 ice class designs, with dual-fuel propulsion. BRL reports the cost of each newbuild will be US$315.36M. Propulsion power for the LNG carriers will initially be four- stroke DF engines, but could switch to the popular two-stroke, Otto-cycle, low- pressure dual-fuel engines over the course of the newbuilding programme. BRL reported that the current plans call for each LNG carrier to have four Wartsila 12V50DF and two 9L50 DF main engines. “This may change to WinGD X72DF series with such a long construction span,” the report said.
Russian Tatarstan-based regional oil major Tatneft reported 2Q20 IFRS results with revenues of $1.9bn, Ebitda of $0.5bn and net income of $0.2mn, beating the consensus expectations on earnings and bottom line by 9% and 6% respectively. As reported by bne IntelliNews, Tatneft was the first Russian oil major to cancel the dividends for 4Q19 due to the coronavirus (COVID-19) crisis, prompting fears of across-the-board lower payouts in the Russian oil and gas equity universe. But since then, the company has confirmed the dividends. Given the highly volatile and tough nature of the macro environment in the quarter, BCS Global Markets consider the 2Q20 results as a neutral event for Tatneft. The analysts reiterated a Buy call on the name with target prices of $15 for ordinary and $14 for preferred shares, and suggest a focus on near-term CapEx expectations, especially for 2H20, and whether any of the company’s medium-term growth plans outlined in the 2030 strategy have been materially affected by the OPEC+ constraints and the COVID-19 crisis.
9.2.3 Aviation corporate news
Aeroflot reported 2Q20 IFRS results. The 2Q20 passenger volumes declined by 91% and turnover by 92% in the period, reports BCS.
PLF slumped by 36p.p. to 52%. Monthly statistics of 2Q showed visible improvement of domestic traffic with 33% and 291% M/M recovery in May and June respectively; similar trends seen with PLF. International traffic remained in hibernation, with 99% decline in 2Q and no M/M improvement due to closed borders.
§ Total revenue stood at RUB25.4b - 10% above BCSe. Traffic revenue was at RUB20.4bn – 6% below BCSe on lower yield, while other revenue was materially higher than BCSe at RUB4.2bn – a support from airline agreements revenues (RUB3.2bn) § Operating costs excluding lease payments stood at RUB58bn vs RUB55bn BCSe. Fuel costs decline 90% Y/Y, aircraft and traffic servicing by 80%, stuff costs by 40%. CASK stood at 8.25RUB/seat kilometer vs 7.8RUBour forecasts. Yet the beat on other revenues offset the negative impact from higher costs, and operating loss was broadly in line with us at RUB32.9bn. reported EBITDA was -RB1.9bn vs BCSe - RUB5.8bn – the discrepancy is driven by depreciation expenses. Difference between reported and expected earnings is stemming from taxation.
§ Net Debt slightly decreased over the quarter to RUB658bn on
99 RUSSIA Country Report September 2020 www.intellinews.com