Page 164 - RusRPTMay21

9.2.2 Automotive corporate news
The net profit of Russian car producer AvtoVAZ soared by 90% to 741.656mn rubles in 2020, as calculated under Russian Accounting Standards (RAS), the company said in a statement on Monday. Revenue fell by 12.1% to 256.9bn rubles, while the gross profit rose by 2.7% to 20.995bn rubles and the sales profit soared by 64% to 6.748bn rubles. Long-term liabilities grew to 119bn rubles in 2020 from 81.4bn rubles in 2019 and short-term liabilities rose to 86.1bn rubles from 51.7bn rubles.
9.2.3 Aviation corporate news
Aeroflot Group reported its operating results for March, 22 April. According to AFLT’s numbers, PAX traffic declined 5.9% y/y to 2.8mn PAX (-59.6% y/y to 0.4mn PAX for international flights and +19.4% y/y to 2.4mn PAX for domestic flights), which is in line with the figures released earlier this month by Rosaviatsiya. Capacity decreased 40.9% y/y to 7bn ASK (-71.2% y/y to 1.7bn ASK for international flights and -9.5% y/y to 5.2bn ASK for domestic flights). PLF strongly improved by 19.5ppts y/y to 82.8% (+12.6ppts y/y to 73.4% for international flights and +20ppts y/y to 85.9% for domestic flights) while PAX turnover dropped 22.7% y/y to 5.8bn RPK (-65.3% y/y to 5.8bn RPK for international flights and +18% y/y to 4.5bn RPK for domestic flights).
Aeroflot back in business. 25% of Aeroflot Airlines’ fleet was idled in 1Q21. However, the company aims to reduce this number to 12% in April and 0% in June, said CEO Mikhail Poluboyarinov to RBC. RBC also states that the company’s main priority now is to increase flights and improve its financial results. One might have thought that this is an obvious target for a commercial company. However, we note that Eugene Chudnovsky, the president of one of the Russian airports authorities, stated recently that it was Aeroflot which saved the balance in the industry by grounding its fleet and stepping back from competition in 2020. The company’s current plan is to increase flight frequency to southern holiday destinations, which are in demand given the lack of international alternatives (southern airports posted 10-40% y/y increases in domestic traffic in 2mo21). Thus, we do not expect a detrimental effect on the profitability of these flights. We reiterate our 12-mo TP of RUB90 and Buy (ETR +35%), and once again point out that Aeroflot is one of the cheapest airlines globally, despite Russia being a leader in traffic recovery.
9.2.4 Construction & Real estate corporate news
PIK has received a contract for the Moscow renovation programme to build 1.8mn sqm in North Izmailovo for a total value of RUB205bn. Overall, the tender process for new contracts under the programme has accelerated and has seen a value of RUB3.2bn YTD, representing 84% of the total since its
164 RUSSIA Country Report May 2021 www.intellinews.com