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first half of 2018 , with adjusted Ebitda increase of 37% year-on-year to RUB16.5bn ($243mn) beating the consensus expectations by 8.8%. The board has recommended a RUB45.9 ($0.68) dividend per GDR for 1H18, which implies a 6.5% dividend yield, slightly above expectations. Globaltrans was under selling pressure last month after one of the founders of the company, Konstantin Nikolayev was named in connection with the latest spy scandal surrounding Maria Butina in the US. However, the company remained one of the top equity picks for domestic analysts . "Globaltrans remains our high conviction story in the Transportation space, combining excellent dividends with moderate growth and an attractive valuation," Aton Equity commented on 1H18 report, reiterating the Buy ratings on the company. Aton also noted that Globaltrans has started to expand its fleet more aggressively, which should accelerate earnings in the next several years. VTB Capital estimated that RUB45 dividend for the first half of 2018 would generate a "healthy 14% annualised dividend yield." Improved capital structure, and increasing leverage from its current lows of 0.4x net debt/Ebitda, might provide additional resources for the possibility of higher special dividends, the bank argued. "That would position the stock in line with the most attractive dividend payers in the Russian space, such as Severstal (12-mo div yield at 17%), Norilsk Nickel (15%) and Alrosa (13%)," on VTB's numbers.
Companies affiliated with Russian billionaires Roman Abramovich and Alexander Abramov are negotiating the acquisition of Russian Railways' (RZD) stake in cargo major Transcontainer , RBC business portal said on July 31 citing the Deputy PM and RZD board member Arcady Dvorkovich. "There is informal communication, including those investors," Dvorkovich said referring to Enisey Capital controlled by Abramovich and Abramov. Abramovich and Abramov already acquired a 24.5% stake in Transcontainer in December 2017 and now seek a controlling stake in one of Russia's most valuable transportation assets. Another major shareholder of Transcontainer is Far East port major Fesco, controlled by Ziyavudin Magomedov's Summa Group . Summa Group is a large investor in transportation assets that also include the Novorossiysk Commercial Sea Port (NSCP), Fesco ports, as well as construction, oil and gas, agriculture, and telecom assets. Since March the head of Summa, Kremlin-connected oligarch Magomedov, and his brother and ex-senator of North Caucasus Republic of Dagestan Magomed Magomedov have been in jail , disturbing the operations of some assets and prompting talk of re-distribution of large and lucrative transportation assets .
9.2.13 Other sector corporate news
Russian petrochemical major Sibur reported IFRS revenues up by 21.6% to RUB258bn ($4.1bn) in the first half of 2018 due to support from prices and continuous effect of commissioning new capacities, the company said on August 7. Company's Ebitda was up by 18.7% to RUB89.2bn. In July Sibur was said to plans to raise $2bn-3bn with an IPO based on a valuation of $20bn-$26bn that will be a litmus test of the attractiveness of Russia's largest names in the face of the mounting sanction pressure . Despite having sanctioned Kremlin-affiliated shareholders, Sibur previously placed a $500mn six-year Eurobond yielding 4.125% in September 2017, with the book for the bonds oversubscribed more than threefold. In January-June company's net profit was down 30% y/y to RUB45.9bn due to high base effect in 2017 on sales of assets, with adjusted net profit up by 4.6%. Sibur's capital expenditure was up by 44.3% to RUB70.3bn, with debt up by 4.2% to RUB325.5bn and net debt to Ebitda leverage at 1.7x. Russia's largest petrochemical holding is controlled by Kremlin insiders Leonid Mikhelson (48.5%), Gennady Timchenko (17%), and Kirill Shamalov (3.9%). Shamalov is an ex-son-in-law of Russia's
122 RUSSIA Country Report September 2018 www.intellinews.com