Page 123 - RusRPTDec20

Transneft​’s management reiterated its plans to cut capex in 2020 and 2021 by 20% and 12%, respectively​, according to Igor Demin, advisor to the president of Transneft, as reported by Kommersant today. The company said it was unable to keep capex at previous levels due to the government not allowing Transneft to pay out FY19 dividends in installments. The monopoly plans to spend RUB3.6bn on new projects and RUB236.8bn on reconstruction in 2020 before decreasing spending on both in 2021 to RUB2.5bn and RUB234.9bn, respectively.
9.2.2 ​Automotive corporate news
9.2.3​ Aviation corporate news
The net loss of Russian car producer​ ​Ford Sollers​ amounted to RUB1.058bn in January–June ​after 136mn in the same period of 2019, as calculated under International Financial Reporting Standards (IFRS), the company said in a report on Friday. Revenue increased by 50% to RUB23.14bn. The gross profit grew 2.1% to 3.664bn.
Aeroflot​’s revenue declined 67.4% y/y to RUB55.2bn, ​as the airline reported a gross loss of RUB20.4bn vs. a gross profit of RUB26.3bn in 3Q19. The bottom line was negative RUB23.3bn vs. net income of RUB21.4bn in 3Q19. The airline’s weak financials are the result of weak operating results last quarter. Aeroflot’s PAX turnover declined 73% y/y to 7.8bn RPK, including a 95% y/y drop in international flights and a 28% y/y drop in flights to domestic destinations. Moreover, the PAX load factor fell 10ppts y/y to 75.8% in 3Q20. However, the airline said that it has managed to sustain its yields at levels comparable to 2019.
Aeroflot​ October trading results show a m/m slowdown driven by both seasonality and the second wave of COVID.
The results showed a m/m slowdown on seasonality and COVID headwinds.
October PAX was at 2.7mn passengers – down 47.1% y/y and 19.5% m/m. RPK declined by 58.2% y/y and 22% m/m. PLF fell 4.7pp y/y to 78%
The decline in RPK was largely driven by domestic flights, which declined 25% m/m due to seasonality and the 2nd wave COVID -19, we think. On international flights, RPK was almost flat as Aeroflot continued to restore its international flights. In addition to flights to Turkey, the UK, Switzerland, Egypt, the UAE, the Maldives, Kazakhstan, Kyrgyzstan and Belarus, due to regulatory approval, flights to Seoul (South Korea) and Belgrade (Serbia) were added with limited frequency. In November, flights to Tokyo (Japan) have also resumed with limited frequency.
123 ​RUSSIA Country Report​ December 2020 www.intellinews.com