Page 137 - RusRPTDec20

RusHydro​’s CEO said next year dividends (for FY20) will be 1.5x higher​. In addition, current CEO Shulginov was nominated as the new Energy Minister. Analysis: Higher DPS a beat vs BCSe, but will depends on 2H20 results. Our FY20 DPS estimate is Rb0.48/s – +30%. The potential 50% increase sounds upbeat if delivered, but 3Q20 and 4Q20 financials matter. We also think that the new CEO may spur a new round of initiatives regarding the potential spin off of Far East assets (‘reshuffle’) that was strongly opposed by the current CEO. However, with Shulginov taking the seat of Energy Minister – i.e., also responsible for HYDR’s development – we do not believe that the company’s strategy will be changed significantly.
Mosenergo reported its 3Q20 RAS results on Friday, 30 October​. Mosenergo saw a 1.6% y/y decline at the revenue level, which is in line with the 4.5% y/y drop in electricity generation to 10.8mn MWh in 3Q20. However, the 1.2% y/y increase in liberalized electricity prices in the European part of Russia did not manage to offset the weakness in operating results. EBITDA declined 2.6% y/y, while the bottom line saw net loss expand 2.3x to RUB0.6bn in 3Q20.
OGK-2​ reported its 3Q20 IFRS results on Friday, 13 November. ​The top line declined 6.9% YoY to RUB 28.4bn due to the 11.7% YoY decrease in electricity generation to 11.1mn MWh. The 1.2% YoY growth in electricity prices in the European part of Russia was not enough to offset the company’s weak operating results for the quarter. Moreover, heat output dropped 27.2% YoY to 0.8mn GCal. Lower COGS partially offset the drop in the top line, as fuel expenses decreased 6.9% YoY to RUB 12.8bn in 3Q20. EBITDA was down 23% YoY to RUB 5.7bn and the company’s net income was down 31.9% YoY to RUB 1.8bn.
Rosseti​ (Russian Grid) and Federal Grid Company reported their 3Q20 RAS results on Friday, 30 October​. FEES reported a 4.9% y/y growth at the revenue level to RUB60.4bn, with connection fees almost doubling to RUB3.9bn. COGS grew a marginal 1.5% y/y to RUB43.8bn in 3Q20, while distribution fees were up 1.3% y/y to RUB43.3bn. EBITDA increased 25.2% y/y to RUB34.8bn and net income doubled to RUB18.2bn in 3Q20. ROSSETI’s RAS financials are not consolidated and show the results of the holding company. The company’s bottom line rose significantly to RUB8.9bn in 3Q20 vs. a net loss of RUB22.7bn in 3Q19.
A number of​ ​Rosseti​ (Russian Grid) subsidiaries (ROSSETI Lenenergo, ROSSETI Siberia, MRSK North-West and MRSK Ural) published their 3Q20 IFRS results on 23 November.
MRSK Ural saw revenue decline 5% y/y to RUB20.6bn in 3Q20 due to the 2.6% y/y drop in electricity distribution revenue to RUB15.8bn and the 14.9% y/y drop in electricity resale revenue to RUB4.3bn. COGS
137 ​RUSSIA Country Report​ December 2020 www.intellinews.com