Page 121 - RusRPTJul20

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According to​ ​Rusal​, in April there was practically no demand for primary aluminium. ​However, there has now been a recovery to 20-30% of the level in 2019, and that could potentially increase to 50% by July. This year, Rusal does not expect a significant recovery in sales. We expect a less dramatic decrease in 2Q20 sales than Rusal does. In our view, the slump in VAP-sales could partially be offset by non-VAP, bringing a 9.5% y/y decline in the company’s total primary aluminium sales for the quarter. Total sales in 2020F are to be at 92% of 2019 sales, in our view, which means an 8% decline y/y.
9.2.13 ​Other sector corporate news
Russian multi-industry investment conglomerate ​AFK Sistema​ reported consolidated revenue growth of 6% year on year to RUB159bn ($2.32bn), with adjusted Ebitda inching up by 1% to RUB54bn under IFRS in 1Q20. Sistema showed a net loss of RUB9.4bn, mostly due to foreign currency losses in the reporting quarter. As reported by ​bne IntelliNews​, Sistema could reportedly ​sell 30% in its e-commerce asset Ozon to Russia's largest bank, Sberbank​. Last year Sistema held an SPO of children's goods retailer Detsky Mir. Previously another anchor asset of Sistema ​MTS mobile operator posted solid results in 1Q20​, while Medsi healthcare clinics also posted solid results, along with rental assets and BPGC, BCS Global Markets commented on June 10.
Russian petrochemical holding​ ​Sibur​ and China’s Sinopec have signed a shareholder agreement to create a joint venture for the Amur gas chemical complex ​project and are working to get regulatory approvals, according to Sibur’s documents seen by PRIME on Monday. “In June 2020, Sibur and Sinopec signed a shareholder agreement on the Amur gas chemical complex and are working on receiving regulatory permissions,” the document said. Sibur said in May that Sinopec already received all necessary corporate approvals for the creation of the joint venture with Sibur. Sibur said earlier that Sinopec is expected to have a 40% stake in the joint venture. Sibur preliminarily estimates investments in the creation of the Amur gas chemical complex at US $10.7bn. Sibur and Sinopec are studying the issue of attracting project financing for the Amur complex and may consider entering the borrowing market at the end of 2020 or in early 2021, a top executive of Sibur said during a conference call.
121​ RUSSIA Country Report​ July 2020 ​ ​www.intellinews.com