Page 93 - RusRPTJune18

19.5% revenue growth to $2.7bn, and 20.4% Ebitda increase to $572mn.
Russia's second-largest bank VTB increased its stake in En+ utilities and metals major by 6.25% to 9.62%, Vedomosti daily reported on May 28 citing deputy head of the bank Yuri Solovyev. En+ is controlled by sanctioned Russian billionaire Oleg Deripaska and along with its subsidiary aluminium major Rusal and other Deripaska's businesses has been rocked by US Department of Treasury sanctions introduced on April 6 . Reportedly after a margin call VTB got the stake of Singapore AnAn affiliated with troubled Chinese energy major CEFC, which acquired $500mn worth of En+ shares at the November 2017 IPO in London. Solovyev reiterated that VTB's exposure on Deripaska's companies is minimal and that currently all transactions with sanctioned companies are halted.
Moscow utility major Mosenergo reported revenues of RUB72bn ($1.15bn) in the first quarter of 2018 , posting 9.3% y/y growth and meeting consensus expectations. Ebitda increased by 12.4% to RUB19.7bn, while net profit was up by 12.1% y/y to RUB12.7bn, in line with the forecasts. "The numbers continue to show strength," VTB Capital commented on May 15, noting that Mosenergo has also moved into net cash territory due to a 24% capex decline in the reporting quarter. However, while the results might seem robust, VTB reminds that the company might face a profitability cliff in the second half of 2018, as the expiry of some tariffs 27 "is set to wipe out the profitability growth." VTB thus reiterated its expectations of full-year 13% y/y decline in Ebitda and net profit drop of 27% y/y.
Renova Group that unites the assets of sanctioned Russian oligarch Viktor Vekselberg is considering selling electric utility major T Plus , that controls 61 generation facilities in 16 Russian regions with a total capacity of 15.7HW, Vedomosti daily said on May 21. Reportedly the asset could be sold to GazpromEnergoHolding that controls utility assets of Gazprom natural gas giant, Interfax said citing unnamed sources. Previously a similar deal was blocked by Federal Antimonopoly Service (FAS) in 2015, but currently the deal is being discussed again with the watchdog. While the negotiations were confirmed to Vedomosti by unnamed federal official, GazpromEnergoHolding representatives declined to comment.
9.2.11 Metallurgy & mining corporate news
Norilsk Nickel reported its the first quarter of 2018 trading update on May 1. Production numbers were strong, showing significant y/y growth across nearly all metals. The output increase reflected the completion of the main phase of the reconfiguration of the downstream last year and positive contribution from the processing of copper concentrate purchased from Rostec (copper production jumped 18% y/y). The company reiterated its full-year 2018 production guidance for its key assets. It plans to produce 210-215 kt of nickel (generally flat y/y), 400-420 kt of copper, ex-Chita (up around 6% y/y), 2,630-2,725 koz of palladium and 600-650 koz of platinum (slightly down y/y). The ramp-up of the Chita copper project has gone slower than expected, which eventually compelled the company to somewhat decrease its production guidance. However, the reported problems look temporary and resolvable.
Russian metals major Norilsk Nickel (NorNickel) plans to invest RUB25bn ($402mn) through 2023 into the modernisation of industrial facilities in
93 RUSSIA Country Report June 2018 www.intellinews.com