Page 155 - RusRPTJan21

investors, as Nornickel demonstrated that it is aiming for a complete turnaround of its ESG practices. We reiterate our BUY call on the stock.
TMK​ released 3Q20 IFRS. The results beat BCSe and consensus on adjusted EBITDA mainly given the change in calculation methodology.
· Revenue fell 10% q/q to Rb51.2bn, potentially on the back of lower realized pipe prices (-2% vs BCSe and -7% vs consensus)
· Adjusted EBITDA increased 108% q/q to Rb17.6nn (96% vs BCSe and 106% vs consensus) on the back of the change in adjusted EBITDA calculation methodology, with the figure now including foreign exchange gain or loss arising on accounts receivable and payable, which is considered by the company as part of operations. Excluding these adjustments, adjusted EBITDA would have stood at Rb8.5bn – in line with consensus and 6% below our estimate
· Adjusted net income rose to Rb9.5bn materially ahead of us and consensus mostly due to the change in adjusted EBITDA methodology calculation
· The company expects demand for OCTG pipe from Russian oil and gas companies to remain stable until the end of the year
· In Europe, demand for industrial pipe may be negatively impacted by deteriorated market conditions, resulting from new COVID-19 lockdowns
· The company expects 2020 adjusted EBITDA to be generally in line with 2019
9.2.13 ​Other sector corporate news
Sistema reported its 3Q20 financials, 3 December. Here are the key things you should know:
The 3Q20 numbers were stronger than expected. Revenue was up 10% YoY to RUB 184.9bn, coming in 1% higher than our estimates and 3% higher than Interfax consensus. Adjusted EBITDA increased 14% YoY, beating our and street expectations by 3-5%. The results beat was mainly due to the stronger-then-expected performances of Steppe and Medsi. Steppe was able to increase its revenue (+48% YoY) and adjusted EBITDA (+80% YoY) substantially thanks to increased sales volumes and higher prices. Medsi’s revenue and
155 ​RUSSIA Country Report​ January 2021 www.intellinews.com