Page 14 - FSUOGM Week 04 2021

FSUOGM NEWS IN BRIEF FSUOGM

RUSSIA this could not be the case for 2021. Production of this new high-octane fuel,
The ruble’s weakness is the main catalyst which is fully compliant with Euro-5
Gazprom establishes a for the company’s preferred shares, in Sova environmental standards, is the result of a
analysts' view, with the ruble strengthening
technological modernisation programme at
company in Mongolia for being the main risk. Ordinary shares the plant.
This 100-octane gasoline is designed for
could move higher if there are reports of
the Sila Sibiri 2 feasibility corporate governance changes. modern engines — the high octane number
increasing engine power and boosting
The company reported $3.7bn in 3Q20
study revenues under Russian Accounting acceleration while reducing vibration and
noise levels: a further advantage being
Standards (RAS), with Ebitda of $1.1bn.
Gazprom has set up the Gazoprovod Soyuz Surgut's net cash position, or the infamous easy engine-starting at low temperatures.
Vostok company in Mongolia to develop "cash pile", was up $0.5bn quarter on The Slavneft-YaNOS 100-octane gasoline
technical feasibility studies for the Sila Sibiri quarter, from circa $47.3bn to $47.8bn, has been successfully tested at the OAO
2 gas pipeline project, the Russian gas giant largely in line with expectations.." VNIPIneft Research and Design Institute
said on Friday, reports Prime news agency. for Oil Refining and the Petrochemical
The pipeline is planned to run from Industry, and will be made available in
Russia across the territory of Mongolia to Putin says hydrocarbons North—West Russia.
China. Gazprom Neft’s Omsk and Moscow
"The pipeline Soyuz Vostok will be [a] to remain in demand for Refineries also produce additive-free high-
continuation of Russian pipeline Sila Sibiri performance fuels — the Omsk Refinery
2 on the territory of Mongolia; the export decades having succeeded in producing a 100-octane
capacity can exceed the export capacity of fuel following the commissioning of its
Sila Sibiri [Power of Siberia] by more than The structure of the global energy automated gasoline-blending facility in
30%," CEO Alexei Miller said as cited by the consumption is unlikely to change in the 2018, and the Moscow Refinery having
company. coming decades, hydrocarbons will remain added its G-Drive-100 gasoline to its
"This will help us export gas from in demand, President Vladimir Putin said at existing product line following the launch
West Siberia in larger volumes not only a meeting with students on January 25. of its cutting-edge Euro+ refining complex
westwards, but eastwards as well." "The use of alternative energy sources in 2020.
will rise, of course, but the consumption
structure will barely change significantly GAZPROM NEFT
Surgut could lose dividend in the coming decades. Hydrocarbons will A new production complex
remain in demand for a long time," Putin
appeal said, adding that energy consumption is
forecast to rise due to the increase of global
After paying a handsome dividend yield economy. in Omsk will allow Gazprom
of 15% for 2020 on its preferred shares, He also said that Russia will develop Neft to increase production
Russian oil major Surgutneftegas could alternative energy sources as well.
barely show net profit in 2021 due to further of advanced synthetic
strengthening of the ruble, thus losing its
dividend appeal, Sova Capital analysts argue Two tanks burning on lubricants
on January 19.
As followed by bne IntelliNews, Surgut is territory of Ufaorgsintez Gazprom Neft has begun construction of
Russia's oil sector's "dinosaur" known for its a hydroisodewaxing complex at its Omsk
ultra-conservative financial policies, basing facility lubricants plant. This complex will produce
operations only in rubles, and its $50bn- base oils for high-tech synthetic lubricants
odd cash pile, which is almost as much as Two tanks are burning on the territory of used on modern automotive equipment
Russia’s sovereign reserves. the Ufaorgsintez plant, an official of regional and industrial machinery, allowing the
While the company's preferred shares emergency services said on January 25. company to free itself completely from
are among the best dividends payers in "Two tanks are burning in open air on using imported base oils in producing
Russia, ruble appreciation undermines the the territory of the plant of Ufaorgsintez. premium product lines. The facility has a
net profit of the company, making it less We are trying to understand what is design capacity of 220,000 tonnes per year.
attractive as a dividend play. burning and on which area. The fire is Gazprom Neft’s investment in this project
For now, Sova Capital keeps assigned the fourth degree of complexity stands at more than RUB32bn.
Surgutneftegas shares on Hold (13 fire brigades are required)," the official Construction of the hydroisodewaxing
recommendations for both ordinary and said. complex is being synchronised with the
preferred shares, and the analysts believe planned development of Gazprom Neft’s
that "the 15% yield for prefs in 2020 is Omsk Refinery. Feedstocks for production
attractive enough before it goes ex-dividend Production of 100-octane of Group II- and Group III-quality base oils
in the summer." will be supplied from the hydrocracking
"In our view, Surgutneftegas is really only gasoline launched at unit at the deep refining complex due to
a dividend play for its prefs, and the other be commissioned at the Omsk Refinery in
news around the company, i.e. hopes for Slavneft-YaNOS 2021. This solution integrates production
changes in corporate governance or strategy, of synthetic base oils into a single process
have never materialised," Sova Capital The Slavneft-YaNOS oil refinery has started chain, facilitating additional output of
reminds, noting that while dividends on commercial production of a cutting-edge products in considerable demand on the
preferred shares look attractive for 2020, gasoline with an octane number of 100. market while further increasing refining

P14 www. NEWSBASE .com Week 04 27•January•2021