Page 109 - RusRPTSept21

Russian integrated agriculture major Rusagro posted 59% year on year gain in Ebitda to RUB11bn ($150mn) for 1H21 under IFRS, making a 20% margin. The company proposed to pay a $0.89 interim dividend per global depository receipt (GDR) on the earnings in the reporting period. Sberbank CIB commented on August 17 that Rusagro's 1H21 results were strong, with the surprise dividend announcement making the highest payout for the period on record. Total payout is about $120mn, making 50% of net income for the period and almost four times the average 1H interim dividend.
RusHydro’s 2Q21 IFRS results broadly matched our and consensus expectations, revealing a q/q improvement of profitability. During the conference call, management reiterated the adjusted dividend base (supporting our 9-10% dividend yield forecast) and the company’s involvement in value-accretive DPM2 projects (with 12.5% nominal and 11% effective return), which we believe will trigger long-term growth. However, it also said that write-offs might return, as it could not rule out material write-offs after the consolidation of DVEUK, which it expects in 2023 through the additional share issue. The company confirmed work was in progress on a feasibility study for the RUB400bn Amur anti-flood stations; however, it provided no details on the financing of this project, its generated return or government participation. This leaves material risks to the Amur project unaddressed, in our view. We reiterate Buy, 12-month Target Price of RUB1.05 (36% ETR).
109 RUSSIA Country Report September 2021 www.intellinews.com