Page 170 - RusRPTSept21

Rostelecom now plans to consider a RUB5.5-RUB6 dividend per share for 2021, in line with expectations and making 6% dividend yield for common shares and 6%-7% for preferred shares. The suggested dividend would make 10-20% increase y/y and be above the dividend policy’s minimum of 5% yield. Still, this would lag other telecom peers, BCS GM notes, such as MTS with 10%+ yield.
Notably, Rostelecom could follow other Russian mobile operators and consider monetization of tower infrastructure.
9.2.10 Utilities & Renewables corporate news
En+ is considering hydrogen production via electrolysis using its existing and new HPPs, Kommersant reported yesterday. The plan is to use the currently available 228MW of its HPPs capacity and build a new HPP with 1GW fully dedicated to hydrogen production. The preliminary estimate of potential hydrogen output using HPPs is 133kt per year, including c. 18kt of existing HPP capacity and 115.6kt with new HPP. The new HPP being considered is the Motyginskaya HPP on Angara River in the Krasnoyarsk region, with a project capacity of 1.1GW. En+ estimates the cost of the HPP construction at $1.3 bn over nine years. The deputy governor of the Krasnoyarsk region estimated the HPP’s construction cost at RUB 66bn ($2.1 bn) in June 2010. En+ targets a cost of electricity generation at $42.4/MWh with the expected cost of hydrogen production at $2.9/kg and liquid hydrogen at $4.4/kg (including $0.6/kg transportation cost) and ammonia at $4.9/kg. The controlling shareholder of En+, Rusal, is also considering the production of aluminum tank containers for the transportation of hydrogen and ammonia. En+ estimates demand for tank containers with a volume of 43.5 m3 each at 13.4-47k until 2035. En+ targets to start of production of containers in 2024.
Russian utilities more appetite for green energy supply. On Wednesday 4 July, Kommersant reported that Hevel would be putting up for auction 717.4th MWh of electricity from its solar capacity in the Kalmikya, Bashkiria, Orenburg and Saratov regions (187th MWh in five months of 2021 and 530th MWh in 2022).
The starting price of the auction is expected to be RUB 80/MWh, a 5% premium to the market price. The winner would sign a bilateral contract and be able to use the electricity in order to reduce its carbon footprint. Hevel estimates the reduction of CO2 due to such bilateral contract at 380kt of CO2. The additional revenue is estimated at about RUB 60mn (in contrast, exporters could have paid RUB 980.5mn of carbon tax) vs. total revenues of RUB 1bn. The auction is to take place from 2 to 6 August (Hevel noted that many applications had already been submitted).
170 RUSSIA Country Report September 2021 www.intellinews.com