Page 175 - RusRPTSept21

and the RUB400mn loss from associated companies (vs. income of RUB300mn in 2Q20).
Russia’s largest power generating company Mosenergo posted 26% y/y EBITDA growth in the first half of this year, but analysts are worried about the company’s earning outlook thanks to an investment in REP Holdings, VTB Capital said in a note on August 10. Mosenergo’s finances remain “solid but with risks,” following an output increase in 2021, but those risks are currently contained and VTBC has maintained its “Buy” recommendation on the stock as VTBC believes that the FY21 results will be not worse than 2020. The company’s revenues increased by 20% y/y in 2Q21, driven by higher electricity output (+15%) and spot electricity prices (+16%), the company reported, offsetting the negative impact on revenues from the expiration of the capacity supply agreements (CSA) for one of Mosenergo's units at the end of last year. However, the company’s financials highlight the governance risks at Mosenergo. The losses from the company's investment into REP Holding, and the cash build-up ahead of the potential acquisition of Rusenergosbyt (Russia's largest independent supply company), are just two examples of how the company can spend cash. REP Holding is a leading Russian power machine building enterprise, a designer, manufacturer and supplier of new generation power machines that has been part of Gazprom Energoholding Group since 2019.
InerRAO posted a strong recovery in financials backed by solid operating numbers, especially in export and electricity output. EBITDA up 54% (23%/13% beat to BCS/Cons). Positive ST take but still the key focus on LT motivation plan and possible M&As.
Expected recovery in financials dynamics have been reported, driven by solid growth in all operational lines, especially in export volumes (+77% y/y).
· Revenue up by 22%, on 20% y/y growth in electricity output, spot prices recovery and >77% rise in export volumes.
· EBITDA came 54% y/y, beating BCSe by 23% and Cons by 13%
· Net income almost doubled Y/Y and came 46%/39% above
BCSe/Cons
· Cash pile decreased by Rb60bn (18% q/q) related to recent
acquisition of 11 Engineering/construction/IT companies
Unipro reported its 2Q21 IFRS results and held a conference call. Revenues increased by 20% y/y to R42.1bn, 5% ahead of our estimate and 8% above the Interfax consensus. EBITDA was up 39% y/y at R7.5bn, 23%
175 RUSSIA Country Report September 2021 www.intellinews.com