Page 13 - FSUOGM Week 06 2020

FSUOGM
NEWS IN BRIEF
FSUOGM
RUSSIA
Moscow exchange revises
free float factor of Gazprom
shares to 50%
The Moscow Exchange has revised the free float factor of Gazprom ordinary shares to 50%, the bourse said on February 6, Reuters reported.
“The updated free float factor will apply in index calculation from 20 March, 2020, the date of the regular index constituents rebalance,” the exchange said.
The move comes after the world’s largest conventional gas producer Gazprom sold a 3.6% stake in November and a 2.9% stake in July on the market. Gazprom said in November its free float had risen to 49.61%.
February 6 2020
Linde gets engineering
contract at Amur chemical
complex
Germany’s Linde announced on February 7 that it had been awarded a contract to provide engineering, procurement and site services based on its proprietary technology for the cracker unit of Sibur’s Amur gas chemical complex. The services will be provided as part of a consortium with NIPIGAS.
February 7 2020
European gas prices fall to
15-year low of under $100
per kcm
Gas prices in Europe have fallen to $101.70 per thousand cubic metres, Vedomosti reports. Gas prices in Zeebrugge reached $95.70 per kcm on February 7, which is a 15-year low.
“We note that spot gas prices in Europe have been below $100 per kcm
in February, which is unusually low for the winter. The last time such price levels were observed was in September 2019. Given the spot price level in Europe, domestic deliveries are currently more valuable for Russian gas producers than exports to Europe, we estimate,” VTB Capital (VTBC) said in a note.
“While both Gazprom and Novatek’s
Yamal LNG export a sizable portion of gas on long-term oil-linked contracts (for Gazprom, the share of oil-linked and hybrid contracts stands at around 40%, we believe), the low level of spot European gas prices might present risks to our financial forecasts for Russian gas companies,” VTBC concluded.
Gas prices have been depressed by a combination of an unseasonably warm winter and the fact that both Gazprom and Ukraine’s national gas company, Naftogaz, built up significant reserves of stored gas in anticipation of a fresh gas war had the two companies failed to negotiate a new gas transit deal. A deal was reached in the last days of last year and both companies are now starting to unload their reserves of stored gas.
bne IntelliNews, February 10 2020
Russia approves LNG
transshipment terminal in
Kamchatk
Russian design agency Glavgosexpertiza has approved the design documentation and engineering survey results for the construction of a liquefied natural gas (LNG) transshipment terminal in the Kamchatka region.
In October 2017, the government of Kamchatka and Novatek signed an agreement to develop a marine LNG transshipment complex on the Kamchatka’s southeast coast.
The terminal will be used for transshipment of LNG delivered from the Yamal Peninsula in the Gulf of Ob by ice-class gas carriers. It will then be transferred to ordinary gas carriers for further gas delivery to the Asia-Pacific region.
The project will optimise LNG shipment from the Arctic, which in turn will facilitate the development of the Northern Sea Route. It will also boost the trade and economic relations of the Kamchatka region.
Expected to be constructed in five phases, the new transshipment terminal will be located in the Bechevinskaya Bay, in the Elizovsky district of Kamchatka, 100 km away from Petropavlovsk- Kamchatsky.
The port infrastructure will include offshore points for ship-to-ship (STS) transshipment of LNG, floating gas storage facilities, and a 6,580m-long access canal in the Bechevinskaya Bay.
A system ensuring marine safety is also part of the infrastructure.
The terminal will first service 328 gas carriers per year. Once fully operational, it is designed to service 657 gas carriers each year.
In September 2018, Novatek signed an agreement to construct the marine LNG transhipment complex in the territory of Kamchatka, with an investment of around RUR70bn ($997mn).
February 10 2020
EASTERN EUROPE
Ukraine’s DTEK operating
profit plunges by 85% y/y
in 2019
Ukraine’s leading coal and power holding DTEK Energy, controlled by the country’s richest oligarch, Rinat Akhmetov, generated UAH76.83bn ($3.1bn) in net revenue in 2019, or 15% less year on year, according
to its preliminary accounts released on February 5. The company’s operating profit plunged 85% y/y to UAH1.77bn, while net profit declined 47% y/y to UAH2.55bn.
DTEK’s cash flow from operations before working capital changes was UAH16.28bn in 2019, which is 38% less y/y. Its net debt decreased by 14% y/y to UAH44.99bn.
Alexander Paraschiy at Kyiv-based brokerage Concorde Capital wrote in a note the same day that the preliminary results implied DTEK’s adjusted Ebitda for 2019 was UAH14.5-15.0bn, which is a very weak result (below Concorde’s estimates of UAH15.5bn-16bn).
The holding’s net debt-to-Ebitda ratio is close to 3.0x, up from 1.8x as of end of the first half of 2019. Thus far, we see few drivers for DTEK to improve its profits in 2020.
bne IntelliNews, February 6 2020
Naftogaz Ukrainy says
lost about $8 bln assets in
Crimea
Ukrainian energy holding Naftogaz Ukrainy plans to submit a final $8bm estimate
of losses it suffered after Crimea’s 2014 accession to Russia to the Permanent Court of Arbitration in the Hague until the end of February, CEO Andrei Kobolev said in an
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