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bottom line was attributed by BCS Global Markets to poor performance of the American operations, and lower operating profits overall.
Russian phosphate fertiliser major Phosagro posted strong 3Q19 IFRS results, with Ebitda gaining 16% quarter-on-quarter to $329mn and making a margin of 33%, after previously showing an operational bump in the quarter. Revenues gained 11% quarter-on-quarter to $1bn, mainly driven by higher sales to Europe, Latin America and Asia, with both the top line and earnings beating consensus expectations. Adjusted net income of the company rose 27% q/q to Rb11.7bn ($181mn).
9.2.12 Transport corporate news
Russian Ministry of Transportation asked the Prime Minister Dmitry Medvedev to grant state major Russian Railways (RZD) RUB40bn ($0.6bn) from the sovereign National Welfare Fund (NWF) currently being deposited with the state-controlled VTB Bank, RBC business portal reported on November 12 citing the meetings on the investment programme of RZD. Reportedly, the funds are requested to finance the purchase of the locomotives, for which RZD budgets RUB488bn in 2020-2022. Notably, the same NWF deposits in VTB are also eyed by the Post of Russia, RBC reminds.
Russian state nuclear power agency Rosatom is planning a massive expansion in the maritime shipping market with an investment of up to $7bn, Vedomosti d aily reported on November 21 citing the presentation of the state corporation to banks. Reportedly, now Rosatom aims to become one of the top 15 maritime shippers in the world, transporting cargo from South-East Asia to Europe via the Arctic Northern Sea route, competing with alternative routes on the Pacific and Indian oceans, the Suez channel, and the Mediterranean. Rostatom's subsidiary Atomflot is the only operator of nuclear icebreakers in Russia that are necessary to navigate the Northern Sea Route. The company currently operates three nuclear icebreakers, but another two have already been commissioned. Currently the company is not involved in shipping, but is only accompanying shipments (331 vessels carrying 12.7mn tonnes in 2018).
9.2.13 Other sector corporate news
MD Medical Group in 3Q19 pressured by soft demographics MDMG’s revenues grew 11% y/y in 3Q19, in line with our annual forecast with a YTD advance of 10% y/y. During the quarter, the number of deliveries was flat y/y, implying a modest performance as the number of births across the country is declining for the fourth consecutive year (down 8% y/y in 8mo19), slowing the ramp-up of new hospitals. The IVF segment positively surprised, with a 24% y/y surge in cycles, as the comparison base was low and MDMG is more actively participating in state programmes (55% of total cycles vs. 50% last year). We reiterate our forecasts and 12-month Target Price of $7.00, that now implies a 53% ETR. The stock trades on 2020F EV/EBITDA of 4.7x, a 25% discount to our Eastern European healthcare coverage.
121 RUSSIA Country Report December 2019 www.intellinews.com
