Page 144 - RusRPTDec21

banking activities came in at negative RUB70mn in 3Q21 vs. RUB351mn in 2Q21. Tatneft booked a RUB2.3bn FX gain, while net income was in line, coming in just slightly ahead of our estimate and below consensus at RUB52.1bn.
Tatneft’s BoD recommended an interim dividend of RUB9.98/share for 3Q21 (2% yield for ords and prefs), meaning a payout of 50% of RAS net income. The company already paid out RUB16.52/share for the 1H21 interim dividend, meaning the interim dividend for 9M21 is RUB26.5/share. Had Tatneft paid out 50% of IFRS net income for 9M21, the dividend would be RUB31/share. The company’s dividend policy stipulates that the company pay out 50% of IFRS or RAS net income, whichever is higher. This means the company has to add RUB4.5/share to its final dividend.
In 3Q21, Tatneft’s capex came in at RUB30.4bn, up 22% q/q and 15% y/y. Most of the spending increase came in the downstream this quarter, with investments up from RUB13.3bn in 2Q21 to RUB18.8bn in 3Q21. Operating cash flow came in stronger than we expected, at RUB84.7bn vs. our forecast of RUB64.6bn, in part due to a working capital benefit, which caused FCF to nearly double q/q to RUB54.3bn.
The company now has a net cash position of RUB11.6bn after having net debt of RUB6.6bn in 2Q21, but this was mainly due to bank deposit placements that were shown as an outflow on the cashflow statement, which brought down cash and cash equivalents.
9.2.3 Aviation corporate news
Aeroflot reported its 3Q21 IFRS results on November 29. During the quarter, revenue was up 2x y/y to RUB167.1bn (-21.4% vs. 3Q19) and EBITDA was up 2.7x y/y to RUB54.1bn (-26.3% vs. 3Q19).
The company reported net income of RUB11.6bn vs. a net loss of RUB21.1bn in 3Q20 (-60% vs. 3Q19). The results were in line with consensus on the top line, and they were 6.6% and 38.5% better than consensus for EBITDA and the bottom line, respectively. Compared to our forecast, the results came in 3% below our top-line estimate, although they came in 0.9% and 29.6% better for EBITDA and the bottom line, respectively.
Operating results.
Aeroflot Group’s 3Q21 operating results showed decent improvements. PAX turnover was up 65.3% y/y to 34.7bn RPK (-26.6% vs. 3Q19), with domestic PAX turnover up 33% y/y to 25.6bn RPK (+23.7% vs. 3Q19) and international PAX turnover up 4.1x y/y to 9.2bn RPK (-65.7% vs. 3Q19). PLF was up 0.9ppts y/y to 83.9% (-4.6ppts vs. 3Q19), with PLF for domestic routes up 3.8ppts y/y to 87.7% (-3.2ppts vs. 3Q19) and PLF for international routes up 0.4ppts y/y to 74.8% (-11.9ppts vs. 3Q19).
Higher-than-expected finance income. We see the difference on the
144 RUSSIA Country Report December 2021 www.intellinews.com