Page 89 - RusRPTFeb20

outlook was uncertain​ over the compensation to foreign clients and passing new tariffs amid clashes with ​domestic oil giant Rosneft over oil quality​. Transneft previously pledged to compensate up to $15 per barrel of contaminated oil, or a total of RUB23bn ($371mn). However, reportedly, most of the European buyers of oil claim $30-40 per barrel compensation. The buyers of the oil include such majors as Eni, Shell, Glencore, Trafigura, PKN Orlen and British Petroleum. The only companies that have so far settled with Transneft at the $15 per barrel compensation are Kazakh oil buyers and domestic oil major Lukoil (reselling to Hungarian MOL). Transneft reported net profit decline of 30% q/q to $607mn under IFRS in 3Q19, while revenues gained 5% q/q and Ebitda 10%. Despite the decline, the net profit still exceeded consensus expectations by 14%. BCS Global Markets believes that the market has overestimated the amount of compensatory reserves due to the Druzhba contamination issue.
9.2.2 ​Automotive corporate news
Russia’s most popular car brand, Avtovaz’s Lada, sold 362,356 units in Russia in 2019 – a gain of 1% ​on the previous year, with the company saying its Russian market share in all light vehicles, increased from 20.0% to 20.6%, Just-auto.com reported as cited by Russia business today. The two leading sales models on the Russian market for the second year in a row are the Granta with a result of 135,831 cars (+27.8% over 2018) and Lada Vesta at 111,459 units sold. Lada’s total LCV sales result was 11,052 units, which is more than 90% of the sub-segment of small light commercial vehicles, it says. The Top 3 regions with the largest Lada sales in 2019 were Moscow and the Moscow region, Samara region and the Republic of Tatarstan, the company said. Lada exported around 50,000 units in 2019 – a gain of around a third on 2018’s level. Major export markets were Belarus and Kazakhstan.
Russia's largest carmaker ​AvtoVaz​ will buy out the 50% stake in the joint venture with General Motors, ​consolidating 100% in the company producing Chevrolet Niva in the city of Toliatti, Reuters reported on December 9 citing the report of the company. The amount of the deal and other details are undisclosed. Chevrolet-branded cars will gradually be changed to AvtoVaz's leading Lada brand. The GM-AvtoVaz plant was built in 2001 with the capacity of 100,000 SUVs Chervrolet Niva annually. The model is a take on Soviet SUV Niva developed by ​the GM.
9.2.3​ Aviation corporate news
Moscow Sheremetyevo international airport increased its capacity by 20mn passengers to 80mn people annually​, by launching the Terminal C costing RUB32bn ($0.5bn) with a second stage due to be completed in 2026. Overall Sheremetyevo ​planned a $2.5bn expansion adding two passenger terminals​, a railway, and a new cargo terminal, increasing the passenger turnover capacity to 100mn people annually by 2026. Sheremetyevo’s shareholders are reportedly planning to sell 30% of the airport, and the funds raised would finance the expansion.
Analysts are increasingly keen on the stocks of Russian national air carrier ​Aeroflot​ ​after it had a terrible 2019. The company is seen as recovering and its share price has surged in the first weeks of 2020, according to the special report by VTB Capital released on January 21, arguing that "after
89​ RUSSIA Country Report​ February 2020 ​ ​www.intellinews.com