Page 145 - RusRPTNov21

September), but the study of the project is ongoing, so we would be waiting for more clarity on this. We already account for this project in our model.
● Lukoil
Lukoil has signed an agreement to purchase a 15.5% stake in the Shah Deniz gas project (in the Azerbaijani sector of the Caspian Sea) from Petronas, according to Interfax. The total amount of the transaction is USD 2.25bn. After the closing of the transaction, Lukoil's share in the Shah Deniz project is to increase from 10% to 25.5%. The project has reserves of 1.2tcm of natural gas and 240mnt of gas condensate.
Lukoil has launched the construction of the second gas processing unit (GPU-2) at its Stavrolen petchem complex in southern Russia, the company reported in a statement. The unit should increase Stavrolen's capacity for processing associated gas from North Caspian fields to 5 bcm per year. Lukoil also plans to expand the capacity of the pyrolysis units at the complex to increase the annual ethylene capacity from 350 kt to 420 kt, the polyethylene capacity from 300 kt to 405 kt and the copolymer polypropylene capacity from 80 kt to 120 kt. The total investment in the integrated development of the petrochemical value chain in the Caspian region is estimated at around R300 bln, according to Lukoil CEO Vagit Alekperov.
9.2.3 Aviation corporate news
Aeroflot reported its 3Q21 RAS financials on Friday, 28 October. According to the company’s results, revenue was up 2.3x to RUB126.1bn last quarter, and the airline’s net profit reached RUB2.9bn vs. a net loss of RUB23.3bn in 3Q20.
Aeroflot does not consolidate the results from Pobeda and Rossiya in its RAS financials. The growth in AFLT’s 3Q21 financials is due to its better operating results vs. the low base of 3Q20, when some COVID-19 restrictions were in place. AFLT’s 3Q21 financials reflect the improvements in Aeroflot Russian Airline’s operating results:
PAX turnover was up 131.2% y/y to 18.1bn RPK vs. 2020 (+75% y/y to 11.8bn RPK for domestic flights and +5.9x to 6.3bn RPK for international flights).
PAX turnover was down 37.2% y/y vs. 2019 (+26.3% y/y for domestic flights and -67.8% for international flights).
PAX traffic was up 97.6% y/y to 7.5mn PAX vs. 2020 (+59.6% y/y to 5.5mn PAX for domestic flights and +5.8x y/y to 2mn PAX for international flights).
PAX traffic was down 29.2% y/y vs. 2019 (+9.5% y/y for domestic flights and +64.1% for international flights).
The PLF factor in 3Q21 was up 2.5ppts y/y to 75.8% (-7.4ppts vs. 3Q19).
145 RUSSIA Country Report November 2021 www.intellinews.com