Page 173 - RusRPTJun24

Over the year, the company generated negative FCF of about RUB 0.6 trillion, but in 2H23 it was even moderately positive. This implies a need to raise new debt only to refinance existing debt, which is in line with management's expectations for 2024, announced at the end of December.
Cash on the balance sheet increased to ₽1.4 trillion after ₽0.7 trillion at the end of July. The total debt increased to ₽8.7 trillion, the share of ruble debt increased to 56% from 24% at the end of 2020.
For Gazprom's companies, the debt ratio exceeding the threshold of 2.5x may even be positive, because It makes no sense for the company to issue new securities of this type, and limiting their volume in circulation reduces the risk of activating the loss absorption function.
Noteworthy is the sharp increase in debt service payments - from ₽0.27 trillion to ₽0.42 trillion. Their volume will increase even more in 2024 due to an increase in rates on the local market and the gradual refinancing of replacement bonds (SO)/Eurobonds with a low coupon with high-coupon ruble bonds. Accordingly, the company will become increasingly sensitive to borrowing costs over time. It is possible to begin issuing bonds in yuan.
● Rosneft
Rosneft asks Kremlin to compensate for costs of protecting oil refineries from drones. The CEO of Russia's state-controlled oil company, Rosneft, sent a letter to Russian Prime Minister Mikhail Mishustin asking the Kremlin to approve tax breaks to offset the cost of preventing drone attacks on the company's oil refineries, Russian state-controlled media reported on May 23.
● Novatek
173 RUSSIA Country Report June 2024 www.intellinews.com