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MRSK Ural saw nearly stable revenue (+0.4% y/y to RUB24.8bn), while distribution revenue was down 0.5% y/y to RUB18.7bn. Resale revenue was up 2.2% y/y to RUB5.3bn and revenue from connection fees was up 16.9% y/y to RUB1.1bn. COGS was down 0.7% y/y to RUB24.3bn, while cash operating costs were down 2.5% y/y at RUB21.8bn. Adjusted EBITDA was up 29.3% y/y to RUB3bn. The company’s net financial expenses quadrupled to RUB0.3bn, while depreciation was up 5.8% y/y to RUB1.9bn. Other non-cash income reached RUB0.8bn vs. non-cash expenses of RUB0.4bn in 4Q19. The company’s net loss was RUB0.1bn vs. net income of RUB0.5bn in 4Q19. FY20 revenue was 2.2% y/y higher than we expected, while adjusted EBITDA was 23.7% better than we estimated for 2020. The bottom line for 2020 was RUB662mn, which is better than our estimate of a RUB486mn loss. We do not expect a 2020 dividend from MRKU.
MRSK Center reported a 7.5% y/y increase in revenue to RUB27.9bn in 4Q20, with distribution revenue up 6% y/y to RUB26bn, resale revenue up 10.1% y/y to RUB0.7bn and connection fees up 4.6% y/y to RUB0.1bn. COGS remained almost stable (+0.3% y/y to RUB24.9bn) while cash COGS rose 2.1% y/y. Adjusted EBITDA was up 26.5% y/y to RUB7.3bn. Depreciation was up 13% y/y to RUB3.1bn, while the company’s net financial expenses reached RUB2bn vs. net financial income of RUB0.9bn in 4Q19. Non-cash expenses were up 56.3% y/y to RUB3.6bn, while the company’s net loss reached RUB1.7bn vs. net income of RUB1.1bn in 4Q19. FY20 revenue stands at RUB94.6bn, which is 1.7% higher than our estimates. Net income for the whole year reached RUB2.2bn, which is 47.8% weaker than we expected, leading to downside risks to our dividend expectations. Assuming a 2020 payout ratio that is in line with the 2019 DPS, MRSK Center could pay out a 2020 DPS of RUB0.014/share, implying a dividend yield of only 3.7%
ROSSETI Volga saw its revenue drop 0.8% y/y to RUB16.4bn, with electricity distribution revenue down 0.8% y/y to RUB16.2bn in 4Q20. COGS was up 5.7% y/y to RUB15.7bn, while cash operating costs were up 4% y/y and adjusted EBITDA was down 25% y/y to RUB2bn. The company’s net financial expenses reached RUB66mn vs. net financial income of RUB8mn in 4Q19. Depreciation was up 8.7% y/y to RUB1.3bn, with taxes decreasing 72.2% y/y to RUB0.1bn. Expenses from other non-cash items reached RUB0.1bn vs. gains of RUB0.4bn in 4Q19, while net income dropped 75.2% y/y to RUB0.4bn. The results were almost in line with our expectations on the top line and EBITDA for 2020. We do not expect any 2020 dividends from MRKU.
9.2.11 Metallurgy & mining corporate news
● Gold & Diamonds
Alrosa reported diamond revenue of $372mn for February, a 7% y/y growth. However, this growth comes against the low base of 2020. Management sees the market as supporting both buyers and sellers. The
176 RUSSIA Country Report April 2021 www.intellinews.com