Page 160 - RusRPTSept22

carbon-free electricity and aluminium. In addition to that, RusHydro shares offer a stable dividend stream, making them an appealing portfolio investment. Based on the current share price, we estimate RusHydro's dividend yield over 2023-25 at 9-11%, though we see upside.
The London Metal Exchange (LME) has suspended deliveries of Norilsk Nickel’s nickel deliveries to two British warehouses, S&P Global reported on August 18. The London Metal Exchange has suspended placing Russian-origin nickel on warrant in its warehouses in the UK unless exported from Russia prior to 20 July 2022. The exchange took such a measure following by the British government placed 35% duties on imports of Russian nickel, the agency noted.
Russian copper and aluminium consumption to be down 2x y/y in 2022 – RBC, citing the strategy developed by Minpromtorg. The copper demand collapsed to 220-250kt, while aluminium one – to 720-760kt this year. Although, companies could replace such a decline by an increase in exports as the metals are not sanctioned, the ministry expects.
The net profit of Russian aluminium giant Rusal fell by 16.7% on the year to $1.680bn in January–June, the company said in a statement on August 12, reports Prime. The adjusted net profit increased to $689mn from $679mn, and EBITDA was up 37.4% to $1.807bn. Revenue grew by 31.3% to $7.513bn. Rusal’s business has been booming as aluminium has not been included in the Western sanctions regime on Russia. Rusal’s aluminium output was up by 1.2% on the year to 1.891mn tonnes in the first half of this year, while sales were down by 11.8% to 1.763mn tonnes, according to the company’s statement. Alumina production shrank by 19.6% to 3.300mn tonnes, and the output of bauxites decreased by 11.7% to 6.740mn tonnes.
Raspadskaya held a conference call on 1H22 IFRS release on August 11. The company anticipates coal production to reach 23mt this year, adding it has not yet faced substantial issues with equipment, while coal concentrate sales may decrease amid sanctions restrictions and changes to logistics. Meanwhile, concentrate yield may rise vs 1H22 due to a decrease in ash content. Finally, the management still sees spin off from EVRAZ as attractive, though it is not technically possible at this stage.
9.2.15 Transport corporate news
The largest cargo air group "Volga-Dnepr" will reduce almost all pilots flying on Boeing aircraft, RBC learned. It can be more than 200 employees. The group's business was directed to the global market, but with the start of the special operation, its activities were significantly reduced due to numerous foreign sanctions. The management of Volga-Dnepr is looking for ways to save the company.
160 RUSSIA Country Report September 2022 www.intellinews.com