Page 139 - RusRPTDec22

9.2.10 Utilities & Renewables corporate news
Rosatom is successfully implementing 23 international projects, First Deputy CEO of the Russian state nuclear corporation Kirill Komarov said at the Atomexpo Forum on November 23. "Twenty three projects are being implemented out of twenty four projects we have for the Russian design as of the year start. We stopped building the Hanhikivi nuclear power plant due to the arbitrary decision of the Finnish customer only. All other our projects continue. Furthermore, we receive the feedback from customers to expedite project execution as much as possible," Komarov said.
Unipro 3Q22 results were very solid in October . Management negotiates with controlling shareholder Uniper on dividends, no decision has been made. Controlling shareholder keeps plans for divestment, no decision yet. Financially, the company is doing good and raised its FY22 EBITDA guidance to Rb38-40bn (up from 34-38bn previously).BSC GM kees its Buy recommendation on Unipro, as company benefits from the existing wholesale power market framework, that includes steep capacity tariff indexation and still relatively resilient spot price performance. The management however indicated that they expect some worsening of the market conditions, in the form of power demand deceleration and pressure on spot pricing. We think that capacity indexation by 15% from 1 Jan 2023 and gas tariff hikes from 1 Dec 2022 will enable efficient gencos like Unipro to keep earnings. Although demand weakness and spot price declines is clearly a risk factor for our model and projections.
Rosseti’s investment spending in 2022 could amount to RB425bn (or Rb354bn ex VAT), Rosseti said on October 12. Rosseti/FSK consolidated spending could be at around Rb425bn in 2022, or up over 30% y/y. Bankers see investments as a concern, as usually they do not carry an explicit economic return. We are concerned most of all by Rosseti/FSK holding turning FCF negative on the back of significant rise in CapEx spending. If CapEx does not subside in future years, it may carry a significant risk of financial imbalances for the power grids. We keep our Sell on FSK and Hold on Rosseti in the meantime.
Sistema Holding has halted negotiations on acquisition of Russia-based assets of Fortum/Uniper, Founder of the corporation Vladimir Evtushenkov told reporters Fortum informed earlier about the exit from the Russian market. A potential sale of company’s assets and assets of Uniper where Fortum holds 78% in Russia is viewed as a priority path to implement this decision.
RusHydro released disappointing 3Q22 IFRS results. We link the decline mainly to fuel cost inflation that were up 55%, as per financials
• _EBITDA plunged 45% y/y to RUB15.4bn.
• _Adjusted net profit declined a whopping 82% to just RUB2.2bn.
• _EBITDA loss of the Far East unit climbed to RUB6.8bn in 3Q22, up from just RUB0.6bn in
139 RUSSIA Country Report December 2022 www.intellinews.com