Page 130 - RusRPTNov22

9.2.8 Telecoms corporate news
9.2.9 Tourism corporate news
9.2.10 Utilities & Renewables corporate news
Russian mobile operator VimpelCom, working under the Beeline brand, which is now almost fully owned by Amsterdam-based VEON, may become a company with an entirely local capital, daily Izvestiya reported on October 13 citing three sources close to the operator and its partners. These are just plans of the shareholders, one of the sources said.
Italy’s Enel has closed the sale of its 56.43% stake in power producer Enel Russia to oil major Lukoil and investment fund Gazprombank-Frezia for a total of 137mn euros, the company said in a statement on Wednesday. Enel sold all of its Russian power generation assets, and Lukoil acquired the stake of 26.93% in Enel Russia, while Gazprombank-Frezia bought 29.5%. Enel signed the deal to sell its stake in Enel Russia to Lukoil and Gazprombank-Frezia in June, but it was blocked on August 5 by President Vladimir Putin’s decree that prohibited deals with stakes of Western investors in all strategic firms in the fuel and energy, and financial sectors until the end of the year. Such a deal can go through only at a special presidential permit. Putin issued a permit for the deal at the end of September.
RusHydro released RAS results for 3Q22, indicating that poor hydro output in Siberia offset the rise in capacity tariffs, leading to a slight decline in earnings. The decline in earnings is not huge, but still risks for dividends. While the decline is not catastrophic, we remind of losses at the Far East unit that were previously compensated by hydro earnings (operate at the parent company). Hydro stations, by its nature, are profit-making due to low costs (EBITDA margin well above 60%) and still earn a lot of money. Nevertheless, the decline in 3Q net profit presents a risk to the size of RusHydro’s dividends for the year.
Inter RAO acquired two Russia-based Siemens Energy assets, namely Siemens Energy share in the JV with Power Machines and power transformer producer. The deals are worth EUR25mn, according to Interfax sources, hence largely immaterial given the size of Inter RAO. The company increased its expertise in power engineering with acquisitions. There are not many details about the transaction, synergy and ability of Inter RAO to continue production of power turbines at one of the assets. The size of the transaction is relatively small, given the size of Inter RAO. We think that acquisitions in core generation and supply areas are more relevant for Inter RAO business profile.
130 RUSSIA Country Report November 2022 www.intellinews.com