Page 174 - RusRPTJan23

supplies, Kommersant reports. UC Rusal should document that it did not supply alumina produced in Australia to Russia and did not pay taxes in Russia on profits from the sale of Australian aluminum raw materials in order to challenge the transfer of its 20% in Queensland Alumina (QAL) to Rio Tinto. The Australian court also requested documents on the connection of the aluminum company not only with the Russian budget, but also with businessmen under restrictions. The documents are being requested as part of a lawsuit by the Australian subsidiary of UC Rusal Alumina & Bauxite Company (ABC), which owned 20% of QAL, against Rio Tinto, which had the remaining 80% of the company's shares.
9.2.15 Transport corporate news
Railway freight turnover declined 2.2% in November after a 3.6% decline in October. So, railway statistics data indicate that volumes continue their decline. Meanwhile gondola lease rates stabilized and even went a notch up in November, as per Rail Commerce index. Globaltrans – likely positive FCF despite lower volumes. Declining volumes mean shrinking market, which is negative for Globaltrans. The company publishes its financials twice a year, hence we use these open monthly statistics to gauge the railway freight loading and turnover. The takeaway from the stabilizing gondola lease rate is quite reassuring, however if volumes continue their decline, lease rates may start declining again. Having said that, Globaltrans is likely posting positive FCF in the meantime.
9.2.16 Other sector corporate news
Sistema released 3Q22 IFRS results on December 15. The numbers were mixed, negatively affected by the weak results at Segezha and Steppe.
• _Consolidated revenue grew 9% y/y to Rb240bn, adj. EBITDA declined 9% y/y to Rb70bn (29% margin). Adj. net income stood at Rb28bn (12% margin) - we believe, includes some significant positive non-cash revaluation, but the company did not disclose the details.
• _Public assets earlier reported relatively weak results: MTS (revenue +1% y/y, EBITDA -2%), Segezha (-6%, -75% – stronger ruble, export’s reorientation towards Eastern markets, higher logistics costs).
• _Among non-public assets, agro company Steppe posted weak results (revenue -9%, EBITDA -30%) – despite an increase in harvest y/y and due to the company delaying sales of crops until later periods.
• _Healthcare and pharma businesses delivered good revenue growth, but flattish EBITDA: Medsi’s revenue +24%, EBITDA -2% (clinics opened supporting revenue, but temporarily affecting margin); Binnopharm’s +11% and -0.3% respectively (the latter due to increased cost of production, sales and marketing costs).
Sistema has seen several technical factors that had meaningful positive impact on its results in 3Q22: consolidation of Etalon from 4 May 2022 (the scale of the impact was not disclosed) and no longer recognized Ozon losses in Sistema EBITDA (positive 6pp
174 RUSSIA Country Report January 2023 www.intellinews.com