Page 125 - RusRPTFeb19

UFG, ru-Net. Sistema VC has a capital of RUB10bn ($161mn). In February 2017 Russia's largest bank Sberbank and Maginvest of Viktor Rashnikov invested RUB2bn in the VC in exchange for 205 stake.
Russian telecoms giant Rostelecom is in talks to buy one of Russia’s leading data storage companies DataLine, as telecoms companies scramble to get into the storage business for both commercial and political reasons.
9.2.10 Utilities corporate news
RusHydro has released its 9mo18 IFRS results, which displayed strong underlying profitability. YTD reported net profit of RUB 43bn is sufficient to deliver a 10% dividend yield to shareholders at a 50% payout policy. However, the 4Q18 outlook, with its traditional write-offs, remains tricky, while the 2019 outlook, with almost certain write-offs on the back of Russian Far East Federal Projects being commissioned, will mark the medium-term profitability trough for the stock, in our view. The company’s 9mo18 results were supported by upbeat production dynamics. Total revenues, including subsidies, printed at RUB 288mn, up 7% y/y and in line with our expectations. Given a fuel cost increase, adjusted EBITDA was RUB 81mn, a 13% y/y increase (2% below our estimates) but is still below the growth rates reported for 6mo18. Along with the forward revaluation, the bottom line reached RUB 43mn, a 40% y/y increase – the brightest spot of the company's investment story. Already this year, the reported net profit is sufficient to deliver a 10% dividend yield, which would beat our FY18 expectations. However, this is partially due to the significant write-offs we anticipate leading to a negative 4Q18 bottom line, on our numbers. Net debt at the end of 3Q18 was RUB 104.5bn; capex accounted for RUB 45.2bn in 9mo18.
Russian energy holding En+ names three Americans who may get some of oligarch Deripaska voting rights on board of directors. The energy- metallurgical group En+ of sanctioned oligarch and Kremlin insider Oleg Deripaska named three American national that may gain some of the board of directors voting rights as part of deal imposed on the company by the US Treasury Department (USTD), the Vedomosti reported on January 18. EN+, which is one of three of Deripaska’s listed in the April 6 round of sanctions, confirmed Deripaska will reduce his shareholding to below a controlling stake and hand the control of some of his shares to independent outsiders. EN+ named David Nauer, David Crane and Dee JJ Baker as possible independent directors who will receive the right to vote on the shares transferred by Deripaska under the USTD deal to lift the sanctions on the company, En+ said in a statement. All three are Americans. Nauer works as managing director of the German division of Cerberus Capital Management, an investment company, which he joined in 2003. Crane is the senior operations manager of Pegasus Capital Advisors. Baker is on the boards of Cumulus Media, Enduro Resource and Toshiba Nuclear Energy. Investors took the news of a possible resolution positively and EN+ stock jumped 9.4% on the news, over the previous day’s close. The shares of UC Rusal, another of Deripaska’s companies named in the April sanctions, also rallied. In mid-December, the American USTD announced its intention to lift sanctions on En+ and the aluminum producer UC Rusal under its control, subject to Deripaska’s agreement to give up control of his companies. Under the terms of the deal, Deripaska’s En+ share falls from about 70% to 44.95%, VTB (the USTD named the bank one of the possible recipients of the businessman’s package)
125 RUSSIA Country Report February 2019 www.intellinews.com