Page 91 - RusRPTFeb19

Globaltrans
GLTR LI
$8.7/GDR 13%
This year should be successful for the company, because the deficit of gondola cars on the rail network has led to rising tariffs, which have already achieved RUB1,500 per rail car per day. As a result, we see upside risk to our earnings estimates. Additionally, the company may pay interim dividends for 1H17, while the annual dividend yield is close to
8.3.2 Dividends dynamics
Gazprom energoholding – could pay out at least 26% of RAS net income in dividends for 2018. Interfax reports, citing the CEO of Gazprom energoholding, Denis Fedorov, that the dividends for GEH’s subsidiaries (Mosenergo, OGK2 and TGK1) for 2018 could be not less than 26% of RAS net income. According to him, the final decision is to be taken by Gazprom. At the same time, the manager highlighted that the company understood the need to pay significant dividends, but that there was some debt and there needed to be a balance between debt repayments and dividend payments. Moreover, Fedorov noted that the company was willing to take an active part in DPM-2 and thus there would be a need to finance these investments as well. Last year, OGK2 and TGK1 reported a RAS bottom line 8% below the IFRS figure, while Mosenergo’s net profit under RAS was reported 2% higher. Applying a 26% payout to our forecast of IFRS-based net income for 2018F implies dividend yields of 6.3% for Mosenergo, 5.3% for OGK2 and 7.7% for TGK1 (to the current share price). Except for TGK1, this is below the NTM dividend yield average for MSCI Russia constituents of 7.2%.
One of Russia’s largest railway operators Globaltrans confirmed plans to pay RUB16bn ($241mn) in 2018 dividends, the company said on January 16 in a statement quoting CEO Valery Shpakov and cited by Prime. In August 2018, Globaltrans said that favourable market conditions allow the company to pay about RUB16bn in dividends for the year, including interim and final dividends. It also raised spending on new rolling stock last year.
8.3.3 ECM news
Russia’s internet giant Yandex says it will IPO its Yandex.Taxi service
sometime in the next two years, the operating and financial director of Yandex Greg Abovsky told RIA Novosti on the sidelines of the World Economic Forum on January 25. “We have said in the past that Yandex.Taxi may and will soon become a public company. I do not know whether this will happen in 2019 or 2020, but it will happen,” said Abovskiy. Previously plans to hold IPO following the merger with Uber were announced for the first half of 2019. Listing will be held, most likely in the United States, Abovskii told Bloomberg. “There are no specific plans for IPOs of other companies besides Yandex. Taxi,” the Yandex director added in an interview with RIA Novosti. Yandex.Taxi and Uber have combined the businesses in Russia, Kazakhstan, Belarus, Azerbaijan, Armenia and Georgia, investing in the capital of the new company $225mn and $100mn respectively. The deal was closed in February last year and 59.3% of the joint venture belongs to Yandex, 36.9% belong to Uber, and another 3.8% belong to employees.
8.4 International ratings
International rating agency S&P Global Ratings (S&P) has affirmed Russia's foreign currency long- and short-term sovereign credit ratings at BBB-/A-3 and the local currency long- and short-term sovereign credit
91 RUSSIA Country Report February 2019 www.intellinews.com