Велес Капитал ИК

investment company

Inter RAO

IFRS 9M19 preview

November 13, 2019

Inter RAO will present its IFRS results on November 15 – NEUTRAL

Conference call is scheduled 12:00 pm MSK on that day.

We expect traditionally strong results showing EBITDA up by 18.2% and the net profit rising 13.8%.

According to our calculations, the Distribution segment (share in output rose 4.1% YoY) and Trading segment made the major input in 3Q 2019 due to rising export deliveries volume. The principal segment – Generation – provided a mildly positive input as well due to output rising 1.9% in RF.

Conference call. We do not expect the management to share any information on its strategic plans after the 9M results are presented. Two important dates more are yet to come: Investor Day on December 2 and the 2019 FY results (February-March 2020). Most likely, the mid-term and long-term plans of the management might be partly presented than. Nevertheless, the management might disclose details on DPM-2 projects and provide benchmarks on the 2019 estimates.

We assume that the market will show a restrained response to the results of Inter RAO as the market participants are focused on M&A projects of the company and the possible rise of the payout ratio in the mid-term prospect.

Given analytic materials of Veles Capital can only be used in information purposes. The company does not guarantee completeness of given information and its reliability, as well as it is not responsible for any straight or consequential loss resulting from a non-purpose use. Given document cannot be considered as the reason for buying or selling either, one or another shares.

All rights on this bill belong to Veles Capital. Reproduction and/or spreading of the analytic materials Veles Capital cannot take place without a company’s authorization. © Veles Capital 2019

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