Велес Капитал ИК

investment company

Unipro

IFRS results and conference call

November 12, 2019

Unipro presented its 9M 2019 results and hosted a conference call. Mildly positive.

Results appeared to underperform our targets slightly; yet at large things look good: sales rose 8% YoY, EBITDA – 12% and the net profit was 20% up.

Electricity price growth at the day-ahead market and the rise in output volume YoY were the major positive factors.

No surprises at the conference call.

Management estimated the spending for the DPM-2 at RUB 10 bn up until 2025.

Recovery of the damaged unit still requires RUB 8 bn to be spent out of the RUB 40 bn total.

EBITDA’19 was reiterated at RUB 28-30 bn.

The 3rd unit of BGRES has been confirmed to be commissioned in 1Q 2020. The management expects the unit to add up to RUB 1.4 bn per month to the EBITDA estimate.

The management confirmed the plan of a RUB 20 bn payment in course of 2020.

We reiterate our price target at RUB 2.9 per share of Unipro and the recommendation HOLD concluding from the results and the conference call. Uncertainty regarding Fortum-Uniper takeover process still is the only negative matter to restrain Unipro quotes growth. The situation is to be solved in early 2020.

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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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