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Unipro: 1H 2019 IFRS preview

Unipro: 1H 2019 IFRS preview

 Unipro will present its 1H 2019 IFRS financials on Thursday, August 8 - mildly positive

The conference call is scheduled at 1:00 pm MSK, financial data will be disclosed prior to the call.

The company has already presented its operating results and RAS financials.

We expect 1H 2019 results to come out strong due to electric energy price growth at the one-day-ahead market and a significant rise of output. Output grew by 11.9% YoY due to greater load of stations on behalf of the System Operator and reduced production by HEPS (that was especially expressive on the price zone II). At that, output at Berezovskaya GRES totaled the remarkable 80% YoY in 2Q 2019.

In addition, the financial estimates should benefit from the electric energy price growth at the one-day-ahead market, which totaled 9.5% average and over 15% YoY in the price zone II.

Ultimately, we expect EBITDA to rise 17.3% YoY and the net profit to rise 31.1%.

At large, 2019 is quite successful for the company as after the strong results for 1Q 2019, there were messages in mass media that Unipro and RusAl were negotiating terms of a peaceful agreement. Despite the fact that Unipro will likely be forced to conduct certain payments to RusAl, the DPM contracts are to be preserved, allowing to guarantee payments on them in the future and to keep the dividend payments high. According to the new dividend policy, the dividend payments are to be at RUB 20 bn p.a. starting from 2020, providing for a 12% DY.


We are interested in getting some new information in course of the conference call about the progress of recovering the damaged unit at Berezovskaya GRES (which was previously scheduled for commissioning in December of 2019) and about the progress in talks with RusAl.




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12, Krasnopresnenskaya quay
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World Trade Center-II


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