1Q 2019 results wsere affected by a one-off effect of assets exchange. Sales were 5.2% down to RUB 57.5 bn; EBITDA grew 4.8% and the net profit was 35% up to RUB 27.4 bn. Assets exchange with DVUEK, generating a RUB 10.4 bn gain, resulted in the profit hike. Without this one-off item, the profit was up by approximately 10%.
Sales decresed due to a decline in the “Electricity sales” line of the subsidiary – “Mobile GTES”, along with the zero sales generated by the construction services. Core sales from electric energy transfer increased by 6.1%.
A decision of the BoD on dividends is the nearest trigger for the company witch will be held on 24.05.2019. The decision will be disclosed until the end of the current month. We expect a DPS of RUB 0.016 with a 9.2% DY.