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Reports Russia

Russian stock market daily morning report (August 27, 2014, Wednesday)

August 27, 2014, Wednesday, 09:15 GMT | 04:15 EST | 13:45 IST | 16:15 SGT
Contributed by Veles Capital


We assume that the dynamics of the Russian market on Wednesday open would be mixed but trades get mostly green at the back of the agreements reached resulting from the negotiations in Minsk between the heads of Russia and Ukraine. As it had been announced, consulting would be resumed September 6 on the energy issues between Russian Federation, Ukraine and EU. Additionally an agreement had been reached to consult at the experts’ level on the matters of economic consequences of establishing the free trade zone between Ukraine and EU.


Main events

Financial results for 1H 2014 are to be posted.

The consolidated financial results of Inter RAO for 1H 2014 will be released today. We expect to observe adding in the segment of the Russian generation at the expense of introduction of new capacities within the frames of PDC, despite the cut of power energy output for 1H 2014 by 4.9%, and also in the retail segment at the expense of increased clients’ base. Results of the trade segment would be significantly below the previous year’s level due to drop of the export and import selling by 34.6% and 27.8% respectively.

Rusal: EBITDA margin for 1H 2014 grew 0.9 pps to 9%.

Output of aluminum dropped 10.8% yoy to 1,783 K tons resulting from execution of the program on cutting capacities at the least efficient plants. Sales dropped 15.7% yoy to 4,384 mn USD. Corrected EBITDA dropped 6.4% yoy to 393 mn USD, however, EBITDA margin grew 0.9 pps to 9.0%.