Reports » Russia

Russian stock market daily morning report (September 03, 2012, Monday)

Contributed by Veles Capital

Today the U.S. markets will be closed due to the Labor Day celebration. Trade in Asia is in the “green zone”, futures for the oil is reducing. The Russian market evidently opens neutrally and the players’ activity is likely low again.

Main events

The results of OGK-1 and OGK-3 by IAS for 2012.

We expect that in 2H 2012 the results of the companies will be slightly better at the expense of the improvement of price conjuncture at the free market of power energy. Nevertheless, we do not expect that the share of Inter RAO UES will be recovering faster than the market. Besides, this Fall Inter RAO plans purchasing the power station “Trakya Elektrik” in Turkey. The players are usually negative about the news on the plans of foreign purchases of Inter RAO.

Mosenergo: IAS results for 1H 2012.

Results of the company for 1H 2012 were expected. We assume they improve in 2H 2012 due to the improvement of the situation at the free market of power energy, however, the quotes of the company will still be pressed by the news on the plans of co-financing of the investment program of the other subsidiary of the GEH – OGK-2, which shows weak results after joining with OGK-6.

TMK: 9% drop of EBITDA.

Net profit of Pipe Metallurgy Company (TMK) by IAS for 1H 2012 reduced 29% y/y from 258 mn USD in 1H 2011 to 182 mn USD, and in 2Q 2012 profit of the company formed 76 mn USD (27.6% reduction q/q). In 2Q 2012 the net profit was affected negatively by the loss from currency exchange in the volume of 26 mn USD.

News briefly

Energy: Irkutskenergo gained profit in 1H 2012 in the volume of 6.37 bn RUR.