InterRao Company News - Strategy draft implies non-organic growth, same dividends
According to Kommersant, the draft of Inter RAOs strategy (which has not been approved yet) focuses on the non-organic growth from the stipulated RUB 142 bn in EBITDA in 2019 (RUB 133 bn by our estimates adjusted for lease payments) to RUB 210 bn in 2025e and RUB 320 bn in 2030e via M&A, new generating capacity construction (with localised turbines, the auction for 2026-28e is expected this year) and modernisation, both with guaranteed returns. For that purpose, the company is ready to use up to RUB 500 bn by 2025e and up to RUB 1,000 bn by 2030e, which could trigger the repricing of the current cash pile and be positive for the stock. The details of possible M&A investments are not listed but it could include the Kaliningrad assets and the 2.5 GW capacities for Rosnefts Vostok Oil (both of which could cost up to RUB 250-300 bn if the latter is paid for by Inter RAO), let alone the gas turbine localisation project with GE.Inter RAO UES PJSC is a functioning operator of electricity exports and imports in the territory of Russia. Co. represents the interests of two Russian power sector participants: RAO UES of Russia and Rosenergoatom concern, which possess 60 and 40% of the shares respectively. Co. is engaged in arranging transboundary electricity supplies, to provide both domestic and foreign consumers with electric power. Co. is also engaged in pursuing effective investment activities. Co. is developing several areas of activity, including: electric power export and import supplies; electricity sales in home and foreign markets; investment activities; and foreign asset management.
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