Tatneft 4Q 19 - Weak FCF leads to downside risk for final dividends
Today, Tatneft published its 4Q 19 results, which came in almost in line on EBITDA compared to both consensus and our estimates, However, the companys net income was significantly lower than expectations on the back of considerable impairment losses of PPE and financial assets (USD 569 mn). Moreover, net operating cash flow also came in lower than expected due to the negative effect from banking operating activities of USD 290 mn. At the same time, capital expenditures came in close to our forecasts, although the actual figure was much lower than the management guidance given after 3Q 19 (USD 543 mn vs USD 730 mn). Overall, free cash flow came in weaker than projected on lower NOCF and accounted for USD 148 mn. Based on 100% FCF distribution (excl. changes in WC) the final DPS could be RUB 3.5/share. However, previously Tatneft paid even more than 100% of its FCF, and likely it will be the case for the final 2019 DPS. We estimate the final DPS in a range of RUB 7.3 - 12.7/share.Tatneft PJSC and its subsidiaries are engaged in crude oil exploration, development and production principally in the Republic of Tatarstan, Russia. Co. is a holding structure, which incorporates oil and gas production boards, crude oil and gas refining companies, as well as enterprises and servicing works selling the crude oil and also the products of crude oil and gas refining and petrochemical products. In addition to this, Co. is also participating in the banking and insurance activities. Co.'s operations are divided into the following main segments: Exploration and Production; Refining and Marketing; and Petrochemicals.
The Institutional Equity Research team of Raiffeisen Bank International AG covers 85 stocks from Austria, Central & Eastern Europe with sell-side research and thus levers our local broker status with excellent company relationships. For corporates in Austria, CEE and Western Europe, we offer co-sponsored research, which includes research coverage and marketing activities to investors. Additionally, through our Spotlight Research product we also shed light on leading European small and micro-caps, seeking greater visibility with investors.
The Institutional Equity Research team consists of roughly 15 analysts, both in Vienna and the CEE countries. Our analysts provide long-standing sector expertise in tandem with profound local market know how and a sectoral approach across the entire region.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.