WOOD Flash – Rosneft: 2Q18 IFRS results - stronger FCF and adjusted earnings, good cost control and deleveraging
Rosneft has reported stronger 2Q18 results than expected, with a particularly strong performance in cost management (lifting costs increased by just 3.8% yoy). Moreover, the company delivered a turnaround in FCF and started deleveraging its balance sheet: the two key ingredients for a future rerating, in our view, and the reasons behind our BUY rating. We reiterate our USD 8.5/GDR PT and BUY recommendation for Rosneft, which is one of our top picks in the sector. We see these results as an important step towards rebuilding market trust and expect a strong share price performance going forward.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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