WOOD Flash – Rosneft: strong 3Q18 results, commitment to cost and capital discipline reiterated
Rosneft has reported strong 3Q18 results, which were slightly ahead of our estimates at the EBITDA level and significantly better in terms of the FCF, albeit due partially to a working capital reversal. The company has guided for about 4% liquids growth next year (which is in line with our current estimate), but has also raised its capex plans for next year, expecting 20-25% yoy growth (higher than our current estimate). Management reiterated its core focus on FCF generation, net debt reduction and production growth, which we see as positive. We see no reason to change our positive stance on Rosneft, as its results underscored the high cash rich nature of the company’s operations, while its commitment to cost and capital discipline was reiterated.
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.
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