Drukāt |
Atpakaļ

Norvik Research 20.04.2017

20/04/2017 17:02

Global developments

The dollar is down while global stocks are without significant changes before the start of the French elections. The dollar index is down 0.1%, US 10Y Treasury yields are up 1 bp at 2.23%. S&P futures are 0.2% higher while Eurostoxx 600 is just marginally up.

Oil prices rebounded today after yesterday’s slump as Saudi Arabia signalled that OPEC-led supply cuts may be extended. Brent prices are 1.0% higher today at $53.5/bbl.

Russia and CIS area developments and market colour

Weekly inflation in Russia came out at 0.1%. In yearly terms, inflation declined to 4.2% from 4.3% in the previous week.

CBR will hold a monetary policy meeting next week. CBR’s Governor Nabiullina said that a rate cut of either 25 bps or 50 bps will be discussed at the meeting.

Corporate news

Russian steel producer, Severstal, has published quarterly financial results. Revenue rose 61% compared to 1Q 2016 reaching $1.767 billion. EBITDA increased more than twofold to $578 million, with EBITDA margin at 32.7% (24.9% in 1Q 2016). Company‘s net income also went up compared to 1Q 2016 and stood at $359 million. Concerning operational results, steel production was slightly higher at 11.63 million tons (+2% YoY).

As of 1Q 2017, total debt increased 35.5% QoQ and currently stands at $2.727 billion, due to the issuance of $250 million of convertible debt and $500 million of eurobonds. Net debt is slightly lower at $788 million (-8.3% QoQ). Net debt/EBITDA is unchanged at 0.4x.

The company has a solid liquidity position with cash and equivalents standing at $1.939 billion and open credit lines at $675 million, which is more than enough to cover the short-term debt of $1,195 billion.

The company’s management expects that the steel and basic materials market will continue stabilizing in 2017. This forecast is based on growing world economy (3.5% YoY, according to the IMF), which will lead to a higher demand for steel. China, the main driver for growth in demand, will cut excess steel capacity. Steel demand in Russia is also expected to increase, as economic growth picks up to around 2.0% this year.

For more information on the research, please click here.

Norvik Banka Research
+44 207 259 8854
research@norvikuk.com

Brokerage department
+371 6701 1561
broker@norvik.eu

Disclaimer
This report is prepared by Norvik Banka UK Limited, of 46-48 Grosvenor Gardens, London, SW1W 0EB, United Kingdom (hereinafter referred to as the Company) as a marketing communication for information purposes only. Neither the information nor any opinion contained in this report (notwithstanding the source) is intended to be, or should be construed as an offer, a recommendation, an advice or an invitation to make an offer, to buy or sell any financial instrument. Information contained in this report constitutes neither investment nor tax advice and it does not take into account the specific investment objectives, risk appetite and financial situation of anyone who may receive this report. Investors should seek their own advice regarding the appropriateness of investing in any financial instrument discussed in this report and carefully evaluate the risks and eventual losses that are related to the investment services and its compliance with their investment goals.
Investors should note that any income derived from investments in financial instruments may fluctuate and that the price or value of securities and investments may rise or fall. Accordingly, investors may lose their investment or receive back less than originally invested. Past performance and income is not a guide to future performance and income. Foreign currency exchange rates may adversely affect the value, price or income of any security or related investment mentioned in this report. Investing in the Russian or CIS economies and securities involves a high degree of risk and requires appropriate knowledge and experience.
The information contained in this report have been obtained from such public sources what are believed to be reliable, but no representation or warranty is made by the Company with regard to accuracy. Therefore the information contained herein is subject to change without prior notice.
This report should not be viewed as the only source of information, and neither the Company, nor the companies within the NORVIK group and/or any affiliates or employees thereof accept any responsibility or liability whatsoever for any direct or indirect damage arising out of or in any way connected with the use of information contained herein, nor for its authenticity.
This report may not be distributed, copied, reproduced or changed without prior written consent from the Company. Further information, which for the avoidance of doubt cannot be treated as the recommendations and/or advice either, may be obtained from the Company upon request.
This report has not been prepared on the basis of the requirements of regulatory provisions promoting independence of investment research and is not subject to the prohibition from making transactions before disseminating investment research.
Norvik Banka Research is a Trading Name of Norvik Banka UK Ltd, which is Authorised and Regulated by the Financial Conduct Authority, FRN: 681329. Registered in England and Wales with number 08940522. Registered Office: 46/48 Grosvenor Gardens 1st Floor, London, SW1W 0EB.

Disclaimer
The information contained in this communication from the sender is confidential. It is intended solely for use by the recipient and others authorized to receive it. If you are not the recipient, you are hereby notified that any disclosure, copying, distribution or taking action in relation of the contents of this information is strictly prohibited and may be unlawful.

This email has been scanned for viruses and malware, and may have been automatically archived by Mimecast Ltd, an innovator in Software as a Service (SaaS) for business. Providing a safer and more useful place for your human generated data. Specializing in; Security, archiving and compliance. To find out more Click Here.

Pēdējās ziņas