Загрузка...

Analytics

04.02.2018:38

Trans-oil (Aragvi Finance International): proven progress in operating profile

On January 31, Trans-oil (Aragvi Finance International) released strong trading update for 6 months ended 31.12.2019. Total sales reached $464 mln, +65% yoy. Revenue added 47% qoq, making up $276 mln. Despite Origination and Marketing segment (commodities trading unit) continued to demonstrate strong performance (+18% qoq in terms of revenue) and comprised the bulk of consolidated turnover (85% for 6M2020), the most noticeable progress was seen in Crushing and Refining division, that underperformed earlier due to capacity upgrade and unfavorable price environment. During October-December 2019 Aragvi set a new production record and crushed 166,000 tonnes of seeds (+388% qoq) that together with the rebound of vegetable oil market led to unprecedented sales surge: $62 mln compared to just $7 mln for July-September 2019.

As for 6M FY2019/2020 Aragvi managed to sell 1.717 mln tonnes of commodities of all types, showing an upside of 73%. This was reached thanks to better crops in Moldova as well as strong marketing programme implementation.

Other changes in company’s operating profile relate to acquisition of 100 new railcars (total fleet now comprises out of 175 units) in late December 2019. The deal will support margins going forward through transportation costs reduction. It will also help to reduce operational risks by decreasing dependency on state-owned railway company.

The company’s only trading eurobond Aragvi 24 (YTM 9.6%) showed negative price dynamics over the last days due to increased market volatility and lower demand for risk. That said we are still positive on the notes assuming them one of the best picks in EM high yield segment. We believe the issue will see price recovery as soon as investor sentiment improves.

Operating Data

Operating Data

Source: Company data, ООО ИнтерИнвест estimates

Aragvi 24 price performance

Aragvi 24 price performance

Source: Bloomberg, ООО ИнтерИнвест

USD/RUB
Created with Highstock 4.2.3
USD/RUB
EUR/RUB
Bitcoin
10:57
Ethereum
168.00
-2.14%
10:57
Ripple
0.25
-1.12%
10:57
IMOEX
2694.23
0.63%
10:57
RTSI
1273.38
0.53%
10:57
FTSE 100
7157.83
0.61%
10:42
DAX
11785.19
0.72%
10:42
Brent
60.25
-0.4%
10:42
NAT GAS
29.15
-0.31%
10:30
WTI
55.80
-0.2%
10:42
GOLD
1537.15
0.27%
17:05

InterInvest LLC delivers financial services on the territory of Russian Federation according to governmental perpetual licenses for carrying out brokerage, dealer and custody activities as well as securities management activities. The government control of the companys activity and protection of its clients interests are performed by Russian Federal Service for the Financial Markets.

Holding of securities and other financial instruments is always connected with risks: the cost of securities and other financial instruments can both be increased or decreased. The services of transactioning with foreign securities are available for persons who are qualified investors according to the current legislation. These services are performed according to limitations applied by the current legislation.

Information-analysis services and materials are provided by InterInvest LLC within the framework of rendering the specified services and these services are not the individual kind of activity. The company reserves the right to refuse in rendering the services for persons who do not meet the conditions imposed for the clients or for those ones with prohibition/restriction to rendering such services according to the current legislation of the Russian Federation or other countries where the operations are performed. Also the limitations can be imposed by InterInvest LLC internal procedures and control.

Copyright ©  Interinvest LLC.  All right reserved.