OGK-2 (MOEX: OGKB) - Russian generating company with installed capacity 17,608 GW. Main activities: production and sale of electrical and thermal energy.
Business structure
OGK-2 divided its business into 12 branches, whose names coincide with the company's facilities operating there:
- Surgutskaya GRES-1.
- Ryazanskaya GRES.
- Stavropolskaya GRES.
- Kirishskaya GRES.
- Troitskaya GRES.
- Novocherkasskaya GRES.
- Cherepovets GRES.
- Serovskaya GRES.
- Pskov State District Power Plant.
- Adlerskaya TPP.
- Grozny TPP.
- Svobodnenskaya TPP.
Based on the natural-territorial division of Russia, OGK-2 power plants operate in five zones:
- Northwest, three objects: Pskov State District Power Plant, Cherepovets GRES, Kirishskaya GRES.
- Centre, one facility - Ryazanskaya GRES.
- South of Russia, four objects: Adlerskaya TPP, Grozny TPP, Novocherkasskaya GRES, Stavropolskaya GRES.
- Ural, three objects: Troitskaya GRES, Serovskaya GRES, Surgutskaya GRES-1.
- Far East, one facility — Svobodnenskaya TPP.
General trends in the sector: transition from dirty coal energy to green, gas and RES. Therefore, OGK-2 is gradually abandoning its coal plants, selling them to competitors. At the beginning 2020 of the Siberian Generating Company sold Krasnoyarskaya GRES-2 for 10 billion rubles. Despite these actions, coal still occupies a large share in OGK-2's fuel mix. As of the end 2 quarter 2021 of the year, gas takes about 79%, coal - 21%, fuel oil - less 0,1%.
Types of fuel used OGK-2, thousand tons
| Gas | Coal | Fuel oil | |
|---|---|---|---|
| 2018 | 14 099 | 5381 | 36 |
| 2019 | 13 295 | 4565 | 23 |
| 2020 | 11 261 | 3301 | 19 |
| 1п2021 | 5910 | 1574 | 9 |
Share capital
The authorized capital of OGK-2 consists of 110 441 160 870 ordinary shares with par value 0,3627 R for paper.
At the same time, Gazprom Energoholding is actually the main shareholder., to which belongs 99% "Centrenergoholding" and to which "Mosenergo" transferred its stake in OGK-2 in the amount of 3,88% in July 2021 of the year, the transaction amount was 3,41 billion rubles, or 0,79 R for paper.
Shareholder structure
| "Centerenergoholding" | 73,42% |
| Gazprom energoholding | 3,65% |
| Mosenergo | 3,88% |
| Free-float | 19,05% |
73,42%
Dividends
OGK-2 starting from 2019 year switched to distribution 50% net income under IFRS between shareholders. Dividend is paid once a year, during the first summer months: end of June - beginning of July.
OGK-2 dividend history
| Dividend | Distribution coefficient | Dividend yield | |
|---|---|---|---|
| 2015 | 0,0056 R | 20% net profit under RAS | 2% |
| 2016 | 0,0082 R | 25% net profit under RAS | 2% |
| 2017 | 0,0163 R | 25% net profit under RAS | 4% |
| 2018 | 0,0368 R | 35% net profit under RAS | 6,5% |
| 2019 | 0,0544 R | 50% net income under IFRS | 6,8% |
| 2020 | 0,06 R | 50% net income under IFRS | 7,6% |
Comparison of dividend yield with competitors
| 2018 | 2019 | 2020 | |
|---|---|---|---|
| OGK-2 | 6,5% | 6,8% | 7,6% |
| TGK-1 | 5,8% | 7,8% | 8,7% |
| Mosenergo | 8,3% | 5,3% | 7,6% |
| Enel Russia | 12,4% | 8,2% | 0% |
| Unipro | 8,3% | 7,9% | 8,1% |
| RusHydro | 5,8% | 4,7% | 6,1% |
| Inter RAO | 4,2% | 3,8% | 3,5% |
OGK-2's current operating results
As of 31 December 2020 OGK-2 ranks third in terms of installed capacity, when compared to other generating companies, who work in the same regions, as the company in question.
Installed capacity, GW
| RusHydro | 38 |
| Inter RAO | 28,3 |
| OGK-2 | 17,6 |
| Unipro | 11,2 |
| TGK-1 | 6,9 |
| Enel Russia | 5,6 |
38
Financial results for the last 5 years, billion rubles
| Revenue | EBITDA | Net profit | net debt | |
|---|---|---|---|---|
| 2016 | 134,398 | 18,924 | 3,053 | 62,511 |
| 2017 | 141,308 | 26,817 | 7,201 | 54,194 |
| 2018 | 143,227 | 27,053 | 8,305 | 40,493 |
| 2019 | 134,579 | 31,203 | 12,025 | 52,539 |
| 2020 | 120,687 | 31,569 | 13,265 | 44,935 |
| 1п2021 | 66,488 | 22,294 | 11,32 | 37,948 |
Forecast
OGK-2 associates its future impressive results with the state program CSA-2, during which Russia is modernizing to 2030 whole year 41 GW of thermal power. In return, companies will be guaranteed 14% profitability.
OGK-2 management forecast for 2021 year:
- IN 2021 year the company expects to allocate for dividends 50% net income under IFRS.
- OGK-2 plans to participate in new competitive selection of projects for the modernization of generating equipment.
- EBITDA OGK-2 c 2021 year, according to management estimates, will not be below 2020 of the year. Result 2020 of the year - 31,569 billion rubles.
- The company's capital expenditures 2021 year for technical re-equipment and reconstruction (TPiR) amount to 6,4 billion rubles.
Economic effect of capacity upgrades during peak periods, billion rubles
| Company | EBITDA |
|---|---|
| Inter RAO | 41,9 |
| Mosenergo | 35,3 |
| OGK-2 | 25,5 |
| Enel Russia | 21,9 |
| Unipro | 6,5 |
| TGK-1 | 4,98 |
41,9
Arguments for
DPM. Company before 2022 year will receive increased payments under this program. IN 2023 year ends the period of the CSA for two power units of the Adler TPP, in 2025 year - still 5 objects of OGK-2.
Strong financial results for 1 half a year 2021 of the year. Company performance for the first 6 Months 2021 years were on 10% above last year's data.
Moderate debt burden. As of 31 June 2021 years net debt of OGK-2 — 37,948 billion rubles, a "net debt" / EBITDA» — 1,14.
Arguments against
Dividend yield. The average dividend yield over the past three years has been around 7%. But already this year, OGK-2 can improve this result, if it strikes 2 half a year.
Cash pooling. In the end 2019 Boards of Directors of OGK-2, TGC-1 and Mosenergo decided to join this system, according to which Gazprom can now withdraw money from these companies at any time using loans.
What's the bottom line?
OGK-2 is an interesting investment for at least the next year. Now the company's quotes have corrected well by 17-20% from the highs, and its financial results following the results 1 Half 2021 increased compared to last year. Multidirectional movement - a simultaneous increase in net profit and a drop in capitalization - create a unique entry point into the asset.
