18:23Norilsk Nickel reports poor financials for 1H 2008
Norilsk Nickel reported its financial performance for 1H 2008. The financial statement reveals a downturn in the company’s profit margins against a rise in its expenditures. We are downbeat on the posted financial results, which are indicative of deteriorating business conditions. According to our estimates, the company may fare even worse in 2H 2008, as prices on copper, palladium and platinum, whose sales brought the group roughly 45% of its 1H total revenue, are in decline.
11:05OGK-3 to buy into non-core assets
The OGK-3 is to buy another set of non-core assets, following its BoD’s decision. The deal benefits Interros, while encroaching on the interests of minority OGK-3 shareholders. It is highly likely that the acquisition of new assets will erode the genco’s shareholder value.
10:59Aeroflot releases negative 1H 2008 financials
The Aeroflot airline has released its consolidated financials for 1H 2008. The statement reveals substantial growth in the company’s expenses and a resultant decline in its profit margins. The rise in fuel expenses was anticipated, while considerable growth in expenditures on payroll and technical maintenance has come as an unpleasant surprise. Aeroflot will likely remain under pressure from high spending and may also suffer from higher prices of credit resources, but Aeroflot is the only company in Russia, which can upgrade its aircraft fleet. It will help Aeroflot to remain the market leader in long-term period.
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