Research Notes

• Novorossiysk Marine Shipping Company is the second-biggest tanker operator in Russia after state-run Sovkomflot: Novoship's fleet consists of 57 vessels with aggregate deadweight of over 3 mln tons.

• The company's strong positions on the marine shipments market, above all, tanker shipments; the fleet renewal program; increased competitive ability on the global market and a gradual increase in the aggregate deadweight of Novoship's fleet.

• A merger with Sovkomflot, Russia's largest shipping company, the possibility of which has long been discussed, could drive up the market price of Novoship shares.

• An estimate of the company's fair value based on the discounted cash flow model, as well as a comparison of its performance with those of its peers, showed that the company's shares are substantially undervalued by the market.

Olga Samarets

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