Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

MarketScreener Homepage  >  Equities  >  DUBAI INTERNATIONAL FINANCIAL EXCHANGE LTD.  >  DP World PLC    DPW   AEDFXA0M6V00


News SummaryMost relevantAll newsOfficial PublicationsSector newsAnalyst Recommendations

Rosatom sees Northern Sea Route costs at 735 billion roubles, Russian budget to provide a third

share with twitter share with LinkedIn share with facebook
share via e-mail
06/24/2019 | 09:09am EDT
Alexey Likhachyov, CEO at Rosatom state nuclear company, speaks during an interview with Reuters in St. Petersburg

MOSCOW (Reuters) - Russia's ambitious Northern Sea Route (NSR) requires 735 billion roubles (9 billion pounds) in investments, with the state budget to provide a third and the rest to come from companies and banks, the head of state nuclear firm Rosatom, Alexey Likhachyov, said.

Rosatom, the world's top nuclear company in terms of foreign orders, was selected by the Russian government to operate the NSR - the Arctic route Moscow wants to turn into a new Suez - coordinating development of the project among its users.

This month, Rosatom agreed with the Russian Direct Investment Fund, Nornickel, one of the world's top nickel and palladium producers, and DP World, among leading global port operators, on joint development of the NSR.

The firms have yet to agree on how their NSR partnership will work. DP World wants to operate the ports and nearby infrastructure that Russia plans to build, its chief executive told Reuters.

Likhachyov, whose company will also be responsible for nuclear icebreakers that create "roads" through the thick Arctic ice for ships, said the state budget planned to provide 274 billion roubles for the NSR out of the total investment.

The rest, he said, would come from Rosatom, Rosneft, Novatek, Gazpromneft, Gazprom, Nornickel and other future users of the route, as well as via bank loans.

"As soon as we create commercially attractive cargo shipment, people will be ready to invest in roads, railways, ports and terminals as this will become profitable," Likhachyov said.

Novatek, Russia's biggest private gas producer, is already using the route to ship liquefied natural gas (LNG) to Europe and Asia, saving on costs and making its LNG competitive on the global market.

Gazpromneft, Russia's third-biggest oil producer, is also exporting some of its oil via the NSR.

By 2024, if projects involving LNG, gas condensate, oil, coal, precious metals and other goods are implemented by the Russian companies, cargoes totalling around 80 million tonnes per year will be shipped via the NSR to Europe and Asia.

Likhachyov said Russia needed to develop the NSR in a way that allowed transportation costs to create a competitive environment for goods.

"There is no point for Novatek to increase LNG (production) if it does not fit into the global ... competitive zone, along with (the LNG costs of) the United States and other producers," he said.

Russia aims to grow big in LNG exports, matching volumes produced by Qatar, one of the world's top exporters, mainly thanks to Novatek's new projects.

Likhachyov said that for the NSR to fly, users would need to clinch a deal: "We will guarantee shipment of certain volumes at a certain price and you would guarantee supplies of certain volumes ... This is likely to be a price formula."


The Zvezda shipyard in Russia's far east, with Rosneft among its shareholders, will build a new class of nuclear icebreaker, the Lider, which should be ready by 2026 to break the thick, arctic ice and allow cargo ships to move year-round.

Likhachyov said a single Lider-class vessel would cover Russia's cargo needs but "to compete with Suez", three Liders were needed by 2030-2035 to maintain a speed of 18-20 km per hour and keep shipping costs stable.

"The NSR has to be international. We cannot create such a colossus only to ship hydrocarbons from our north. This is not businesslike ... If China and India will truly decarbonise, cargoes bound for those countries will grow fast."

(Reporting by Katya Golubkova and Gleb Stolyarov; Editing by Dale Hudson)

By Katya Golubkova and Gleb Stolyarov

Stocks mentioned in the article
ChangeLast1st jan.
DP WORLD PLC End-of-day quote.
GAZPROM NEFT' PAO End-of-day quote.
GMK NORIL'SKIY NIKEL' PAO End-of-day quote.
LME NICKEL CASH 3.20% 14685 End-of-day quote.40.66%
NK ROSNEFT' PAO End-of-day quote.
NOVATEK PAO End-of-day quote.
PALLADIUM -1.08% 1505.5 Delayed Quote.20.36%
TOTAL 0.35% 48.2 Real-time Quote.4.37%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on DP WORLD PLC
07/01DP WORLD : Dubai's DP World acquires oil shipping firm Topaz for $1.1B
07/01DP World buys Topaz Energy from StanChart and Renaissance for $1 billion
06/30DP WORLD : in talks to acquire Topaz Energy - statement
06/27DP WORLD : backed Virgin Hyperloop One hits new high
06/25DP WORLD : What is the UAE's game in the Horn of Africa?
06/25DP WORLD : Coupon Payment $1.75bn due 2037
06/24Rosatom sees Northern Sea Route costs at 735 billion roubles, Russian budget ..
06/21DP WORLD : showcases revolutionary High Bay concept at TOC Europe
06/18DP WORLD : TOC Europe 2019 - High Bay Storage could be a solution to container t..
06/16DP WORLD : eyes ports on Russia's emerging arctic sea route
More news
Financials (USD)
Sales 2019 6 534 M
EBIT 2019 1 993 M
Net income 2019 1 303 M
Debt 2019 7 545 M
Yield 2019 2,81%
P/E ratio 2019 10,8x
P/E ratio 2020 10,5x
EV / Sales2019 3,19x
EV / Sales2020 3,01x
Capitalization 13 280 M
Duration : Period :
DP World PLC Technical Analysis Chart | MarketScreener
Full-screen chart
Income Statement Evolution
Mean consensus BUY
Number of Analysts 10
Average target price 24,50  $
Last Close Price 16,16  $
Spread / Highest target 90,0%
Spread / Average Target 51,6%
Spread / Lowest Target 15,7%
EPS Revisions
Sultan Ahmed Sultan bin Sulayem Group Chairman & Chief Executive Officer
Yuvraj Narayan Group Chief Financial Officer & Executive Director
Chin Seng Teo Senior Vice President-Information Technology
Deepak Shantilal Parekh Senior Independent Non-Executive Director
Robert Barclay Woods Independent Non-Executive Director
Sector and Competitors