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Summary of AB Klaipedos nafta webinar

Klaipedos Nafta

On the 30th October 2020, AB Klaipedos nafta (KN) held an investor conference webinar where KN Chief Executive Officer Darius Šilenskis and Chief Financial Officer Jonas Lenkšas commented Company’s financial results for the nine months of 2020.

Webinar recording is available online at: https://youtu.be/KASPrulga-Q

The presentation demonstrated during the webinar is attached to this announcement.


Jonas Lenkšas, Chief Financial Officer, +370 694 80594.


Attachment


Latest Stories

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As a result, some decided to go so big they are not allowed to fail. “As the Chinese like to say, if you borrow 100,000 yuan from the bank, you are a bit scared; if you borrow a million yuan, both you and the bank are a little nervous; but if you take a 1 billion yuan loan, you are not scared at all, the bank is,” Ma said. The consequences came this week. On Monday, Beijing’s top financial watchdogs summoned Ma and dressed him down. Beijing also issued draft rules on online micro lending, stipulating stricter capital requirements and operational rules for some of Ant Group Co.’s consumer credit businesses. But the big shocker came on Tuesday night. The Shanghai Stock Exchange suspended Ant’s listing on its Star board, citing Monday's meeting and subsequent regulatory changes. Ant then said in a filing it would suspend its Hong Kong IPO as well. The fintech giant was scheduled to start trading on Thursday. The news sparked a slide in Alibaba shares on Tuesday in New York, while dragging down other Chinese companies’ U.S.-listed stocks.What Ma said was a bit sensational, perhaps. But he was right. China’s bankers are so averse to extending credit to smaller borrowers that Beijing redefined “inclusive financing” to make its banks’ loan books look prettier. In fact, it’s been so difficult for small businesses to obtain bank credit in the last decade that they have become hard wired not to invest for the future. Here’s the latest tidbit of evidence: In the third quarter, even as China’s economy recovered and 86% of 300 smaller manufacturers CLSA spoke to became profitable, most remained wary. A record-breaking 59% of their capital expenses went into mere “regular maintenance,” the brokerage found.Ma’s words were blunt, but these phrases, such as “pawn shops,” are not his concoctions. Bureaucrats at the People’s Bank of China, for instance, had used the same words themselves. So why is Ma being singled out? Could it be that Ant is too profitable and is now being targeted? Ant is raising at least $34.5 billion in an IPO that attracted more than $3 trillion of retail orders. Meanwhile, regional banks are still in the doghouse, struggling and sometimes being restructured because they lack capital buffers. In the fast-growing consumer credit business, Ant is essentially a matchmaker while banks lend and put aside cash in case some loans go sour. Fintech giants are making much more than lenders, city commercial banks complained to local media. Ant’s vast consumer base appreciates its small loan offerings. But going forward, to appease its banks, Beijing may want to level the regulatory playing field. For instance, Ant may no longer operate just as a matchmaker and might be asked to keep 30% of the loans on its balance sheet, compared with only about 2% now. That should have been no problem because Ant’s IPO would have brought in billions of dollars of capital for loan provisions.In its statement, the Shanghai exchange cited the changing regulatory landscape as one reason Ant no longer qualified for a listing. But in reality, nothing has changed. Since 2017, Beijing’s watchdogs have been debating whether to allow online micro lenders to take a simple loan facilitation model or require them to put away loan provisions. This new draft rule is just a continuation of the debate. At the opening of his speech, Ma admitted he was conflicted as to whether to attend the forum and speak up. Now he probably regrets it. But here’s the thing: If China is serious about financial innovation, “inclusive financing” or the digital yuan, let the man who pioneered the business and made billions along the way share his experiences and thoughts. If Ma says systemic risk is not China’s Achilles’ heel, hear him out. He knows where the real problem is and could be part of the solution.(Updates with Alibaba shares in the fourth paragraph. An earlier version was corrected to show China is averse to extending credit to smaller borrowers, not lenders, in the fifth paragraph.)This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Shuli Ren is a Bloomberg Opinion columnist covering Asian markets. She previously wrote on markets for Barron's, following a career as an investment banker, and is a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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AbbVie (ABBV)AbbVie is a pharmaceutical company, one of Big Pharma’s major names. Pharmaceutical and biotech companies are known for their combination of high risk and high reward potential. The rewards and risks are both typified in Humira, the company’s successful immunosuppressive anti-inflammatory drug. Humira is expected to bring in ~40% of AbbVie’s 2020 drug division revenues – but with an expired patent, competition is growing. Against this backdrop, AbbVie had acquired another pharmaceutical company, Allergan, that increased top-line revenues by $16B for AbbVie while the combined companies bring in $2B in synergies. The acquisition showed investors that AbbVie is simultaneously looking beyond their holdings in Humira.Future guidance has revenues moving higher along with earnings. Guidance on revenues has been increased to $10.47 - $10.49 EPS versus $10.35 - $10.45 EPS. The earnings were enough to allow management to raise the dividend from $1.18 to $1.30. 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This figure suggests a potential upside of 35% over the next year. (To watch Porges track record, click here)Overall, Wall Street is very bullish on Abbvie. There are a total of 8 ratings; 7 Buys and 1 Hold -- all add up to a Strong Buy consensus rating. The stock’s current price is $88 and the average price target is $110.13 suggesting 25% one-year upside move. (See ABBV stock analysis on TipRanks)WesBanco (WSBC)Next up is WesBanco, a bank operating in the region of western Pennsylvania, West Virginia, Ohio and Kentucky with 236 branches. The pandemic has struck financial institutions because of loans in default. Loan losses, or their potential, have forced banks and lenders to start building up reserve ratios and set aside revenue for loan losses.WesBanco has spent the past two quarters building up their reserve ratio with a large amount being set aside in Q2 and a smaller amount in Q3 and currently has an above-peer ratio level.Turning to the dividend, WSBC currently pays out 32 cents per common share, and even in the coronavirus crisis it held that payment steady. The 52-cent payment annualizes to $1.32 per share, and gives a considerable yield of 5.16%.Raymond James analyst William Wallace is standing squarely with the bulls, noting: "PTPP earnings came in above expectations as noted, driven largely by lower operating expenses and higher fee income. Ultimately, we expect investors to remain honed in on credit in the nearer-term, where the company's bolstered reserve continues to provide us with a certain degree of comfort. All in, with shares trading essentially in line with peers, we continue to view the risk/reward dynamic positively given the company's solid capital levels (+9% TCE), along with both promising core earnings and deferral trends."Unsurprisingly, Wallace rates WesBanco an Outperform (i.e. Buy) along with a $29 price target. This target suggests a potential upside of 15% over the next year. (To watch Wallace’s track record, click here)Wallace is not the only fan of WSBC on Wall Street, as TipRanks analytics exhibit the stock as a Strong Buy. Based on 4 analysts tracked in the last 3 months, 3 rate the stock a Buy, while one says Hold. The 12-month average price target stands at $26.88, marking a 6.5% upside from where the stock is currently trading. (See WSBC stock analysis on TipRanks)CatchMark Timber (CTT)CatchMark Timber is an owner and operator of timberlands located in various parts of the country. The pandemic has not directly affected the timber industry. 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Hong Kong Exchanges & Clearing Ltd., owner of the city’s bourse, dropped 2.2%.The move upends what had been one of China’s biggest business success stories, as well as what was to be a pivotal step in the development of the nation’s fast-growing capital markets.“It’s definitely surprising,” said Mike Bailey, director of research at FBB Capital Partners. “If there is something strange going on on the macro side for China’s financial markets or in the company, that would be worrisome.”In just a decade, Ant, an affiliate of Ma’s Alibaba Group, has exploded into the world’s largest financial technology company, reshaping the lives of many ordinary Chinese. But its ascendance -- and Ma’s growing global reputation -- has also posed a threat to China’s state-run lenders and their political benefactors.Tuesday’s developments left bankers and global investors groping for answers. The immediate fate of the many billions already tied up in the IPO is for now uncertain.Changes NeededChinese authorities didn’t give much detail about the issues behind the suspension, beyond saying that the much-anticipated debut couldn’t go ahead because there had been “significant change” in the regulatory environment.The company will have to make changes that include capital increases at its lucrative micro-lending units, according to people familiar with the matter. It will also have to reapply for licenses for the units to operate nationwide, the people added, asking not to be identified discussing a private matter.The IPO is expected to be delayed by about six months, and funds will be returned to investors in the meantime, news portal QQ.com reported, citing an unidentified person.Major gray market brokers for the deal, including BTIG LLC, told clients all transactions will be canceled, according to people familiar with the matter. Millions of shares were traded in the over-the-counter market prior to Ant’s planned debut, many at about a 50% premium to the listing price of HK$80 ($10.32). BTIG didn’t immediately respond to a request for comment.Ant, which spun out of Alibaba in 2010, has long been seen as a champion of China’s economy and an example of how the Communist Party has allowed entrepreneurs -- especially in the technology sector -- to flourish within its top-down political system. Tuesday’s setback may cast a pall over the country’s financial markets, even as President Xi Jinping tries to create stock exchanges that can rival the U.S.“Ant Group sincerely apologizes to you for any inconvenience caused by this development,” the company said in a message to investors. “We will properly handle the follow-up matters in accordance with applicable regulations of the two stock exchanges.”There were warning signs on Monday when Ma was summoned to a rare joint meeting with the People’s Bank of China and three other top financial regulators and told his firm would face increased scrutiny and be subject to the same restrictions on capital and leverage similar to banks.“This further reinforces the regulatory pressures building on tech giants,” said Nader Naeimi, head of dynamic markets at AMP Capital Investors Ltd. in Sydney. “It’s good news for banks, bad news for Jack Ma,” he said, referring to the competitive threat Ant poses for traditional lenders.Record IPOThe IPO was on pace to break records. It had attracted at least $3 trillion of orders from individual investors for its dual listing in Hong Kong and Shanghai, and in the preliminary price consultation of its Shanghai IPO, institutional investors subscribed for over 76 billion shares, more than 284 times the initial offering tranche.The fintech company’s IPO would have given it a market value of about $315 billion based on filings, bigger than JPMorgan Chase & Co. and four times larger than Goldman Sachs Group Inc.Dealmakers at firms including Citigroup Inc. and Morgan Stanley were set to feast on an estimated fee pool of nearly $400 million for handling the Hong Kong portion of the sale, but were instead left reeling after the listing was pulled. Top executives close to the transaction said they were shocked and trying to figure out what lies ahead.But Ant has faced scrutiny in Chinese state media in recent days after Ma criticized local and global regulators for stifling innovation and not paying sufficient heed to development and opportunities for the young. At a Shanghai conference late last month, he compared the Basel Accords, which set out capital requirements for banks, to a club for the elderly.And over the weekend, at a meeting of the Financial Stability and Development Committee led by Vice Premier Liu He, officials stressed the need for fintech firms to be regulated.Ant dominates China’s payments market via the Alipay app. It also runs the giant Yu’ebao money-market fund and the country’s largest online consumer-lending platform. Other businesses include a credit-scoring unit and an insurance marketplace.(Updates with gray market trading in 13th paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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