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Business news from Ukraine

AZOVSTAL MORE THAN QUADRUPLES PROFIT IN H1, 2015

KYIV. July 29 (Interfax-Ukraine) – Azovstal Metallurgical Plant (Mariupol, Donetsk region), part of Metinvest Group, in January-June 2015 saw net profit rise by 4.2 times compared to the same period in 2014, to UAH 351.748 million.

As reported in a company quarterly report, published in the information disclosure system of the National Commission on Securities and the Stock Market, its pretax positive financial result for the period increased by 4.3 times, to UAH 434.257 million.

The company for the six months increased net income by 33%, to UAH 14.267 billion.

As of June 30, 2015 retained earnings amounted to UAH 4.16 billion.

As reported, Azovstal in the first quarter posted a net profit of UAH 952.776 million, while in the first quarter of 2014 its net loss was UAH 317.703 million. Its pretax positive financial result amounted to UAH 1.176 billion. The company increased its net income by 77.3%, to UAH 7.410 billion.

The company is part of Metinvest Group, the major shareholders of which are Donetsk-based PJSC System Capital Management (71.24%) and Smart-holding (23.76%).

Metinvest Holding is the managing company of Metinvest Group.

JAPAN PROVIDES $800,000 TO CREATE NEW JOBS FOR PEOPLE DISPLACED FROM DONBAS LIVING IN DNIPROPETROVSK REGION

DNIPROPETROVSK. July 29 (Interfax-Ukraine) – The Japanese government under the UN project provides $800,000 for providing persons displaced from Donetsk and Luhansk regions with new jobs and allowing them to develop own business who are living in Dnipropetrovsk region now.

The press service of Dnipropetrovsk Regional Administration reported that the project foresees that displaced persons who are living in Dnipropetrovsk region will be able to change profession, taking into account professions that are of demand now. There is demand on IT specialist, and the top-priority will be given to this sector.

UN will co-finance wages with the purpose of getting the interest of employers.

“The creation of opportunities for earning money would allow settling many issues. Employment of people is our top-priority,” Project Head Ruslan Fiodorov said at a meeting with an advisor to Head of Dnipropetrovsk Regional Administration Vitaliy Lytvyn.

In addition, UN would help the displaced persons who decided to start own business. Grants and consultations on opening own business would be presented.

“We would continue any business plans. The main condition is that they must be competitive,” Fiodorov said.

The press service said that up to $10,000 would be provided for the realization of one business plan.

GEOLOGY SERVICE SELLS FIVE OIL AND GAS FIELDS FOR UAH 38.5 MLN

KYIV. July 29 (Interfax-Ukraine) – The State Geology and Deposits Service of Ukraine has sold five oil and gas fields for UAH 38.471 million, according to materials of Ukrainian Universal Exchange where the auction was held on July 24.

The starting price of four out of five licensed oil and gas fields was considerably increased.

Horizons LLC won the auction for the Bunivska field (Lviv region). The company paid UAH 3.287 million for the field with the starting price of UAH 137,000.

Project-Bud private enterprise won the auction for the Rudnykivska field (Lviv region). The company paid UAH 11.555 million for the field with the starting price of UAH 295,000.

Nordik private enterprise won the auction for the Kolodnytska field (Lviv region). The company paid UAH 6.298 million for the field with the starting price of UAH 149,000.

Naftogazrozrobka LLC won the auction for the Khoroshivska field (Kharkiv region). The company paid UAH 16.565 million for the field with the starting price of UAH 5.085 million.

Gas Oil Investments LLC won the auction for the Batynetsko-Pereshpynska field (Lviv region). The company paid UAH 766,000 for the field with the starting price of UAH 727,000.

Ultimate beneficiaries of Horizons LLC are Lviv businessman Zinoviy Kozytsky and Czech Karel Komarek. Kozytsky also fully controls Project-Bud and Nordik.

Naftogazrozrobka LLC belongs to DTEK of Rinat Akhmetov and ultimate beneficiaries of Gas Oil Investments LLC are Vasyl Stets and Israel’s Advanced Technical Geological Consulting.

 

CREATION OF SINGLE JSC IN AVIATION INDUSTRY BASED ON ANTONOV WILL ACCELERATE REVIVAL OF UKRAINIAN MILITARY TRANSPORT AVIATION – EXPERT

KYIV. July 29 (Interfax-Ukraine) – The quick revival of military transport aviation in Ukraine under the conditions of the new challenges to the defense and territorial integrity of the state is possible by optimizing the existing resources of the aviation industry as part of the creation and international certification of the single state joint-stock company based on Antonov State Enterprise, former head of Ukrainian Avia-Transport Company (UATC) Vitaliy Popov has said.

“The idea is that to bring the single state aircraft building joint-stock company to the global market that would operate under international standards and to raise investment and take orders first from western customers. The company could be created via the merger of all aviation and aircraft repair facilities that were previously transferred to Ukroboronprom on the basis of Antonov State Enterprise,” he said in an interview with Interfax-Ukraine.

The key issues that would ensure the survival and development of Ukrainian aircraft manufacturing, taking into account the halt of cooperation with Russia, are the inclusion of Ukraine, as represented by Antonov, in western sectoral, technological, industrial cooperation and defense programs.

“Fortunately, there is the interest to this cooperation today. Recently we discussed the issue with the advisor to the defense minister of Canada: the preliminary order for Ukraine and Antonov could be over $400 million. Israeli and U.S. companies also showed their interest in cooperation with Antonov. The possibilities for realizing promising partnership should be provided,” he said.

Popov also expressed his support for renewing the Ukrainian Armed Forces with new aircraft.

“According to Flightglobal Insight’s World Air Forces, in 2014 the number of operating aircraft of Ukrainian combat and transport aviation fell from 400 to 222. Some aircraft were restored: 82 planes, 44 helicopters and 27 drones have been restored since the start of the Anti-Terrorist Operation (ATO). However, the army needs new equipment, and the economic and aircraft industry needs orders,” Popov said.

“It is important to accelerate the realization of promising programs of Antonov Enterprise as a part of international cooperation: first of all this concerns An-178, An0132 and An-188 aircraft that have excellent export prospects,” he said.

UKRAINE SIGNS $800 MLN WORTH OF LOAN AGREEMENTS WITH WORLD BANK, JAPAN – MINISTER

KYIV. July 28 (Interfax) – Ukraine has signed loan agreements with the World Bank and Japan for $500 million and $300 million, respectively, Ukrainian Minister of Economic Development and Trade Aivaras Abromavicius said.

“One year on, the $500 million loan (agreement) with the World Bank and the $300 million from Japan have finally been signed. For budgetary needs,” the minister wrote on Twitter on July 24.

He expressed gratitude to the World Bank, the Japanese government and Ukrainian Finance Minister Natalie Jaresko and her team, as well as the Ukrainian parliament and Cabinet.

ODESA PORT-SIDE CHEMICAL PLANT POSTS UAH 152 MLN NET PROFIT IN H1, 2015

KYIV. July 28 (Interfax-Ukraine) – PJSC Odesa port-side chemical plant in January-June 2015 saw a net profit of UAH 151.953 million against UAH 116.806 million in net loss in the same period last year.

According to a company report in the information disclosure system of the National Commission on Securities and the Stock Market, its net income in the first half of the year increased two-fold, to UAH 5.801 billion, gross profit amounted to UAH 1.055 billion, whereas in January-June 2014 the company posted a gross loss of UAH 16.764 million.

In January-June 2015, the plant increased production of mineral fertilizers by 11.8% compared to the first half of 2014, to 803,000 tonnes, their sales – by 6.2%, to 784,000 tonnes.

As reported, in 2014 the plant reduced its net loss by 4.2 times, to UAH 270.473 million, while increasing net income by 10.7%, to UAH 5.428 billion.

Production of mineral fertilizers in 2014 amounted to 1.172 million tonnes, their sales – 1.186 million tonnes.

State-owned Odesa port-side chemical plant is engaged in the production of chemical goods, as well as ammonia transshipment by sea. The government recently announced it plans to privatize the plant in 2015 and hopes to receive at least $600 million for the company.