Business news from Ukraine

STATE-OWNED ENTERPRISE UKRAINIAN SEA PORT SEEKS TO POST UAH 3.3 BLN OF NET PROFIT IN 2018

The state-owned enterprise (SOE) Ukrainian Sea Port Authority seeks to post UAH 3.3 billion of net profit in 2018, UAH 8.3 billion of revenue and UAH 4.5 billion to pay taxes and duties to the national budget, Head of the Ukrainian Sea Port Authority Raivis Veckagans has said.
“We are planning a slight increase in freight traffic, but there is a decision of the Cabinet of Ministers to reduce port dues by 20% and, accordingly, to cut dividend payments from 75% to 50%, which will affect the financial plan. As for capital investment, which is planned in the amount of about UAH 4.3 billion, we will get a little extra resource, which we will send to its implementation,” he told Interfax-Ukraine.
According to the head of the authority, funds that were announced for capital investment in 2017, but not used, will be used to implement projects planned for this year.
In addition, Veckagans said that, according to data for 2017, revenue of the authority amounted to UAH 8.3 billion, profit – UAH 3.5 billion, and it paid UAH 4.8 billion to the state budget, including all taxes and duties.
“We have disbursed UAH 1.6 billion of capital investments, which is almost three times more than in 2016. This is less than it was planned: in the general plan we had UAH 3.9 billion, but since we adopted it in the middle of the year, we did not have time to implement it. Therefore, we are pleased with the decision of the Cabinet of Ministers that the financial plan for 2018 was approved as early as December 2017. I hope that we will be able to implement all plans and implement the projects this year,” Veckagans said.

LVIV ANNOUNCES TENDER TO DESIGN BLUEPRINTS FOR BUILDING WASTE RECYCLING PLANT

Lviv’s municipal enterprise Zelene Misto (Green City) has announced a tender to design blueprints for building waste recycling plant at the stage of the feasibility study and the project.
The press service of Lviv City Council reported on Tuesday that the announcement was placed in the ProZorro e-procurement system. The approximate cost of works is UAH 4.7 million.
“The concept of this complex is based on the idea of the largest reduction in volume and residual volume of recycled wastes that will be sent for disposal,” the press service said, citing Director of municipal enterprise Zelene Misto Vadym Nozdria.
According to his forecasts, the use of manual sorting options will reduce the amount of waste to be buried by 55%.

STATE PROPERTY FUND OF UKRAINE TO PUT ODESAOBLENERGO’S SHARES UP FOR SALE ON MARCH 20

The State Property Fund of Ukraine (SPF) on March 20 will put a 25% stake in public joint-stock company Odesaoblenergo up for sale at a starting price of UAH 149.081 million.
According to a report in the Vidomosti Pryvatyzatsii newspaper, the auction will take place on the platform of the Ukrainian Exchange (Kyiv).
As reported, in August 2017, the SPF failed to sell 25% of Odesaoblenergo at a starting price of UAH 631.3 million due to a lack of bids.
Odesaoblenergo increased its net profit 7.6-fold (by UAH 59.351 million) in January-September 2017, compared to the same period in 2016, to UAH 68.314 million, net income by 31.8% (by UAH 1.336 billion), up to UAH 5.541 billion.
VS Energy Group controls about 64% of Odesaoblenergo’s shares, another 25% of the company’s shares belong to the state represented by the SPF.

DANISH FM ANDERS SAMUELSEN CALLS FIGHT AGAINST CORRUPTION IN UKRAINE ONE OF CONDITIONS FOR FOREIGN INVESTMENT

A successful fight against corruption will help attract foreign investment in Ukraine, Foreign Minister of Denmark has said.
“Of course, in order to facilitate trade, it is necessary, in particular, to successfully combat corruption, so we very much hope that a specialized anti-corruption court will appear in Ukraine and if the fight against corruption is successful, it will help attract foreign investment in Ukraine,” he said at a joint news conference with Ukrainian Foreign Minister Pavlo Klimkin in Kyiv on Wednesday.
The diplomat added that Danish investments are present in Ukraine, but very big ones.
“We are a small country and we have few resources, so we learned from our own experience how important trade is,” he added.
In turn, the Ukrainian minister said that there are more than 80 Danish companies in the country.
“There are more than 80 Danish companies in Ukraine, if I am not mistaken, I would like there were 800 of them,” Klimkin said.

SEVERODONETSK AZOT INTENDS TO RESTART CARBAMIDE PRODUCTION IN A MONTH

PJSC Severodonetsk Azot (Luhansk region) intends to resume carbamide production in March this year, President of the Ukrainian Chemists Union Oleksiy Holubov has said at a press conference in Kyiv. “Severodonetsk Azot is likely to be launched on gas in March. And then it should start working on a full cycle: production of nitrate and carbamide,” he said. Holubov added the company had already installed a cogeneration unit, which solves the problem of stable power supply.
As reported, in November 2017 Severodonetsk Azot resumed production of ammonium nitrate. In June 2017 Ostchem Group announced the resumption of work of its three plants, including Severodonetsk Azot. Ostchem Group consolidates the chemical assets of Group DF of Dmytro Firtash. It includes the nitrogen fertilizers enterprises PJSC Azot (Cherkasy), PJSC Rivneazot, PJSC Severodonetsk Azot (Luhansk region) and PJSC Stirol Concern (Donetsk region).

KOVALSKA CONSTRUCTION GROUP INVESTS $10 MLN IN PURCHASE OF FREIGHT CARS

The Kovalska Industrial and Construction Group (Kyiv) invested over $10 million in purchase of 360 freight cars for transporting crushed stone from its own quarries.
“Last year, we purchased 360 cars for the transportation of crushed stone from our own quarries to the production facilities of the group in Kyiv, which cost us more than $10 million. It allowed us to harmoniously develop the raw materials business,” Director General of Kovalska Group Serhiy Pylypenko said.
In addition, he said, last year the company also invested more than EUR 5 million in upgrading its own fleet.
“KamAZ is ineffective and not environmentally friendly. In 2017, we bought 30 Mercedes trucks for EUR 5 million to transport cement. In general, we plan to purchase more, maybe even next year,” Pylypenko said.
Kovalskaya Group was established in 2006 and it has been operating in the market of ready-mixed concrete and reinforced concrete products since 1956.