Business news from Ukraine

METALLURGICAL GROUP METINVEST INCREASES CAPITAL INVESTMENTS BY 45% TO $542 MLN IN 2017

Metinvest B.V. (the Netherlands), the parent company of the Metinvest mining and metallurgical group, in 2017 increased capital investments by 45% compared to the previous year, to $542 million.
According to the audited consolidated financial results for 2017, expenditures on support projects accounted for 83% of total investments (75% in 2016), on strategic projects some 17% (25%).
At the same time, the metallurgical segment accounted for 51% of capital investments (52% in 2016), mining for 48% (46%).
Corporate expenses were $9 million for the reporting period ($4 million for 2016).
The total amount of net cash used in financing activities in 2017 was $110 million, which is 5% more than a year ago.
Net cash used in investing activities increased by 36% over the period compared to 2016, to $449 million. The total cash flow for the acquisition of fixed assets and intangible assets was $465 million, which is 30% more than in 2016. There were no proceeds from the sale of subsidiaries and affiliated companies, while in January 2016 the company received $6 million from the sale of its stake in Black Iron (Cyprus) Limited. Proceeds from the sale of fixed assets and intangible assets stood at $1 million compared with $3 million in 2016. The total amount of interest received was $15 million compared to $18 million in 2016.

AGROINDUSTRIAL HOLDING ASTARTA PLANS TO ENLARGE AREAS PLANTED WITH CORN, SUNFLOWER

Astarta agroindustrial holding, the largest sugar producer in Ukraine, has started working in the fields and applied fertilizers to 40% of fields with winter crops.
The holding said in a press release that wheat, sugar beets, corn and soybeans remain the main crops in crop rotation.
In general, the company has around 54,000 ha with winter crops. The crops are in a good state.
“Areas planted with sugar beet will be at the level of last year, areas with corn and sunflower would be expanded,” the press service said.
The company also plans to stir up operations of subsidiary Astarta-Selection in 2018. The company’s core business is production of wheat and soybeans for seeds, field research, seed and soil laboratories.
In the course of preparation for the upcoming season, scheduled repairs of equipment and premises, step-by-step execution of investment projects are being carried out at the sugar refineries of Astarta. Large investment in this segment is aimed at building a new warehouse for bulk storage of sugar (Narkevychi sugar factory), creating a system of water treatment plants (between the Holbyne sugar refinery, the bioenergy complex and the Holbyne soybean processing plant) and installing new pulp presses.
Astarta is a vertically integrated agro-industrial holding operating in Poltava, Vinnytsia, Khmelnytsky, Ternopil, Zhytomyr, Chernihiv, Cherkasy and Kharkiv regions.

ANTONOV STATE ENTERPRISE HAS 85% RISE IN NET PROFIT IN 2017

Antonov State Enterprise (Kyiv) saw a 85.43% rise in net profit in 2017 under Ukrainian accounting standards, to UAH 330.22 million.
According to a financial report for 2017 posted on the company’s website, net revenue grew by 66.4%, to UAH 6.052 billion.
Antonov is the leading Ukrainian developer and manufacturer of aircraft, a recognized world leader in the niche of transport aircraft. The enterprise cooperates with more than 75 countries. By the decision of the government, the enterprise has been part of the Ukroboronprom State Concern since April 2015.
According to the enterprise, in 2016, its net profit under Ukrainian accounting standards grew 4.1-fold, to UAH 178.1 million and net revenue fell by 0.16%, to UAH 3.64 billion.

KNIAZHA VIENNA INSURANCE GROUP QUINTUPLES LOSSES IN 2017

Kniazha Vienna Insurance Group (Kyiv) in 2017 saw a net loss of UAH 72.452 million, which is five times more than in 2016, according to materials for the agenda of a general shareholders’ meeting scheduled for April 16.
Undistributed loss of the company for the last year increased by 20.9%, to UAH 395.855 million.
The insurer for the year increased assets by 7%, to UAH 476.229 million. Net worth decreased by 2.6 times, to UAH 49.982 million.
Total debtor indebtedness rose by 35%, to UAH 9.171 million, cash and cash equivalents by 7.1%, to UAH 219.1 million.
Long-term liabilities increased by 38.5%, to UAH 345 million, current liabilities by 27%, to UAH 81.298 million.
Kniazha Vienna Insurance Group was established in August 1997. It has 27 licenses for voluntary and compulsory types of insurance. The regional network covers the entire territory of Ukraine.

UKRAINE STEPS UP CYBERSECURITY COOPERATION WITH UNITED KINGDOM

Ukraine and the United Kingdom have held consultations in London to step up cooperation in the field of cybersecurity.
“Due to recent developments, Ukraine is boosting interagency cooperation with Britain in the field of countering cyber threats. First consultations between Ukraine and the United Kingdom have begun in London today,” the press service of the Ukrainian Foreign Ministry said on Twitter on Monday.

ELECTRONIC REAL ESTATE SURVEY REGISTER SHOULD BE CREATED IN UKRAINE

The public council of the Regional Development, Construction, Housing and Utilities Economy Ministry of Ukraine believes that the unified register of technical survey of real estate facilities should be created in Ukraine. “We propose to the Regional Development, Construction, Housing and Utilities Economy Ministry to create an electronic register of technical survey materials. Notaries, lawyers, employees of the centers of administrative services will be able to verify in the register if the survey has been provided with a technical passport,” Head of the ZakhidTekhInventaryzatsia association Andriy Davydiuk said at a press conference at Interfax- Ukraine on Tuesday.
He said that the electronic register will allow verifying the authenticity of technical documents, as well as providing rescue services with useful information.
“On April 19, the first Ukrainian congress of engineers for the technical surveys of real estate is planned to be held in Kyiv, where we plan to create a unified platform and develop draft recommendations [on improving the technical surveys],” Head of the public council at the Regional Development, Construction, Housing and Utilities Economy Ministry Pavlo Mikhailidi said.
Chairman of SkhidTekhInventaryzatsia Illia Meleshkin said that the technical passport in Ukraine does not give enough information about a real estate facility, in particular, its location. This information in open sources would relax work of rescue services, he said.
Davydiuk said that the public real estate technical survey register would not affect privacy of real estate owners as opponents of the creation of the register believe.
“Since 1998, constructors place information about construction projects on their websites and layouts of apartments are available to the public. When apartments are sold online, their layouts and passports are also posted. One should not be afraid of it,” Davydiuk said.