Business news from Ukraine

METALLURGICAL GROUP METINVEST’S DEBT FALLS BY $53 MLN IN FEB 2018

The revenues of Metinvest B.V. (the Netherlands), the parent company of Metinvest mining and metallurgical group, in February 2018 decreased by 9.4%, or by $95 million, compared to the previous month, to $914 million from $1.009 billion. According to the preliminary unaudited consolidated monthly financial results of the company, EBITDA for February was $196 million, which is 14% ($32 million) less compared to January ($228 million).
According to the report, the adjusted EBITDA of the metallurgical division of the group in February 2018 was $120 million (in January some $140 million), including $12 million from participation in the joint venture ($11 million), while that of the mining division was $113 million (in January $110 million), in particular from JV some $18 million ($14 million). The management company’s expenses amounted to $7 million.
Total revenues in February 2018 consisted of the income of the metallurgical division in the amount of $778 million ($866 million in January), the mining division in the amount of $322 million ($255 million), while intra-group sales stood at “minus” $186 million (“minus” $112 million). The company’s total debt in February fell by $53 million compared to January, to $3.042 billion from $3.095 billion, while the amount of cash increased by $9 million, to $282 million from $273 million.

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GFK UKRAINE: CONSUMER CONFIDENCE IMPROVES IN MARCH

Consumer confidence of Ukrainians in March 2018 improved by 2.3 points, to 57.7 compared to the February figures after a negative trend in January and February, according to data from GfK Ukraine. According to the report, in March Ukrainians were optimistic about the stability of the national currency: the devaluation expectations index showed the greatest dynamics and fell by 9.9 points, to 149.9. GfK Ukraine also notes that in March the index of propensity to consume rose by 6.8 points compared to February (to 65.2), while the index of expected changes in personal financial standing was up by 4.3 points (to 58.8).
“The most positive dynamics of the index of propensity to consume and the index of expected changes in personal financial standing has been recorded in the large cities (over 500,000 residents),” GfK Ukraine analysts commented.
In March, Ukrainians were also optimistic about inflationary processes: the index of inflationary expectations fell by 4.2, to 183, GfK Ukraine said. GfK Ukraine has been surveying households to determine consumer confidence in Ukraine since June 2000. Some 1,000 respondents are polled.

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FITCH RATINGS AFFIRMS UKRAINE’S RATINGS AT ‘B-‘; OUTLOOK STABLE

Fitch Ratings has affirmed Ukraine’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘B-‘. The Outlook is Stable, Fitch has said in a press release. In addition, Long-Term Foreign-Currency IDR affirmed at ‘B-‘; Outlook Stable; Long-Term Local-Currency IDR affirmed at ‘B-‘; Outlook Stable; Short-term foreign-currency IDR affirmed at ‘B’; and Short-term local-currency IDR affirmed at ‘B’. Country Ceiling affirmed at ‘B-‘.
Ukraine’s ratings balance weak external liquidity, a high public debt burden and structural weaknesses, in terms of a weak banking sector, institutional constraints and geopolitical and political risks, against improved policy credibility and consistency, the sovereign’s near-term manageable debt repayment profile and a track record of bilateral and multilateral support.

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EUROPEAN INSURANCE ALLIANCE INCREASES NET PREMIUMS BY 25% IN Q1 OF 2018

PrJSC European Insurance Alliance (Kyiv) in January-March 2018 collected UAH 40.348 million of net premiums, which is 25.8% more compared to the same period in 2017. According to a company report in the information disclosure system of the National Commission on Securities and the Stock Market, the volume of signed premiums was UAH 49.770 million (an increase of 11%). Premiums worth UAH 8.674 million were transferred to reinsurance against UAH 8.914 million for the same period of 2017 (2.7% down).
During this period insurance claim fee payments rose by 38.4%, to UAH 21.135 million. The net profit of the company for the first three months amounted to UAH 1.135 million, while for the same period a year earlier some UAH 790,000.
According to official reports, the administrative expenses of the company amounted to UAH 5.087 million, which is 3.8% less than in the three months of 2017. PrJSC European Insurance Alliance has been working in the insurance market since September 1994. There are 17 structural divisions in Kyiv and the regions of Ukraine.

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REAL WAGES IN UKRAINE 9.5% UP IN MARCH

Real wages in Ukraine in March 2018 compared to March 2017 increased by 9.5%, compared to February 2018 by 5.9%, the State Statistics Service has said. The average nominal wage of full-day workers in March 2018 compared to February 2018 increased by 7.1%, in annual terms rose by 24.1%, amounting to UAH 8,382, whereas in February it was UAH 7,828, January some UAH 7,711. According to the statistics, the largest increase in the average salary of full-day workers in March 2018 compared with March 2017 was observed in Dnipropetrovsk (30.4%), Zhytomyr (26.7%), Zakarpattia (27.7%), Poltava (26.4%), Zaporizhia (26.2%), Cherkasy (25.4%), Vinnytsia and Chernivtsi (25.1%), Lviv (24.3%), Sumy (24.6%), Ternopil regions (24.1%), and Kyiv (21.6%).
Wage growth in Donetsk and Luhansk regions (excluding part of the uncontrolled territories) was 25.5% and 19.1% respectively.
The highest level of wages in the past month was recorded in Kyiv at UAH 13,388, the lowest one in Ternopil region at UAH 6,394.
In March 2018 compared to the same month in 2017 wages grew in the sphere of state administration and defense, compulsory social insurance (by 41.7%), financial and insurance activities (30%), administrative and support services (29.1%), industry (26.7%), wholesale and retail trade, repair of motor vehicles and motorcycles (23.4%), education and construction (21.3%), real estate operations (19.8%), rural economy, forestry and fishery (19.7%), transport enterprises, warehousing, postal and courier activities (19.1%), temporary accommodation and catering (18.5%), health care and social assistance (18.4%), professional, scientific and technical activities (16.8%), information and telecommunications (14.3%), in the sphere of art, sports, entertainment and recreation (13.7%).