Business news from Ukraine

STATE-OWNED UKRBUD COMPANY HAS UAH 6.8 MLN OF NET PROFIT IN 2017

State-owned public joint-stock company Ukrbud Construction Company, part of the Ukrbud State Construction Corporation (all based in Kyiv), saw a 12.4% rise in net profit in 2017, to UAH 6.8 million. According to a company’s annual report under IFRS, net revenue grew by 46.4%, to UAH 445.2 million, gross profit tripled, to UAH 98.3 million, and operating profit grew six-fold, to UAH 44.1 million.
Undistributed profit grew by 28.8%, to UAH 18.5 million. Current liabilities shrank by 35%, to UAH 256.2 million and the company did not have non-current liabilities. Ukrbud Construction Company was founded by the Ukrainian government in 2004.

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CHINESE EXCHANGE INTERESTED TO BUY OVER 25% IN UKRAINIAN PFTS EXCHANGE

Chinese Bohai Commodity Exchange (BOCE), which last year became the owner of the Ukrainian Bank for Reconstruction and Development (EBRD), is mulling the possibility of buying over 25% of shares in public joint-stock company PFTS stock exchange. The Antimonopoly Committee of Ukraine reported that BOCE (Hong Kong) Co., Limited asked the committee to present the preliminary conclusions on the acquisition of the stake in the Ukrainian exchange.
As reported, BOCE (Hong Kong) Co., Limited at the end of November 2016 won at the auction of the State Property Fund of Ukraine for the sale of 99.9% of UBRD shares being in state property. The final selling price was UAH 82.83 million.
The contract for the sale and purchase of shares was signed on June 8, 2017 and in early July China’s BOCE completed the payment of shares purchased at the privatization auction.

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GOODS TURNOVER OF EVO MARKETPLACES 36% UP IN Q1

Goods turnover of marketplaces of the EVO Group in Ukraine (Prom.ua, Bigl.ua, Crafta.ua, Shafa.ua) in January-March 2018 totaled UAH 5 billion, which is 36% more than a year ago, the company’s press service has told the Kyiv-based Interfax-Ukraine news agency.
The number of orders in the first quarter of this year increased one third, while the average receipt did not actually change.
On average, Ukrainians spend UAH 960 for one purchase on Prom.ua, the average receipt on Bigl.ua is UAH 678, for buyers Shafa.ua it is UAH 257, and the average receipt for Crafta.ua is UAH 217.
“Most often Ukrainians buy clothes, equipment and electronics on marketplaces, but the growth pace of these categories are slowing down. EVO analysts said that Ukrainians are more willing to buy food, everyday goods, cosmetics, goods for children, and manufactured goods on the Internet,” the company said.
EVO also said that at the beginning of the year, the demand for goods for construction and repair has traditionally been growing.
In the first quarter of 2018 the number of purchases in the category “food and drink” increased 2.2-fold, to UAH 141 million, in the category “pets and pet products” – by 80.5% to UAH 44.9 million, and in the category “equipment and electronics” – by 72.3% to UAH 743.4 million.
The core business of EVO is marketplaces. The projects of the group are working in the markets of Ukraine, Belarus, Russia and Kazakhstan.
In May 2016, the electronic platform Prom.ua was reorganized into a group of companies EVO.
The group implements B2C, B2B, B2G and C2C projects on the Internet. So, within EVO the following projects are developing: prom.ua, satu.kz, tiu.ru, deal.by, bigl.ua, shafa.ua, kabanchik.ua, crafta.ua, as well as a platform-participant of the electronic public procurement system of Ukraine zakupki.prom.ua.

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STATE-OWNED UKRGASBANK HAS 2.5-FOLD RISE IN NET PROFIT IN Q1

State-owned Ukrgasbank (Kyiv) in January-March 2018 saw UAH 54.201 million of net profit (a 2.52-fold rise year-over-year). According to a financial report posted on the bank’s website, net interest bearing income grew 1.8-fold, to UAH 770.067 million. Net interest bearing income after the write-back of part of reserves came to UAH 854.876 million (a 2.6-fold rise year-over-year).
Net commission income grew by 32%, to UAH 149.453 million.
The bank saw UAH 241.281 million of loss from transactions with foreign currencies compared with UAH 6.443 million of profit a year ago.
Total non-interest loss accounted for UAH 5.098 million in January-March 2018, while in Q1 2017 profit of UAH 198.343 million was seen.
Assets grew by 7.4%, to UAH 74.318 billion. The loan portfolio narrowed by 8%, to UAH 30.944 billion. The volume of short-term securities significantly grew – by 42.1%, to UAH 29.233 billion.
The deposit portfolio expanded by 8.3%, to UAH 65.7 billion.
Ukrgasbank was founded in 1993. As of January 1, 2017, the state represented by the Finance Ministry owned 94.9% of its shares.
According to the National Bank of Ukraine (NBU), as of January 1, 2018, Ukrgasbank ranked fourth (UAH 69.274 billion) in terms of assets among the 84 banks operating in the country.

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INSURER INGO UKRAINE WILL PAY UAH 26 MLN IN DIVIDENDS

The shareholders of INGO Ukraine insurance company (Kyiv) at a meeting on April 26 made a decision to pay dividends in the amount of UAH 26.148 million, according to the official information of the insurer. Money is paid directly to non-resident shareholders in U.S. dollars at the NBU rate on the day of payment, to residents in the national currency. Payment is made in the amount of UAH 85.58 per share.
INGO Ukraine has more than 20 years of experience in the market. It has 28 licenses for various types of compulsory and voluntary insurance, provides insurance services to corporate and retail customers. The INGO Ukraine team is more than 500 employees in 25 branches operating in all regions of Ukraine.
The IBI-Rating agency confirmed the company’s long-term credit rating at the level of uaAA for 2017, the forecast is “stable” on the national scale.
The main shareholder of the company since 2017 has been the Ukrainian business group DevelopmentConstruction Holding (DCH) with a 99.99% share.

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GOVERNMENT COMMITTEE APPROVES LIST OF LARGE ENTERPRISES FOR PRIVATIZATION

The government committee has approved a list of large-scale privatization enterprises for 2018, which included 26 companies, including five regional energy companies, Centrenergo, Odesa Port-Side Chemical Plant, Turboatom, Zaporizhia Titanium and Magnesium Combine, United Mining-Chemical Company, Sumykhimprom, Acting Head of the State Property Fund (SPF) Vitaliy Trubarov has said.
He said 18 facilities are already managed by the fund, including Ternopiloblenergo, Zaporizhiaoblenergo, Kharkivoblenergo, Mykolaivoblenergo and Khmelnytskoblenergo, Kherson thermal power plant (TPP), Dniprovska TPP, Kryvy Rih TPP and Severodonetsk TPP, Azovmash, Turboatom, Zaporizhia Titanium and Magnesium Combine, Oriana, Aluminum Foil Plant, President-Hotel, Centrenergo, Odesa Port-Side Chemical Plant, and Sumykhimprom.
Trubarov said three enterprises are managed by the Ministry of Economic Development and Trade, including United Mining-Chemical Company, Electrotyazhmash and Dniprovsky Electric Locomotive Plant. Two more objects are managed by the Ministry of Agrarian Policy and Food: the Agrarian Fund and the State Food and Grain Corporation of Ukraine. Each of the Ministry of Energy and Coal Industry, the Cabinet of Ministers and the Ministry of Health manage one enterprise: Krasnolymanska coal company, Ukragroleasing, and Indar respectively.

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