Business news from Ukraine

UKRAINIAN SPACE INDUSTRY INCREASES PRODUCTION IN Q1 BY 12.7%

Enterprises of the space industry of Ukraine in January-March increased production in comparison with the same period in 2017 by 12.7%, to UAH 884.4 million, the press service of the State Space Agency of Ukraine has reported. The volume of sales in the first quarter increased by 12.3%, to UAH 892 million. The total volume of gross output for the reporting period of 2018 exceeded UAH 1.462 billion, comparative figures for the last year’s reporting period are not available in the report.
According to the State Space Agency of Ukraine, the volume of the rocket and space industry’s gross output in the first quarter of 2018 rose by 21.2% compared to the same period in 2017, to UAH 52.2 million. Work under the state order was conducted by two enterprises: Pavlohrad Chemical Plant and Ukrkosmos.
The share of exports in the total volume of sales for the reporting period was 32%, while in the total volume of exports some 84.7% to the EU, the United States and other countries.
According to the data provided, seven enterprises posted profit in the first quarter. In particular the net profit of state enterprise Pavlohrad Chemical Plant amounted to UAH 33.66 million, that of PJSC Hartron some UAH 630,000, state enterprise Pivdenmash some UAH 100,000, Dniprovsky Design Institute some UAH 100,000, and Scientific and Research Technological Institute of Instrument Making some UAH 100,000.

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INVESTMENT IN UKRAINIAN AGRICULTURE GROWS, KEY SOURCE OF FINANCING – OWN FUNDS OF COMPANIES

The volume of investment in agriculture and provision of serviced related to them totaled UAH 10.52 billion in January-March 2018, the Agricultural Policy and Food Ministry of Ukraine has reported. According to the report, this was 9.5% more than a year ago. In addition, investment in production of food, beverage and tobacco products totaled UAH 4.5 billion in the first quarter of 2018, which was 56% more than a year ago.
The key source of financing of capital investment is own funds of companies, which share of total investment was 76.2%.

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STATE PROPERTY FUND TO HOLD TENDER TO SELECT ADVISOR FOR PRIVATIZATION OF ODESA PORT-SIDE PLANT

The State Property Fund of Ukraine (SPF) will hold a tender to select an advisor for privatization of public joint-stock company Odesa Port-Side Plant, acting Head of the SPF Vitaliy Trubarov has said. “The Odesa Port-Side Plant will be privatized under the new law with the attraction of an advisor. Now we are working to prepare for a tender to select an advisor, as soon as the Economic Development and Trade Ministry selects their candidate to be a member of the commission, we would switch to the creation of tasks for the advisor and tender conditions,” he wrote on his Facebook page.
Trubarov said that synchronously the fund jointly with international advisors is looking for ways to restructure debts of the company.
As reported, Public joint-stock company Ukrtransgaz has appealed to the National Police of Ukraine asking to interfere in the situation with rapidly growing debts of Odesa Port-Side Plant.
According to Ukrtransgaz, the amount of debt owed to Ukrtransgaz for the services of gas balancing for the needs of the Odesa Port-Side Plant, which was provided to the Ukrainian Energy Company, increased by another UAH 500 million only in April. In addition, the plant has its own debt to the company in the amount of UAH 473 million.

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TECHAGRO PLANS TO BUILD THREE TERMINALS IN UKRAINE IN 2019 WORTH $198 MLN

Techagro LLC plant to build three terminals – grain, container ones and a terminal for bulk and break-bulk cargos – totally worth $198 million at the Yuzhny maritime merchandise port (Odesa region), the Center for Transport Strategies has reported, referring to Director of Techagro Viacheslav Boyalsky. According to him, the company owns an 82-hectare land parcel at the entrance to the Yuzhny port water area with a berthing front of 280 running meters and a depth of about 17 meters, which will make it possible to service ships with a carrying capacity of 150,000-170,000 tonnes. “According to the estimate and financial preliminary calculation it requires $198 million of investment. The first thing that we will build is railroad, power lines and water pipelines, which will cost us $6.2 million. We plan to complete the works in 2019 to provide the site with utilities networks,” Boyalsky said.
The construction of the grain terminal is scheduled to begin in 2020, its launching in 2021. According to preliminary data, at the initial stage the grain terminal will handle 4.5 million tonnes per year, including 400,000 tonnes of flour and 200,000 tonnes of vegetable oil.
The container terminal, which Techagro plans to build, will have a capacity of 2 million tonnes and will cover an area of 22 hectares. The terminal for bulk and break-bulk cargo is planned to handle 2-2.5 million tonnes per year. To avoid dust, it will be equipped with two covered tunnels.

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LARGE GAS PROCESSING COMPANY UKRGAZVYDOBUVANNIA HAS A SLIGHT RISE IN PRODUCTION

JSC Ukrgazvydobuvannia in January-May 2018 increased gas production by 1% or 0.063 billion cubic meters (bcm) year-over-year, to 6.288 bcm, the company’s press service reported last week. The press service said that this production volume in the first five months of the year was reached for the first time since 2014. “For the fourth consecutive month, the company has been increasing daily gas production within the limits of 1 million cubic meters due to all types of operational activity, but since the existing resource base of the company is almost 70% depleted, the natural decline exceeds the growth. The non-issue of new licenses hinders the development of the new resource base of Ukrgazvydobuvannia,” the head of the company, Oleh Prokhorenko, said.
At the same time, he said that the company from the end of this month overcame the May negative factor and moved to the actual increase in daily production compared to last year.
The press service said that in the third and fourth quarters of 2018, Ukrgazvydobuvannia plans to launch new technological capacities: eight booster compressor stations, an increase of up to 50 tools for work-out of wells of external contractors, ten coiled tubing and nitrogen units, and the launch of new wells of external drilling contractors.
Ukrgazvydobuvannia, which is wholly owned by NSJC Naftogaz Ukrainy, is a large gas processing company, which accounts for about 75% of total gas output in the country.

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