PrJSC Ukrainian Graphite (Ukrgraphite, Zaporizhzhya) is trying to reduce energy consumption and improve efficiency by purchasing and installing modern equipment.
According to the interim report of the company’s management, the gradual improvement of manufacturing technologies to improve the quality characteristics of carbon graphite products has made it possible to produce products that are competitive and in demand on the global market.
Nevertheless, over the past three years, there has been a reduction in production and partial shutdown of steel, electric steel and ferroalloy producers in Ukraine that are consumers of Ukrgraphite’s products. Therefore, the volume of sales to the foreign and domestic markets decreased compared to the previous years.
“In order to optimize risks, we are setting up new logistics routes that allow us to plan timely delivery of raw materials and consumables to the plant and finished products to end consumers. One of the challenges is the shortage of skilled workers and engineers involved in the continuous cycle of metallurgical production. This is primarily due to the mobilization of employees, women with children going abroad and internal migration in the country,” the management report states.
Nevertheless, the company continues to operate, accept orders, manufacture products, upgrade production facilities, pay taxes and provide resources for Ukraine’s recovery.
At the same time, it is specified that today the production of products is carried out in the context of the energy crisis, which requires additional measures to improve energy efficiency for the smooth operation of the enterprise. The main areas of work in 2024 include the reconstruction of a commercial natural gas metering unit and internal gas supply networks at the enterprise (to reduce additional charges during low gas consumption). Engineering works were completed and the project was agreed with Zaporizhgaz JSC, civil defense and EIA projects were developed, and in May-July, the company purchased inventory for installation works, including imported equipment.
In August 2014, installation works were started; a steam boiler with a nominal steam capacity of 5 tons per hour was purchased and installed to ensure steam generation in the required quantity for the production of pressed products. Commissioning of the boiler will allow saving up to 40% of gas when the boiler house operates in autonomous mode. All equipment was installed, connected to the existing power supply networks and put into pilot operation.
The company also reconstructed the Graphite substation, installing and connecting new voltage and current transformers.
“Ukrgraphit’s management is taking all the necessary measures to maintain the stability and development of the company in the current conditions in the country and the economy. (…) The main important events, risks and uncertainties that occurred during the reporting period and affected the financial statements are: uncertainty about the timing of the end of the special martial law regime; disruption of production and logistics routes, destruction of infrastructure, limited inventories and import and export opportunities; energy crisis; staff shortages; economic and legal risks; significant currency appreciation, etc.”, the report summarizes.
As reported, Ukrgraphite ended the first nine months of 2024 with a net loss of UAH 118.074 million, while in the same period of 2023 it made a net profit of UAH 128.230 million. Net income for the period decreased by 18.4% to UAH 1 billion 79.194 million. As of the end of September this year, the company’s retained earnings amounted to UAH 3 billion 755.517 million.
“In 2023, Ukrgraphite increased its net profit by 2.34 times compared to 2022 to UAH 122.941 million, and net income by 1.2% to UAH 1 billion 564.656 million.
“Ukrgraphite is Ukraine’s leading producer of graphitized electrodes for electric steel-making, ore-thermal and other types of electric furnaces, commercial carbon masses for Soderberg electrodes, and carbon-based lining materials for metallurgical, machine-building, chemical and other industries.
According to the National Depository of Ukraine (NDU) as of the second quarter of 2024, Intergraphite Holdings Company Limited (Bermuda) owns 23.9841% of the company, and C6 Safe Group Limited (Cyprus) owns 72.0394%.
The authorized capital of the company is UAH 233.959 million, with a par value of UAH 3.35 per share.
