Production of nitrogen fertilizers in Ukraine in 2020 increased 35% compared to 2019, to a record 5.1 million tonnes in five years, including the production of urea increased by 47%, ammonium nitrate – by 8%, urea-ammonium mixture – by 29%, the Association Ukrainian Agribusiness Club (UCAB) has reported on its website.
According to its data, there are five large plants producing nitrogen fertilizers in Ukraine: three plants of the Ostchem Group (in Cherkasy, Rivne and Severodonetsk), the Dniprovsky Plant of Mineral Fertilizers, a part of JSC Ukragrokhimholding, and the state-owned Odesa Port-Side Plant.
UCAB said that the plants of the Ostchem Group belonged businessman Dmytro Firtash last year produced two thirds of all nitrogen fertilizers in Ukraine, while the largest increase (2.5 times compared to 2019) was shown by the Severodonetsk plant and the Odesa Port-Side Plant.
According to the words of UCAB Director General Roman Slasten posted on the website, the growth in nitrogen fertilizer production is associated with the relatively low price of natural gas in 2020, a complete embargo on mineral fertilizers from the Russian Federation, as well as high demand for these products in the domestic and foreign markets.
According to the expert, Ukrainian agricultural producers continue paying additional margins to the domestic producer, since prices for nitrogen fertilizers in Ukraine last year were 15-25% higher than export prices.
“The only restraining factor in price growth in our monopolized fertilizer market is the availability of imports from Belarus, the EU countries and from other trade partners of Ukraine,” Slasten said.
In addition, imports of nitrogen fertilizers to Ukraine in 2020 more than halved, to 816,000 tonnes in kind and to $152 million in monetary terms due to the growth of domestic production. The largest share of imports (46.7%) was occupied by ammonium nitrate.
According to UCAB, the geography of fertilizer importers changed with the introduction of a complete embargo on mineral fertilizers from the Russian Federation in 2019. Ukraine in 2020 imported nitrogen fertilizers from 32 countries. The largest suppliers were Belarus with a share of 29%, followed by Poland with 23%, Georgia with 13%, Lithuania with 10%, Bulgaria with 10%, and Kazakhstan with 6%.
British-based Ferrexpo Plc, which in Ukraine, in particular, controls Poltava and Yeristovo ore mining and processing plants (Poltava GOK and Yeristovo GOK), intends to increase production of direct reduction (DR) pellets which are higher grade (67% Fe) in 2021.
In 2020, the group increased production of high grade (65% Fe or above) iron ore pellets to 99% of total output, up from 96% in 2019, according to an annual report released by the company on the London Stock Exchange on Wednesday.
In addition to this, the group has also started production of direct reduction (DR) pellets, which have a higher grade (67% Fe) and less impurities than other types of iron ore pellets.
“DR pellets are expected to represent the future of global steel production, as steelmakers transition to the production of carbon-free Green Steel, with DR pellets the primary source of virgin iron utilized in this process. The Group continues to develop its offering of DR pellets, production of which is possible through the Group’s existing production facilities, with two trial cargoes in 2020, and a further four trial cargoes planned for 2021,” the group said in the report.
The group also continues to utilize sunflower husks as a biofuel in its pelletiser, as a substitute for natural gas. This project has been in place since 2015, and usage has steadily increased as the Group optimizes the usage of husks in its pelletisers. In 2020, the Group successfully increased usage to 25% of the total energy consumed in the pelletiser (2019: 22%).
In 2020, the company increased its processing activities in the beneficiation plant increased by 4% to 30 million tonnes in 2020, following the implementation of new processing capacity in the second half of 2020.
Expectations for processing in 2021 are for a further increase as operations realize a full year at the plant’s newly expanded processing capacity. The Group is also progressing construction of its concentrate stockyard, press filtration and medium-and fine-crushing projects, which are collectively expected to provide additional operational flexibility in processing.
According to the report, the cost of production in 2020 decreased by 13%, to $41.5 per tonne from $47.8 per tonne. The decrease in costs was mainly attributable to falling commodity prices, in particular oil prices, lower electricity prices and the weakening of hryvnia.
The company’s gross debt as of December 31, 2020 was $266 million, up from $412 million at the end of 2019.
Ferrexpo sold pellets and concentrate in 2020, in particular, in Austria for $356.461 million (in 2019 for $331.964 million), in Germany for $145.311 (in 2019 for $168.875 million), in Japan for $78.786 million ($161.186 million), to China for $908.949 million ($347.892 million), to Turkey for $82.514 million ($62.717 million), to the United States for $34.236 million (there were no supplies in 2019).
The company’s annual meeting is scheduled for May 27, 2021.
A large producer of sausages and semi-finished meat products PrJSC APK-Invest (Donetsk region) in 2020 reduced its net profit by 1.9 times compared to 2019 – to UAH 372.37 million.
According to the company’s statement in the information disclosure system of the National Commission for Securities and Stock Market of Ukraine, its assets for the year increased by 7.1% – to UAH 7.03 billion, and retained earnings increased by 5.7% – to UAH 4.34 billion.
The total accounts receivable of the PrJSC at the end of the year increased by 6.2% – up to UAH 1.12 billion.
According to the report, at the annual meeting of shareholders on April 17, it is planned to receive approval for the accrual and payment of dividends, which will amount to 62% of the net profit amount – UAH 232.05 million, and the balance of funds will be transferred to the amount of retained earnings.
According to the Unified State Register of Legal Entities and Individual Entrepreneurs, the ultimate beneficiaries of PrJSC APK-Invest are Ukrainian businessman and politician Borys Kolesnykov and his wife Svitlana Kolesnykova.
A meeting between President of Ukraine Volodymyr Zelensky and President of the Republic of Lithuania Gitanas Nauseda, who will pay an official visit to Ukraine, will take place on Thursday, March 18, the press service of the President of Ukraine reported.
The official welcoming ceremony will begin at 11:00 at the Mariyinsky Palace.
The signing ceremony of the Ukrainian-Lithuanian bilateral documents is scheduled for 13:10, and at 13:25 the presidents of Ukraine and the Republic of Lithuania will meet with media representatives.
Insurance company Kniazha Life Vienna Insurance Group (Kyiv) in 2020 collected UAH 277.247 million in insurance premiums, which is 5.13% more than a year earlier, according to a posting on the website of the Standard-Rating agency.
The agency has affirmed the financial reliability/credit rating of the insurer at “uaAA +,” guided by the results of 2020.
During the year, insurance payments and compensations by the company amounted to UAH 20.252 million, which is almost twice the amount of payments made in 2019. Thus, the level of payments increased from 13.84% to 26.22%, or by 12.38 percentage points.
The insurer’s acquisition costs amounted to UAH 10.826 million, which is 33.57% less than in 2019.
The net profit of PrJSC Kniazha Life Vienna Insurance Group last year amounted to UAH 13.554 million, which is 2.82 times higher than the figure for the previous year.
The company’s assets as of December 31, 2020 grew by 30.49%, to UAH 582.887 million, equity – by 60.17%, to UAH 95.278 million, liabilities – by 25.92%, to UAH 487.609 million, cash and their equivalents fell by 63.60% to UAH 31.091 million due to reallocation of funds into current financial investments, which expanded by 90.8%
As of the beginning of 2021, the insurer’s equity capital was 19.54% covered by its liabilities, and 6.38% of liabilities were secured by cash and cash equivalents. As of January 1, 2021, it formed noncurrent and current financial investments in the amount of UAH 497.672 million, which consisted of 34.91% of bank deposits (UAH 173.749 million) and 64.83% of government bonds (UAH 322.661 million).
Vienna Insurance Group is represented in Ukraine by Ukrainian Insurance Group, Kniazha Vienna Insurance Group and Kniazha Life Vienna Insurance Group.
Ukrainian Defense Minister Andriy Taran, during his working visit to Japan, held talks with Minister of State for Foreign Affairs of this country Takashi Uto, during which Japan reaffirmed its unwavering support for the territorial integrity of Ukraine and its readiness to continue promoting economic development and reforms.
“The talks between Minister of Defense of Ukraine Andriy Taran and Minister of State for Foreign Affairs of Japan Takashi Uto have just ended. The frank conversation lasted an hour. Japan confirmed its unwavering support for the territorial integrity of Ukraine and its readiness to continue promoting economic development and reforms,” Ukrainian Ambassador to Japan Serhiy Korsunsky wrote on Facebook on Wednesday.
According to him, Taran and Uto discussed security issues in East Asia and Donbas, Japan’s participation in the Crimean Platform summit, and the threats that states face.
Also, Taran will have a meeting with Minister of Defense of Japan Mr. Nobuo Kishi.
As reported, Taran’s working visit to Japan began on March 16.
