Business news from Ukraine

Business news from Ukraine

UKRAINE CUTS PIPE PRODUCTION IN 2020

The main pipe enterprises of Ukraine in 2020 reduced the production of pipes from ferrous metals, according to recent data, by 16.3% compared to the previous year, to 854,000 tonnes, including 71,000 tonnes produced in December.
As the Ukrtruboprom association told Interfax-Ukraine, in particular, the enterprises of the association last year reduced the production of pipes by 24.8%, to 538,000 tonnes, including 44,000 tonnes produced in December.
At the same time, according to preliminary data, the output of pipes at Interpipe Nyzhniodniprovsky Pipe Rolling Plant for the specified period fell by 33.7%, to 145,000 tonnes (in December it was 15,300 tonnes), at Interpipe Novomoskovsk Pipe Plant by 23.9%, to 78,600 tonnes (4,600 tonnes). Interpipe Niko Tube cut production by 16.5%, to 293,700 tonnes (22,200 tonnes).
Dnipropetrovsk Pipe Plant produced 300 tonnes of pipes, while in 2019 it produced 17,600 tonnes of these products. Centravis cut production by 9.3%, to 19,050 tonnes of stainless pipes (1,600 tonnes).
Trubostal plant reduced its output by 42.9%, to 1,600 tonnes of pipes (100 tonnes).
Mariupol Illich Iron and Steel Works, which is not included in the association Ukrtruboprom, reduced pipe production by 4.2%, to 151,600 tonnes (in December it was 12,300 tonnes), while Kominmet increased by 12.2%, to 164,600 tonnes (14,900 tonnes).
Earlier, Ukrtruboprom said that in 2019 Ukraine reduced the production of pipes by 9.1% compared with 2018, to 1.002 million tonnes. Including the enterprises of the association reduced the production of pipes by 10.2%, to 715,100 tonnes.

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SHOPPING CENTERS OF BUDHOUSE GROUP REDUCE TURNOVER BY 11%

Budhouse Group investment and development group of companies (BHG, Kyiv) in 2020 reduced the turnover in its shopping and entertainment centers Fabrika (Kherson), Liubava (Cherkasy) and Forum Lviv (Lviv) by 11%, while in 2019 the increase was 12.8%, the company’s press service said on Thursday.
“Compared to 2020, the turnover of shopping centers in hryvnias has significantly decreased. If in 2018 the average growth was 23.3%, and in 2019 it amounted to 12.8%, then in 2020, for obvious reasons, this figure decreased by 11%. The total turnover of Budhouse Group shopping centers in 2020 amounted to about UAH 6.8 billion,” the developer’s press service said.
According to it, the smallest drop in trade turnover (by 2.6%) was recorded in the Liubava shopping and entertainment center.
According to the group, traffic to shopping centers in 2020 decreased by 28% compared to the previous year, to 19.4 million people. In addition, visitors spent 16% less time in the malls due to restrictions on the operation of entertainment zones.
The average vacancy rate for the group’s malls was 0.6% over the year, with the lowest rate (0.3%) recorded in the Forum Lviv mall. The company also signed 30 new lease agreements for premises with a total area of 6,500 square meters versus 40 contracts for 3,100 square meters in 2019.
The rotation of tenants decreased compared to 2019 and was mainly due to the difficult economic situation. The largest transactions were concluded with LC Waikiki and Budynok Ihrashok in the Liubava shopping and entertainment center.
Budhouse Group LLC was established in 2006. It is the owner and developer of commercial, office, hotel and residential real estate in Kyiv, Lviv, Cherkasy, Kherson, Odesa, Kharkiv, and Zaporizhia.
The charter capital is UAH 95.1 million.

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KERNEL INCREASES SALES OF SUNFLOWER OIL BY 23%

Kernel, one of the largest Ukrainian agrarian holdings, in the second quarter of 2021 fiscal year (FY), which started in July 2020, increased sales of sunflower oil by 23% compared to the same period of the previous FY, to 425,340 tonnes.
According to a report published on the website on Thursday, sales of bottled sunflower oil for the period amounted to 9.1% of total sales (in the same period previous FY it was 8.4%).
In October-December this year, the holding’s oil extraction plants processed 1 million tonnes of oilseeds, up 5% from the second quarter of 2020 FY. The company said that this is a record high indicator for the quarter.
The report said that grain exports from Ukraine in the first quarter of 2021 FY increased by 6%, to 2.4 million tonnes, of which 52% from external suppliers, the rest was produced by the company’s agricultural divisions.
Grain transshipment at export terminals in Ukraine in the specified period increased by 41%, to 2.38 million tonnes. As the company said, this is due to the increase in transshipment volumes at the new Kernel export terminal in Chornomorsk seaport. The volume of grain received by the company’s elevators increased by 17%, to 2.38 million tonnes, but in general for the first half of the year it decreased by 9%, to 3.63 million tonnes due to a decrease in the harvest this season.
In general, in the first half of 2021 FY, the company increased oilseed processing by 5%, to 1.66 million tonnes, oil exports by 11%, to 721,580 tonnes, grain transshipment at export terminals by 47%, to 4.25 million tonnes and grain exports by 16%, to 4.52 million tonnes.
Kernel ended 2020 fiscal year (FY, July 2019-June 2020) with net income of $123 million, less by 31% compared to 2019 FY. Its revenue grew by 4%, to $4.11 billion, and EBITDA by 28%, to $443 million. The company’s net debt in 2020 FY grew by 41%, to $980 million.
Kernel is a producer and exporter of sunflower oil. It operates in such business segments as production, export and domestic sales of sunflower oil, crop production, export of grain crops, provision of services for storage and transshipment of grain at elevators and in port terminals.

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INTERPIPE CUTS PRODUCTION IN 2020

The international vertically integrated pipe and wheel company Interpipe in 2020 reduced steel output by 11.2% compared to the previous year, to 758,700 tonnes.
According the company’s monthly report, the production of pipes in 2020 decreased by 20.9%, to 464,000 tonnes and the production of railway products, by 8.3%, to 190,600 tonnes.
In December, steel output amounted to 61,800 tonnes, output of railway products to 16,500 tonnes, and pipes to 38,400 tonnes.
It is also reported that in 2020 pipes were sold in Europe (29%), the MENA (Middle East and North Africa) region (24%), Ukraine (22%), the CIS (11%), the American continent (11%) and other regions (3%). In December, pipes were sold in Europe (21%), Ukraine (28%), the MENA region (20%), the CIS (9%), the American continent (18%) and other regions (4%).
Railway products last year were sold in the CIS (43%), Europe (35%), Ukraine (14%), the MENA region (4%), the American continent (3%) and other regions (1%). In December, railway products were sold in the CIS (46%), Europe (27%), Ukraine (16%), the MENA region (5%), the American continent (5%) and in other regions (1%).
According to Interpipe’s commentary, sales of most of the company’s products rose in December amid a recovery in the global economy and markets, despite stricter lockdowns in some countries.
Total pipe sales in December 2020 grew 37.2% compared to November 2020, surpassing pre-coronavirus (COVID-19) monthly sales in the fourth quarter of 2019 and the first quarter of 2020. However, year-over-year sales for the 12 months of 2020 were still lower, less by 21% compared to 2019.
Oil country tubular goods (OCTG) sales, after a 142.4% rise in November versus October, grew by 29.8% compared to November amid intensive drilling activity worldwide and optimistic expectations for COVID-19 vaccines and exceeding the threshold of $50 per barrel of crude oil for the first time since March 2020.
Sales of general purpose pipes in December increased by 8.1% versus November due to sales growth in Turkey, the United States and Belarus, while sales of welded pipes fell by 34.1% compared to November in all regions due to unfavorable market conditions.
At the same time, sales of railway products in general over the past year decreased by 5.4%. At the same time, it is noted that the total sales of wheelsets in 2020 increased significantly by 32%.
Interpipe is a Ukrainian industrial company, a manufacturer of seamless pipes and railway wheels. The company’s products are supplied to more than 80 countries around the world through a network of sales offices located in the key markets of the CIS, the Middle East, North America and Europe.

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UKRAINIAN ENTERPRISES IN 2020 INCREASE CONSUMPTION OF ROLLED METAL

Ukrainian enterprises in 2020 increased the consumption of rolled metal by 4.4% compared to the previous year, to 4.904 million tonnes.
According to a press release from the Ukrmetalurgprom association, in 2020, some 1.228 million tonnes, or 25.4% of the domestic market for the consumption of rolled metal were imported.
“For the period January-December 2020, the capacity of the domestic market amounted to 4.904 million tonnes of rolled metal, of which 1.228 million tonnes, or 25.4%, accounted for imports. For the same period of 2019, the capacity of the domestic market was 4.697 million tonnes, of which 1.419 million tonnes, or 30.2%, were imported. Thus, for the 12 months of 2020, there is an increase in the capacity of the domestic market of rolled metal by 4.4% compared to January-December 2019, with a simultaneous a decrease in the import share by 5.2%,” the press release said.
In addition, it is reported that the import structure of 2020 is characterized by the domination of flat-rolled products over long products (55.84% and 42.93%, respectively), which is almost equal to the import structure in 2019 (some 55.21% and 41.87%, respectively).
According to Ukrmetalurgprom, in 2020, Ukrainian metallurgical enterprises produced 18.43 million tonnes of rolled metal (101.2% compared to 2019), of which, according to ETR-Spectr LLC, about 14.75 million tonnes or 80% were exported. In 2019, the export share was 82% (some 14.94 million tonnes with a total production of 18.21 million tonnes of rolled metal).
The share of semi-finished products in export deliveries in 2020 accounted for 50.77%, which is slightly higher than in 2019 (some 47.18%). Share of flat-rolled products in export deliveries in 2020 is almost equal to the indicator of 2019 (some 32.51% and 32.80% respectively). The share of long products in export deliveries last year is noticeably lower to the 2019 indicator (16.71% in 2020 versus 20.02% in 2019).
According to ETR-Spectr LLC, the main export markets for Ukrainian metal products in 2020 were the European Union (28.5%), other European countries (14.5%) and Asian countries (14.2%).
Among metallurgical importers in 2020 the first place is occupied by the CIS countries (38.5%), the second is the EU-28 (24.5%), and the third is Asian countries (20.5%).

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RATIO OF FERTILITY AND MORTALITY BY REGION AS OF JAN-OCT, 2020

Ratio of fertility and mortality by region as of Jan-Oct, 2020.

SSC of Ukraine

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