PrJSC Dyckerhoff Cement Ukraine (Kyiv) in 2019 increased its net profit by five times compared to 2018, to UAH 814.2 million.
According to a company report in the information disclosure system of the National Commission on Securities and the Stock Market regarding a meeting of shareholders scheduled for March 24, net profit per share in 2019 amounted to UAH 5.1.
Uncovered loss amounted to UAH 387.2 million, while a year earlier the company’s retained earnings amounted to UAH 1.18 billion.
Total debtor indebtedness decreased by 1.6%, to UAH 108.6 million, long-term liabilities by 21.4%, to UAH 1.32 billion, current liabilities by 38.8%, to UAH 355.5 million.
In 2019, the company increased its assets by 8.7%, to UAH 2.65 billion.
Dyckerhoff Cement Ukraine is one of the largest cement plants in Ukraine. The company is owned by Germany’s Dyckerhoff GmbH (99%).
The State Service of Ukraine for Food Safety and Consumers’ Rights Protection has temporarily banned the import of domestic and wild animals from China to prevent the entry of coronavirus into Ukraine. “To minimize the risks of introduction of the pathogen Covid-19 into the territory of Ukraine, in accordance with Articles 33 and 96 of the law of Ukraine on veterinary medicine, taking into account the recommendations set out in the OIE Terrestrial Animal Health Code, the service temporarily prohibited the import to Ukraine from China of domestic animals (dogs, cats, etc.) and wild carnivores,” the press service of the agency said.
The agency also added that according to official information from the World Organization for Animal Health (OIE) in Hong Kong (China), a SARS-CoV-2 disease of an animal (dog) was recorded.
“The State Service for Food Safety and Consumers’ Rights Protection constantly monitors the situation with animal diseases in the world,” it said.
Official rates of banking metals from national bank as of March 03
One troy ounce=31.10 grams
National bank of ukraine’s official rates as of 03/03/20
Source: National Bank of Ukraine
Anti-trust agency opens case against Naftogaz for setting prices for households too high
The Antimonopoly Committee of Ukraine (AMC) has opened a case about the possible abuse of monopoly position by Naftogaz Ukrainy when setting natural gas prices for the population from November 1, 2018, the committee’s website reports.
The AMC reported that Naftogaz has special obligations to sell gas to domestic consumers (the public). At the same time, the company sets prices in this market segment based on the price of gas for industry, which it offers.
According to information available to the committee, Naftogaz set prices for industrial consumers higher than those established in a competitive environment, in particular, according to the results of electronic exchange trading on the Ukrainian Energy Exchange and on European hubs with the condition of gas delivery to the Ukrainian border (NCG).
“This may indicate the establishment by Naftogaz Ukrainy from November 1, 2018 of prices for natural gas for the population at a level that could not be established if there was significant competition in the natural gas markets,” the statement said.
Captive companies as a form of doing insurance business have some advantages, in particular, allow enterprises of the group that controls them to save money thanks to the reduction of the size of insurance premiums, Director General of Insurance Business association Viacheslav Cherniakhovsky said during the XVI International Carpathian Insurance Conference. In addition, he said, captive companies have the ability to establish the amount of risk remaining for them, and transfer to reinsurance only that part of it that they cannot cover on their own. In addition, they have an opportunity of placing part of the assets covering insurance reserves at the enterprises of their group.
The format of a captive insurance company also helps to better protect the business interests of holding companies or groups, in particular, to keep secret information about technological, production and business processes, innovations, Cherniakhovsky said.
According to the director general of the Insurance Business association, it would be advisable to legally determine the status of a captive insurance company, thus giving impetus to the development of this segment of the Ukrainian insurance market.
In his opinion, for this it is necessary to define the concept of “captive insurance company” in the new version of the law on insurance, determine the circle of counterparties (policyholders) with whom the captive insurer has the right to work on the basis of its declaration and reduce or limit the requirements for prudential supervision, similar to what is now happening in Europe, where industry structures believe that scenario analysis and stress testing are unnecessarily complex and burdensome for small and captive insurance companies.
“The main task is to choose the right model for the transformation of the Ukrainian insurance market for its development for the next decades. This applies to both the transformation of the legislative framework and regulatory policy, and the change in business models and the work of insurers,” he said.
Cherniakhovsky also highlighted a number of pan-European insurance trends that affect the situation and prospects of the industry. In particular, according to him, the requirements of the Solvency II Euro Directive turned out to be stringent even for European markets and are being revised towards mitigation, and the state and indicators of the Ukrainian insurance market differ from European countries: the insurance premium per capita in the country is less than EUR 50 per year, while the average per capita insurance payment in Europe is EUR 2,200 (data for 2017). In addition, in recent years, Ukraine has also experienced a sharp decrease in the number of insurance companies – from 407 in 2013 to 234 in 2019.
“In the current situation, insurance companies are forced to choose the right transformation model, which allows them to maintain their place in the market and provide resources for development. Among the possible options for transformation are closing or selling a business, transforming the insurance company into an intermediary, enlarging insurance company (M&A), converting to a captive insurance company,” he said.
