The agro-industrial group Kernel is negotiating with its creditors to defer the repayment of debt obligations that have grown to a record high since the beginning of the Russian military invasion of Ukraine – up to $1.95 billion as of June 30, 2022, which is 37% more than its amount as of the same date in 2021 of the year.
According to a financial report on the holding’s website on Wednesday night, this increase in debt was mainly due to a sharp increase in short-term debt raised to replenish working capital in the winter of 2021-2022 and outstanding by the summer of 2022 due to Russian aggression and related with it negative factors.
According to the group of companies, its net debt obligations by June 30, 2022 increased by 1.8 times compared to the same date last year – to $ 1.49 billion, and the ratio of debt to EBITDA jumped to a record five-year ratio of 6.8x compared to 1.0x in 2021.
“The Russian invasion began just at the peak of our working capital cycle, when we had the highest seasonal debt level of $1.95 billion in the history of the company and an all-time high inventory of $0.9 billion. Fortunately, we entered into this is a turbulent time in a relatively good financial condition, so we continued to service our debt, but we were forced to negotiate a deferral of repayment of the principal debt to creditors,” the holding said in a statement.
Kernel recalled that the first such negotiations allowed it to defer the repayment of the principal amount of the debt until September 30, 2022, and now it is negotiating to extend the delay until June 30, 2023.
“As of the day of this report, we received refusals to extend the maturity of the principal debt in the amount of $627 million with creditors until June 30, 2023. For debt obligations totaling $246 million, we are in the process of issuing such refusals,” the holding emphasized in the report .
Kernel specified that in December 2021 it completed the early redemption of Eurobonds for $213 million, reducing the total amount of Eurobonds maturing in 2022 to $595 million.
“Due to the fact that the group did not have an unconditional right to defer settlements of 12 months or more in relation to its banking services as at June 30, 2022, $198 million of long-term bank loan balances and $595 million of Eurobonds outstanding were reclassified as short-term as of June 30, 2022,” the holding said in a statement.
Also, according to him, by June 30, 2022, Kernel pledged 370,000 government bonds of Ukraine in the amount of $6.08 million as collateral for previously taken short-term loans.
“While we have completed one of the most difficult periods in our history, the prospects for the future remain unclear and will greatly depend on the outcome of the war in Ukraine and the group’s ability to export agricultural products through the Black Sea ports of Ukraine,” the holding stated.
Before the war, Kernel ranked first in the world in the production of sunflower oil (about 7% of world production) and its export (about 12%), and was also the largest producer and seller of bottled sunflower oil in Ukraine. In addition, the company was engaged in the cultivation of other agricultural products and their sale.
The largest co-owner of Kernel through Namsen Ltd. is Ukrainian businessman Andrey Verevsky with a share of 39.3%.
In January-September 2022, PJSC Insurance Guarantees of Ukraine (SGU) collected UAH 339,000 of gross premiums, which is 92.8% less than in the same period in 2021, follows from the information of the Expert Rating rating agency on confirmation financial strength rating of the insurer/credit rating on the national scale at the level of “uaAA” based on the results of its work for the specified response period.
At the same time, it is noted that the decrease in the insurer’s gross premiums in the analyzed period of 2022, among other things, is associated with the specialization of PJSC “SGU” in cargo insurance and with a significant reduction in the transportation of those in need of insurance due to the Russian attack and the introduction of martial law in Ukraine.
As of September 30, 2022, the company’s equity increased by 0.24% to UAH 37.47 million, while its gross liabilities increased by 17.66% to UAH 19.09 million. As a result, there was a decrease in the ratio between equity and liabilities by 34.13 percentage points. up to 196.31%.
The volume of cash and cash equivalents on SGU accounts amounted to UAH 50.03 million, and the level of cash coverage of the insurer’s obligations decreased by 20.23 percentage points. up to 262.15%.
The company’s financial results for the first nine months of 2022 improved compared to the same period in 2021. In particular, for the first three quarters of 2022, the insurer received a net profit of UAH 0.26 million compared to a loss for the nine months of 2021, and the amount of damage from operating activities also decreased.
The RA notes that, according to the reporting provided by the insurer, as of September 30, 2022, the company complied with the criteria and standards established by law for solvency and capital adequacy, liquidity, profitability, asset quality and riskiness of the insurer’s operations.
PrJSC “SGU” was registered in November 2005. It has licenses to carry out 15 types of insurance activities, including four – for the implementation of compulsory types of insurance, 11 – voluntary insurance.
TAS Insurance Group (Kyiv) in October paid 33.6% less insurance claims under concluded insurance contracts than in October a year earlier – UAH 63.25 million against UAH 95.24 million, respectively, according to the insurer’s website.
At the same time, almost a third of all payments by the insurer in October – 30.12%, or UAH 19.06 million – fell on CASCO, 44.9%, or UAH 28.4 million – on OSAGO.
Under the Green Card policies, UAH 4.11 million, or 6.5% of the company’s total payments in October of this year, were reimbursed.
At the same time, the share of VHI, for which UAH 9.56 million was paid in the reporting month, amounted to 15.12% in the company’s payment portfolio for this period.
Under other insurance contracts, IG “TAS” paid UAH 2.12 million in October.
During the period of martial law in Ukraine, the number of enterprises producing products of animal origin that have the right to export their products to the territory of the European Union has increased, their number increased by 33 (or 8.5%) compared to the winter of 2021 – up to 418 from 385.
As reported on the website of the State Service of Ukraine for Food Safety and Consumer Protection (Gosprodpotrebsluzhby) on Tuesday, the number of Ukrainian exporters of dairy products increased the most – by 11, fish products – by six, snails and products from them – by five.
“The Association Agreement between Ukraine and the EU, which was concluded in 2014 and entered into force in 2017, provides an opportunity for Ukrainian manufacturers to significantly expand sales markets. The start of Russian aggression did not stop this process, in particular, due to the abolition of duties for Ukrainian goods on territory of the EU for a period of one year, starting from June 4 of the current year.
According to him, among the Ukrainian exporters of products intended for human consumption, there are 72 producers of bee honey, 40 – dairy products, 37 – fish products. Among the exporters of products not intended for human consumption, down and feathers are most exported to the EU – 67, casein – 49, raw hides – 46.
The State Food and Consumer Service recalled that in order to export food products of its own production to the EU, a business entity must submit a request to the territorial body of the Service for approval of export capacities in accordance with Order No. 38 of the Ministry of Agrarian Policy dated February 10, 2016.
Israeli President Yitzhak Herzog on Sunday officially instructed right-wing leader Benjamin Netanyahu to form a government, the Jerusalem Post reported.
Netanyahu arrived at the Duke’s official residence on Sunday, where the official handover ceremony took place.
Now Netanyahu has 28 days to form a new government in the country. If he fails to complete the task on time, he may ask for an additional 14 days. If he fails to meet the extra time, then the president can transfer the mandate to another candidate.
However, with a high probability, Netanyahu will be able to achieve the approval of parliamentarians – there are 120 seats in the Knesset, among them the bloc of right-wing and religious parties has 64 mandates. The approval of 61 deputies is required for the Knesset to approve the composition of the government. Just 64 deputies recommended President Herzog to give a mandate to Netanyahu, and not to another candidate.
The fact that the mandate will receive Netanyahu, it became known earlier this week. He was in opposition for about a year and a half, but in the November 1 elections, his Likud party won the majority of votes, and together with other right-wing parties, he managed to win an advantage over the left that came to power in the previous elections.
Parimatch has joined the fundraising platform UNITED24. The company has already provided significant financial assistance and is now joining media support, featuring world sport stars.
By the end of the year, Parimatch plans to participate in several fundraising initiatives, as well as implement media activities with the Premier League football clubs. They will also work with UNITED24 and Parimatch ambassador, world champion boxer, Oleksandr Usyk.
“We will use all resources to ensure that European and global society, global brands and business giants join the projects launched by UNITED24. Talking about war today is everyone’s duty, especially those who can speak to a large global audience. Every vote is important, every project brings victory closer,” commented the general director of Parimatch Ukraine Nataliya Gilevych.
“The company Parimatch Ukraine has already supported the fundraising of First Lady Olena Zelenska and UNITED24 for ambulances. We are glad that this activity has transformed into systemic cooperation,” said UNITED24 coordinator, Yaroslava Gres. “It is increasingly difficult to fight for the world’s attention after almost 9 months of war, the great media opportunities that Parimatch Ukraine has will help UNITED24 to sound louder and be more effective in helping Ukraine.”
