Business news from Ukraine

Business news from Ukraine

IC INGO notes recovery of demand for medicines and diagnostic services

In the second quarter of 2023 there is a noticeable recovery in the number of provided medicines after a decline in the winter period, which indicates a continuing trend of their increase compared to previous years, according to the press release of the insurance company “INGO” (Kiev).

It is also noted that the analysis of the popularity of services showed a continued increased demand for diagnostics since September 2022. At the same time consultations of doctors remain at a stable level without significant changes.

The other groups of services, although accounting for less than 20% of the total, do not show pronounced changes, with the exception of medical examinations, the demand for which has doubled in recent months compared to the preliminary figures.

According to the report, for the provision of medical services to its clients in the second quarter of 2023 paid UAH 110 million. The amount of payments for accident insurance programs has also increased.

According to the information of the Department of personal types of insurance, the average number of customer contacts is kept at a fairly high level – about 1.5 thousand contacts daily, but a little less than in the winter-spring period.

JSC INGO Insurance Company has more than 25 years of experience in the market. Since 2017, the main shareholder of the company is the Ukrainian business group DCH of Oleksandr Iaroslavskyi.

The company has 29 licenses for various types of compulsory and voluntary insurance, provides insurance services to corporate and retail clients.

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“NovaPay Credit” will issue second issue of bonds for UAH 100 mln

Credit institution NovaPay Credit LLC, a member of the non-banking financial group NovaPay, has decided to carry out the second issue of interest-bearing bonds – series “B” – for UAH 100 million.

According to the company’s message, the corresponding decision was made by the shareholders’ meeting on June 26 this year.

“NovaPay Credit” specifies that, as well as the debut issue of bonds of series “A”, the second issue will be public, and the company plans to place it independently.

It is specified that 20% of raised funds are planned to be directed to crediting of legal entities, 80% – individuals.

Information on other parameters of the issue is not yet available.

As reported, NovaPay Credit placed the debut issue of three-year bonds for UAH 100 mln in the second quarter. The bonds are issued with one coupon, which is paid simultaneously with maturity – from April 14 to April 20, 2026. The nominal yield is 20% per annum.

According to forecasts in the prospectus, the company plans to receive UAH 27.06 mln of net profit in 2023, UAH 242.23 mln in 2024, and UAH 411.66 mln in 2025.

As indicated in the prospectus, in 2022 the company’s revenue decreased by 40.6% to UAH 29.89 mln, largely due to the credit vacations introduced at the beginning of the war, and the net loss amounted to UAH 2.15 mln against a net profit of UAH 24.40 mln a year earlier.

In Q12023, NovaPay Credit increased its authorized capital by UAH 120 mln – up to UAH 175 mln.

The owner of the company with a 100% stake remains NovaPay LLC, and the beneficiaries are owners of Nova Posta group of companies Vyacheslav Klimov and Volodymyr Popereshnyuk.

The company increased its net profit by 56.9% to UAH 7.28 mln in January-March 2023 compared to the same period in 2022, while its revenue grew by 68.7% to UAH 12.7 mln.

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“Poninkivka Paperboard Factory-Ukraine” increased output of corrugated packaging by 31.6%

A major Ukrainian producer of corrugated cardboard – Poninkivska Cardboard and Paper Factory-Ukraine (“PKBF-Ukraine”, Khmelnytskyi region) in January-June 2023 increased the output of corrugated packaging by 31.6% compared to the same period of 2022 – up to 40.9 million sq. m.

According to statistical data provided to Interfax-Ukraine by the UkrPapir association, thus, the factory continues to be among the three Ukrainian leaders in the production of these products after Kyiv Cardboard and Paper Mill (108.2 mln sq.m.) and Tripillya Packaging Mill (65.4 mln sq.m.).

According to statistics, in January-June the production of paper at the mill increased by 3.8% to 0.3 thousand tons, containerboard – by 20.8% to 36.9 thousand tons.

At the same time, in June-2023 the production of corrugated boxes increased by 16.4% compared to June-2022 – up to 7.4 million square meters, and paper and cardboard production decreased by 7% – to almost 7 thousand tons.

According to the statistics of “UkrPapir”, in total, Poninkivska KBF-Ukraine for the first half of 2023 produced products worth UAH 1 billion 193 million – 19.7% more than a year earlier.

As reported with reference to the data collected by the association from the main enterprises of the industry, for six months of this year in Ukraine produced 260.55 thousand tons of paper and cardboard (9.8% more than in the same period last year), 239.31 million square meters of cardboard boxes (+18.3%).

Poninkovskaya Factory (formerly Poninkovsky Cardboard and Paper Mill), once the largest producer of school notebooks, now has one main production facility – paper and cardboard. It produces mainly corrugated cardboard and corrugated containers, as well as wrapping and waste paper.

The factory is part of the United Cardboard Company-Ukraine (UCC, Lutsk), whose production assets include, in particular, Lutsk KBF-Ukraine (Volyn region), which produced 28.4 thousand tons of various cardboard in January-June 2023 (according to UkrPapir) – 27.6% higher than in January-June 2022.

As reported, in 2022, Poninka CBF-Ukraine produced UAH 2 bln 446 mln worth of products – 6.5% more than a year earlier.

Zhidachevsky Pulp and Paper Mill increased its output by 14%

Zhidachevsky Pulp and Paper Mill (Zhidachevsky Pulp and Paper Mill, Lviv region) in January-June produced UAH 276.8 mln worth of products, which is 13.7% more than in the first half of 2022.

According to statistical data provided to Interfax-Ukraine by UkrPapir Association, in physical terms the output of corrugated packaging increased by 27% to 11.25 million square meters, containerboard – by 30.4% to 7.95 thousand tons, paper – by 26.8% to 2.18 thousand tons.

In June, the mill slightly reduced the output of paper and cardboard by June-2022 – to 1.61 thousand tons, corrugated packaging output remained at the last year’s level – 1.9 million sq. m. Compared to May of the current year, the output of these products decreased by 12.6% and 5% respectively.

ZPPM has the capacity of paper production (paper-base for corrugation, cardboard-liner, wrapping paper) – 43 thousand tons per year, cardboard production – 50 thousand tons, corrugated cardboard and corrugated packaging – 120 million square meters, molded containers (tray for 30 eggs) – 72 million pieces per year.

As reported with reference to the association’s data received from the main industry enterprises, in total, in January-June 2023, they produced 260.55 thousand tons of paper and cardboard (9.8% more), and 239.31 million square meters of cardboard boxes (+18.3%).

Zhidachevsky Pulp and Paper Mill produced UAH 510.8 mln worth of marketable products in 2022, up 23.1% year-on-year, with net profit up 67.5% to UAH 41.76 mln.

War in Ukraine has already claimed lives of 9.29 thousand civilians – UN

Civilian casualties from February 24, 2022, after Russia launched a full-scale war against Ukraine, to July 16, 2023, totaled 25,671 (25,170 as of June 30), including 9,287 deaths (9,177), the Office of the UN High Commissioner for Human Rights (UN OHCHR) reported.

“The UN OHCHR considers that the actual number of civilian deaths or injuries is significantly higher, as many reports from locations where such incidents have occurred continue to require further confirmation, while information from some locations where fighting continues has been delayed,” the document said regarding the UN data.

This applies, for example, to such localities as Mariupol (Donetsk region), Lisichansk, Popasnaya and Severodonetsk (Luhansk region), where numerous civilian deaths or injuries have been reported.

According to confirmed UN figures, 4,272 men, 2,558 women, 282 boys and 226 girls were killed, while the gender of 29 children and 1,920 adults could not yet be ascertained.

Among the 16,384 injured, 486 boys and 352 girls were injured, as well as 279 children whose gender could not yet be determined.

Compared to the June 30 figures, two children have died and 22 others have been injured.

Whereas the UN OHCHR casualty summary was previously issued daily and then only on weekdays, it became weekly from July 2022 and biweekly from the end of May 2023. This summary, like the previous one, provides data by month.

According to them, 74 civilians died in the first 16 days of July. In June, the number of deaths rose to 184 from 174 in May, 180 in April, 181 in March and 143 in February.

The deadliest month for civilians, the UN points out, remains March last year, with a minimum of 4,154 deaths. In April 2022, according to an OHCHR publication, the number of civilian deaths due to war fell to 817 in April, 544 in May, 429 in June and 385 in July. There were 374 deaths in the first five days of the war from February 24 to February 28, 339 in August, 405 in September, 309 in October, 187 in November, 206 in December and 201 in January this year.

The number of injured for the half of July reached 342, compared with 681 in June, 685 in May, 494 in April, 592 in March, 457 in February, 541 in January this year, 617 in December and 541 in November last year. In October, the number of injuries dropped to 795 from 982 in September, when it was up from August’s 920. Prior to that the number of wounded exceeded a thousand each month, July 1,129, June 1,108, May 1,139, April 1,896, March 2,999. In the first five days of the war last February, 469 people were wounded.

The UN OHCHR specifies that in July, large-area explosive weapons killed 72 people and injured 326 others, while mines and explosive remnants of war killed two and injured 16 (4%).

Government-controlled territories accounted for 88% of casualties in July, according to the UN.

The summary traditionally states that the increase in figures to the previous summary should not be attributed solely to cases after June 30, as during this period the Office verified a number of cases from previous days.

Volume of 3-month certificates of deposit has started to grow again and reached new peak

The National Bank of Ukraine (NBU) at the 15th auction for placement of three-month certificates of deposit (CDs) at 25% per annum on Friday, July 14, sold them for UAH 26.07 billion, while the volume of redemption of CDs placed at the second auction on April 14 amounted to only UAH 8.87 billion.

As reported on the NBU website, as a result, the volume of three-month DCs in circulation began to grow again and reached a new maximum of UAH 175.44 billion.

The number of buyers, as a week ago, amounted to 43, the regulator specified.

The central bank pointed out that last Friday the volume of overnight DS sales amounted to UAH 355.71 billion, compared to UAH 373.92 billion a week earlier. On the other days of last week, the NBU placed them in the amount of UAH 331.1-337.8 billion.

As reported, the National Bank said on March 16 that from April 7 it decided to lower the rate on overnight certificates of deposit from 23% to 20%, but at the same time to place DCs for a period of three months at a discount rate of 25%, depending on the volume of deposits attracted by banks for a period of three months or more.

On the eve of the debut auction, the NBU set for banks individual initial limits for the purchase of three-month DC at the level of 70% of the balances of individuals’ deposits in the national currency in these financial institutions as of April 4, with an initial term of 93 days or more.

The regulator explained that to the initial limit is added the second dynamic part – multiplied by the multiplier “3.0” increase in the volume of such a portfolio of hryvnia deposits of individuals for 93 days after April 4.

Banks can apply for purchase of three-month DS both from the NBU and in the interbank market within the above limit. The National Bank places them weekly on Fridays.

In the inflation report, the NBU specified that as of April 4, term deposits in the national currency for a period of three months or more were worth the equivalent of UAH 154.5 billion, or 26.9% of all deposits, for a period of up to three months – UAH 40.4 billion, or 7%, while UAH 378.4 billion, or 66%, accounted for demand deposits.

According to the head of the National Bank Andriy Pyshnyy, the share of term deposits reached 35% at the end of May, while the share of deposits with maturities of 3 to 12 months in the total volume of new term deposits increased to 76%.

The NBU also said in mid-June that it plans to study the revision of 3-month deposit multiples in July.

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