The Cabinet of Ministers of Ukraine approved the draft letter to the government of Japan on the project of construction of bridge across the Pivdenny Buh river in Mykolaiv. The relevant decision was made at a meeting on Wednesday. In the explanatory note it is specified that it is necessary for official confirmation of intention and interest of Ukraine in joint implementation of this construction with the government of Japan and the Japanese agency of international cooperation, and it will also specify the priority of the project for development of Mykolaiv region and Ukraine as a whole.
The text of the letter is not provided.
As it was reported, in January, 2020 the Japanese agency of the international cooperation JICA confirmed cooperation in construction of the bridge in Mykolaiv.
JICA presented the project of construction of the bridge in Mykolaiv in June, 2018.
The Cabinet of Ministers of Ukraine has transferred Dnipro Electric Locomotive Plant to the list of objects of big privatization from objects of small privatization, which means sale at a tender with conditions.
The corresponding order on the plan to sell 100% of the plant shares was adopted by the government at a meeting on September 15.
An explanatory note to the draft resolution states that the value of the company’s assets at the end of 2020 was UAH 420.3 million, while small privatization objects have assets of up to UAH 250 million.
The plant in 2018-2019 was included in the list of objects of small privatization, but the sale did not take place. In August 2020, the government agreed on the transformation of the state enterprise Dnipro Electric Locomotive Plant into a joint-stock company, and the corresponding changes were registered in March 2021.
Dnipro Electric Locomotive Plant specializes in the production of main-line electric locomotives of direct and alternating current, industrial electric locomotives for opencast mining of minerals, as well as mine contact electric locomotives for mining and coal industries.
According to information in the SPARK system, the plant’s net loss in 2020 increased by 18.8% – to UAH 78.5 million, and revenue fell to UAH 4,000 from UAH 35.6 million a year earlier.
National bank of Ukraine’s official rates as of 20/09/21
Source: National Bank of Ukraine
Official rates of banking metals from national bank as of September 20
One troy ounce=31.10 grams
The rating agency Expert-Rating has affirmed the financial stability rating of KSG Agro SA (Switzerland), the holding company of the agricultural holding KSG Agro, at the level of “uaA+” on the national scale (corresponds to the BBB level on the international scale), the company said in a press release on Wednesday following an audit of its activities over the first half of the year.
According to the rating agency, this assessment of the company’s performance in the first half of 2021 is due to an increase in the level of coverage by its own capital of its debt obligations, the company’s profitability and a good level of its EBITDA to available loans.
“Throughout the period from June 30, 2020 to June 30, 2021, KSG Agro’s equity capital grew by 52.46%, up to $14.47 million, including due to its profitable activity and the reduction of retained loss. For the same period the liabilities of KSG Agro S.A. decreased by 12.52%, down to $55.7 million. The decrease in liabilities of KSG Agro S.A. was mainly due to selling three subsidiary companies in May, 2021,” the rating agency said in the report.
According to it, debt obligations of KSG Agro S.A. as of June 30, 2021, decreased by 12.52% compared to June 30, 2020, to $55.69 million. Long-term loans predominated in the structure of the company’s debt obligations as of that date: their volume increased by 7.52%, to $27.25 million, whiles the volume of short-term liabilities decreased by 54.19%, to $2.91 million.
The agency noted that EBITDA of KSG Agro SA in the first half of 2021 decreased by 22.49% compared to January-June 2020, to $2.69 million. At the same time, the ratio of EBITDA to its loan obligations as of June 30, 2021 decreased by 2.03 p.p. versus the same date last year, to 8.95%, which indicates the company’s ability to service its debt obligations.
The agency’s report indicated that the current macroeconomic situation in Ukraine did not significantly affect the sales volumes of the agricultural holding’s products, in particular, its revenue in the first half of 2021 decreased by 12.1% compared to the same period in 2020, to $6.81 million. During the specified period, the net profit of KSG Agro increased 48 times, to $13.7 million, mainly due to the sale of its subsidiaries.
“Therefore, according to the results of the first half of 2021, KSG Agro S.A. demonstrated high profitability indicators,” the rating agency said.
The agency recalled that the borrower or the particular debt instrument with rating “uaA+” is characterized by a high creditworthiness compared to other Ukrainian borrowers or debt instruments.
