Business news from Ukraine

Business news from Ukraine

An abnormal 40-degree heat wave is forecast around world

The World Meteorological Organization (WMO) warned on Tuesday that temperatures above 40 degrees Celsius will linger in many parts of the world for several days.

“Temperatures in North America, Asia and northern Africa and the Mediterranean will be above 40 degrees Celsius for an extended number of days this week,” Western media quoted excerpts from a WMO statement.

“And while the focus is on maximum daytime temperatures, nighttime temperatures pose the greatest risks to human health,” it notes.

Meanwhile, residents in most European countries faced abnormally hot weather on Tuesday. Italian health services warned of increased danger due to the weather in dozens of cities in the country. The highest temperature in the country is in Sardinia and Sicily, the thermometer in some areas rose above 45 degrees Celsius.

Italian media noted that on Tuesday in Italy recorded the highest level of electricity consumption for the year, which is associated, in particular, with the use of air conditioners.

Spain is also experiencing extremely hot weather, with the northeast of the country and Mallorca preparing for record high temperatures this week. Residents are being warned about the risk of forest fires.

Natural fires are already raging in several European countries, including Greece and Switzerland, which are spreading rapidly just because of the dry weather.

Ten departments in France declared an orange danger level on Tuesday due to the heatwave. In Corsica the temperature has risen above 41 degrees Celsius, in most communes of the Eastern Pyrenees the thermometer column does not fall below 40 degrees Celsius.

Residents of some American states continue to struggle with hot weather, in the capital of the state of Arizona, Phoenix, on Tuesday, as expected, will again break the temperature record – above 43.4 degrees Celsius. The city has been recording record highs for more than a week.

Guardian Insurance Company has increased payments by 3 times

In January-June 2023, Guardian Insurance Company (Kyiv) made insurance payments in the amount of UAH 180.2 million, which is three times more than in the same period a year earlier, the insurer said on Tuesday.

According to the company, UAH 673.8 million was collected during the period.

The level of insurance payments for the leading types of insurance amounted to 26.74%. In particular, for the Green Card – 22.6% with insurance premiums of UAH 452.8 million, for MTPL – 47.4% (UAH 154.3 million), for hull insurance – 45.9% (UAH 21.6 million).

Ukraine’s Eurobond prices rose to highest since beginning of war in week

Prices of Ukraine’s Eurobonds jumped by an average of 13% over the past week and, taking into account the growth at the end of June, reached a new high for the period since the beginning of the full-scale Russian aggression.

According to Bloomberg data, last week the quotations of dollar Eurobonds ended in a range from 28.1% of the face value of the shortest securities maturing in September 2025 to 25.0% of the face value of the longest securities maturing in March 2035.

On average, quotations grew during the week by 3.1 percentage points rather evenly along the whole curve.

According to market participants, such a spurt could be caused by the positive reaction to the results of the NATO summit, as a few weeks ago – by the results of the Conference on the reconstruction of Ukraine in London and the rebellion of Prigozhin.

In addition, Ukraine’s GDP warrants also rose to a new military maximum last week – 42.6% of the nominal value, while a week ago they were given 39.3% of the nominal value, and several attempts to break through the 40% level were unsuccessful.

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.