Business news from Ukraine

Business news from Ukraine

France detains 719 rioters overnight

Police and gendarmes in France detained 719 rioters overnight, the country’s Interior Ministry said Sunday morning.

That figure is less than 24 hours earlier: on Saturday morning authorities had informed about 994 people detained during the night. And a few hours later, more complete figures came in about 1,311 detainees.

In general, as noted by the French media, it seems that this night in the cities of the country was somewhat calmer than previous ones. There were reports of 577 arson attacks on cars, as well as fires in 74 buildings. Hooligans also attempted to attack 10 gendarmerie barracks and six municipal police stations. All these figures are lower than on Saturday.

According to the French Interior Ministry, 54 police officers and gendarmes were injured overnight (79 the day before).

One of the most dangerous incidents occurred in the Parisian suburb of L’Ay-les-Roses, where hooligans set fire to a car and, seeking to use it as a battering ram, directed it toward the mayor’s house. One of the mayor’s children was injured. The police classified the incident as an attempted murder and are investigating.

Order in the French cities on Sunday night was provided by 45 thousand police officers and gendarmes.

On Saturday there was a funeral for a teenager who was shot and killed by a police officer on Tuesday in the Paris suburb of Nanterre. The young French resident, while driving a car, refused to stop at the request of the police. A policeman then shot him. An investigation is under way to determine whether the policeman acted correctly. This incident provoked a wave of night-time unrest throughout the country, which has not subsided to this day.

Grain and leguminous crops harvest forecast: 49.6 mln tons – Ukrhydrometeocenter

Approximate gross yield of cereals, leguminous plants and cereals in Ukraine, taking into account the areas under winter and sown spring crops in 2023, could be about 49.6 million tons compared to 53.1 million tons a year earlier, reported in the analytical agency “APK-Inform” with reference to the Ukrhydrometeocenter.
“Analysis of peculiarities of meteorological conditions of vegetation of grain, leguminous and cereal crops, state of crops, available reserves of productive moisture in the soil and agrometeorological calculations allow us to expect winter wheat yield in 2023 at 4, 3 tons/ha, winter rye – 3.2 tons/ha, winter barley – 3.5 tons/ha, spring barley – 3.2 tons/ha, spring wheat – 3.7 tons/ha, oats – 2.5 tons/ha, pea – 2.3 tons/ha, corn – 6.5 tons/ha, millet – 2.1 tons/ha, buckwheat – 1.1 tons/ha,” the report says.
According to the report, agrometeorological conditions for the formation of grain crops in Ukraine this year were satisfactory. But during the growing season there were some unfavorable periods, which could adversely affect the yield. As a result of excessive rains in April on the fields in some areas was overwatering the soil, creating difficult conditions for the conduct and completion of sowing of early spring grain and leguminous crops in optimal time.
The weather that prevailed in May (frequent rains, decreased air temperature, increased relative humidity during the day, cloudiness and prolonged dews) were able to restrain the development of dry phenomena.
In June weather in Ukraine had significant temperature contrasts (…), there was a shortage of effective precipitation in many areas of the south, central and northern regions, which led to a shortened growing season, early and simultaneous maturation of grain early crops in central and southern regions, stated in Ukrhydrometeocenter.
As reported, the Ministry of Agrarian Policy predicts a grain and leguminous crops in 2023 at 46 million tons, which is 10-15% less than a year earlier. At the same time, it is 2.5 times more than the domestic needs of Ukraine. There is no risk of grain shortage for domestic purposes today, the ministry said.

Insurer “Inter-Policy” will increase authorized capital

PJSC IC “Inter-Policy” (Kiev) plans to increase the authorized capital by 14.160 million UAH (87.5%) by increasing the nominal value of the shares from 300 UAH to 560 UAH per share , according to the agenda of the shareholders meeting scheduled for August 3, 2023, according to the NKTSBFR system.
It is also noted that the issue will be carried out at the expense of sending to the share capital part of the share premium, received in 2016 in the total amount of 14.160 million UAH.
As it was reported, IC “Inter-Policy” was founded in 1993. It has 20 licenses for voluntary and compulsory insurance, branches and representative offices in all major regional centers of the country.
Authorized capital UAH 16,182 mln.

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“Interpipe” has increased its profit by 2.6 times in Q1

The international vertically integrated steel pipe and railway wheel company Interpipe in January – March this year increased its net profit by 2.6 times against the same period last year – up to $57.142 mn from $21.779 mn.

According to the interim report of the company on the operating and financial results for the first three months of 2023, its pretax profit amounted to $74.448 million compared to $29.202 million in the first quarter of 2022.

At the same time, Interpipe in January-March 2023 increased its free cash and cash equivalents from $153.777 million on January 1, 2023 to $207.824 million on March 31, 2023 (January 1, 2022 was $109.627 million, March 31, 2022 – $165.561 million).

EBITDA in Q1-2023 amounted to $79.427 million, while in Q1-2022 it was $15.139 million.

At the same time, the company cut its revenue by 4% to $229.291 mln from $239.185 mln.

As it was reported, steel output in January-March 2023 increased by 13% to 184 thnd mt compared to January-March 2022, pipes – by 12% to 105 thnd mt, but the railway production decreased by 13% to 20 thnd mt. The sales of products decreased by 23%, to 108 thousand tons, including pipes – by 20%, to 82 thousand tons, railway products – by 27%, to 19 thousand tons, steel billets – by 50%, to 6 thousand tons.

Net leverage ratio strengthened to 0.7x.

At the same time, the press release noted that in early 2023, production at all Interpipe enterprises was negatively affected by tight limits on electricity consumption by industrial consumers. However, already in March the situation improved due to removal of these restrictions.

Andriy Korotkov, the general director of Interpipe, stated that starting from the middle of the quarter, the company’s plants returned to stable operation, without any “broken” schedules. This made it possible to increase production at the end of the quarter, and in some segments, for example, in the pipe division, to get somewhat closer to the pre-war level.

“Even in difficult military conditions, Interpipe continues to fulfill all orders and delivers products to customers quickly and on time. Significant support is provided by the extension of the cancellation of all quotas and duties on Ukrainian goods by the United States and the EU,” the top manager noted.

“The net profit of Interpipe in 2022 is $204.441 mln, which is 2.2 times more than for the previous year ($91.316 mln). The pre-tax profit for last year was $220.579 million compared to $110.907 million for 2021. The revenue in 2022 decreased by 13.4% to $981.330 million from $1 billion 132.9 million a year earlier. At the same time, Interpipe has increased its free cash flow from $109.627 mln to $153.777 mln during the year.

“Due to the war, in 2022, Interpipe reduced EBITDA by 11% compared to the previous year – up to $204 million. Steel output in 2022 decreased 39% to 595 thousand tons, pipes – by 36% to 393 thousand tons, railway products – by 51% to 84 thousand tons.

Sales of products in the reporting period decreased by 37%, to 524 thousand tons, including pipes – by 36%, to 384 thousand tons, railway products – by 50%, to 87 thousand tons. Its sales revenues decreased by 13% to $981 mln, while net leverage remained at a strong and stable level of 1.1x.

“Interpipe is a Ukrainian industrial company producing seamless pipes and railroad wheels. The company supplies its products to over 80 countries all over the world through a network of sales offices located in the key markets of the Middle East, North America and Europe. In 2022, the company sold 384 thnd mt of tubes and 87 thnd mt of railroad products. The company sells its railroad products under the KLW brand.

Interpipe has 10 000 employees. In 2022 the company transferred 2.8 billion hryvnias to the budgets of all levels.

The company has five industrial assets: “Interpipe Nizhnedniprovsk Tube Rolling Plant (NTZ)”, “Interpipe Novomoskovsk Tube Plant (NMTZ)”, “Interpipe Niko-Tube”, “Dnepropetrovsk Vtormet” and the electric steelmaking complex “Dneprostal” under the “Interpipe Steel” brand.

The ultimate owner of Interpipe Limited is Ukrainian businessman Viktor Pinchuk and his family members.

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“Nibulon” invests EUR27 mln in construction of new elevator and plant

JV Nibulon LLC (Nikolaev), one of the largest operators on the grain market of Ukraine, attracted EUR27 million from the Export Investment Fund of Denmark (EIFO) to increase the capacity of the Bessarabian branch in Izmail, where an elevator and a flour mill will be built, the company’s press service said on Facebook.
“We are extremely impressed by the speed of decision-making and support from Denmark in these difficult times for the Ukrainian economy. We really need more and more such positive signals so that others can emulate them,” Nibulon CFO Olga Babanina said.
According to the grain trader, the raised funds will be used to build an elevator for simultaneous storage of 118.5 thousand tons of grain and high-tech modern mill with a capacity of 750 tons per day.
This infrastructural solution will allow Nibulon to increase its export capacity up to 300,000 tons per month and supply flour to the domestic market as well as serve the interests of the food security mission of UN World Food Program via the Danube ports, the company explained.
Besides, the company added that construction of the new production facilities will allow to increase the number of jobs in the region and employ 100 specialists.
As it was informed, the financing is carried out within the framework of social program of Danish Investment Fund, created for Ukraine. The launch of the program was announced in May during the Ukrainian Investment Forum in Copenhagen.
JV Nibulon LLC was founded in 1991. Before the Russian military invasion the grain trader had 27 transshipment terminals and complexes for reception of agricultural crops, capacities for simultaneous storage of 2.25 mln tons of agro-industrial complex products, fleet of 83 vessels (including 23 tugboats) and owned Nikolaev Shipbuilding Plant.
“Nibulon” before the war worked 82 thousand hectares of land in 12 regions of Ukraine and exported agricultural products to more than 70 countries.
The grain trader exported a maximum of 5.64 million tons of agricultural products in 2021, reaching record volumes of deliveries to foreign markets in August – 0.7 million tons, in the fourth quarter – 1.88 million tons and in the second half of the year – 3.71 million tons.
Nibulon’s losses from Russia’s full-scale invasion reached $400 million. The grain trader is currently operating at 30% of its capacity and has set up a special unit to clear farmland.

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Grain exports up by 641 thousand tons in 2022/23 MY – Ministry of Agrarian Policy

Ukraine exported in 2022/2023 marketing year (from July 1, 2022 to June 30, 2023) 48.996 million tons of grain and leguminous products, which is 641 thousand tons more than in 2021/2022 MY, said the press service of the Ministry of Agrarian Policy and Food.
During the previous marketing year, Ukraine exported 48.355 million tons of grain and leguminous products, in particular: 18.72 million tons of wheat, 5.747 million tons of barley, 161.5 thousand tons of rye and 23.409 million tons of corn.
It is noted that in 2022/2023, as of June 30, Ukraine reduced exports of wheat by 10.6% – to 16.836 million tons, barley by 52.9% – to 2.704 million tons, rye by 88.9% – to 18 thousand tons, but increased supplies of corn to foreign markets by 24.4%, which reached 29.128 million tons.
According to the report, Ukraine increased exports of all major export items of agricultural products in June 2023, in particular, 2.9 times the supplies to foreign markets of cereals and leguminous plants increased and reached 3.658 million tons. Export of wheat increased by 10.9 times – to 1.338 million tons of wheat (last June – 122 thousand tons), barley – 1.8 times – to 57 thousand tons, corn – twice – to 2.257 million tons.
Ukraine did not export rye in June 2023 and in June last year.
Since the beginning of 2022/2023 MY, Ukraine exported 153.6 thousand tons of flour, which is 2.2 times more than a year earlier, when exports were 70.7 thousand tons.
According to the Ministry of Agrarian Policy, Ukraine exported more than 22.5 million tons of grain in January-May 2023, including more than 14.3 million tons of corn, more than 7.2 million tons of wheat and more than 977 thousand tons of barley.

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