Kernel Agroholding’s assets in the port of Chernomorsk were subjected to a massive missile attack from Russia on Wednesday and suffered significant damage, the company said in a statement on the Warsaw Stock Exchange.
“The company’s grain handling facilities as well as grain stored at the Chernomorsk port were significantly damaged. Initial assessments indicate that it will take considerable time to return the assets to working condition,” Kernel said.
Reports of the damage led to a collapse of the share price on the exchange from PLN13.53 to PLN12.34 and high volatility: at one point they managed to recover the fall, but by 15:00 local time they were quoted at around PLN12.7-12.9, about 5% below the opening price.
As reported, the company’s CEO Yevhen Osipov in early July at a meeting of the grain club of the Ukrainian Grain Association reported on the need for further development of alternative corridors for export of Ukrainian agricultural products already built on the Danube and assured that Ukraine can fulfill forward deliveries through them.
Before the war, Kernel Agroholding ranked first in the world in the production of sunflower oil (about 7% of world production) and its export (about 12%). The company is one of the largest producers and sellers of bottled oil in Ukraine. In addition, the agroholding is engaged in the cultivation of agricultural products and their realization.
The largest co-owner of Kernel through Namsen Ltd. – is Ukrainian businessman Andriy Verevsky with a 41.3% stake, who recently proposed delisting the company from the Warsaw Stock Exchange and buying back shares from other shareholders.
Kernel’s net profit for the first nine months of 2023FY (Jan-March 2023) rose 36% to $437 mln, while revenue fell 45% to $2.715 bln.
