PJSC Odeskabel, the large Ukrainian cable plant, made a loss of UAH 53.57 million in January-March 2019, while for the same period in 2019 net profit amounted to UAH 580,000.
According to the plant’s interim statements released in the information disclosure system of the National Securities and Stock Market Commission on Tuesday, April 28, its net income decreased 2.8%, to UAH 390.56 million.
The plant received a gross profit of UAH 57.11 million in the first quarter compared to UAH 59.71 million in 2019, and operating profit amounted to UAH 160,000 against UAH 13.79 million.
Cables for structured cabling systems had the largest share in the structure of products sold (39%), the share of power wirings and cables was 24.5%, and that for fiber optic cables was 15.3%.
The plant said in the report that the interim statements were influenced by lockdown introduced on March 12 in Ukraine due the coronavirus (COVID-19) spread, a change in stock market prices for copper (the main material for the cabling and wiring products) from $6,180 in January 2010 to $5,270 in March, and aluminum from $1,800 to $1,660, which affected the cost and pricing of Odeskabel products.
Among the main risks and uncertainties in the company are the dependence on the following facts: prices for 90% of the materials depend on the world market, and the sales market is largely Ukraine and neighboring countries; a change in the currency rate from UAH 23.68/$1 in January to UAH 28.06/$1 in March; falling solvency of customers, difficulties with the supply of materials for production.
Odeskabel is one of the leading manufacturers of fiber optic cable in Ukraine. In addition, it manufactures cable products for LAN networks, telephony, etc.
