In its September report, the U.S. Department of Agriculture (USDA) kept the forecast for the production of Ukrainian wheat in the 2021/22 year (July-June) at 33 million tonnes, and its exports at 23.5 million tonnes, which is in line with the Department’s forecast published in August. In the September report, the USDA also kept the forecast for the corn harvest in 2021/22 at 39 million tonnes, and its exports from Ukraine at 32 million tonnes.
As reported, from the beginning of 2021/22 and as of September 10, 2021, Ukraine exported 10.29 million tonnes of grains and legumes, which is 12% more than on the same date of the previous year. Some 5.92 million tonnes of wheat were exported (4.1% less than on the same date 2020/21), 2.99 million tonnes of barley (a rise of 24.7%), 1.34 million tonnes of corn (2.2 times up); 24,700 tonnes of flour (33.7% less).
Investment in physical capital and infrastructure without sufficient investment in human capital may not give Ukraine the expected dividends, World Bank Vice President for Europe and Central Asia Anna Bjerde has said in an exclusive interview with Interfax-Ukraine.
Bjerde welcomed the fact that policymakers have identified priority areas and recognized the need to mobilize investment. She said this, commenting on the government’s intention to stimulate investment in “growth points” – priority sectors.
She emphasized one important aspect that has not been particularly highlighted in the government’s plans – the importance of human capital. Education, skills, experience, innovation and public health together is, according to a study, the most important resource for sustainable economic growth. This is glue that brings together other factors of production, including physical capital and infrastructure, she added.
As reported, the government has identified five priority clusters that can have the highest multiplier effect for Ukraine: technological production, energy security, life safety, transport and the City of Craftsmen, or the development of local, unique industries. According to the government, stimulating these “growth points” with investments in the amount of $1 billion will give the highest multiplier effect and will lead to economic growth by 1-2% of GDP.
National bank of Ukraine’s official rates as of 13/09/21
Source: National Bank of Ukraine
Official rates of banking metals from national bank as of September 13
One troy ounce=31.10 grams
In January-June of this year, the international vertically integrated pipe and wheel company Interpipe reduced its net profit by about 74.4% compared to the same period last year, to $29.431 million from $115.529 million.
According to the company’s interim report on operating and financial results for the second quarter and the first half of 2021, pre-tax profit in January-June decreased 58.3%, to $50.766 million from $123.495 million in the same period in 2020.
At the same time, operating profit halved – to $62.847 million from $128.058 million.
Interpipe received $111.209 million EBITDA in the first half of this year, which is 25.4% less than the same period last year ($148.980 million). The company’s revenue during this period decreased by 1.7%, to $460.471 million, while capital investments increased by 66%, to $31 million.
In addition, Interpipe increased its free funds from $96.631 million at the beginning of this year to $206.008 million by the middle of the year. In the same period last year, Interpipe reduced free funds from $256.148 million (at the beginning of 2020) to $186.790 million (as of mid-2020).
As reported in the company’s press release, Interpipe’s net debt at the end of the first half of 2021 was $199 million, while the net leverage ratio (net debt to EBITDA) remained stable at 0.9x.
In the second quarter of this year, revenue increased by 29% compared to the previous quarter, to $260 million, EBITDA increased by 75%, to $71 million, and the amount of capital investments increased by 20%, to $14 million.
Capex in new projects tripled year over year, to $21 million.
As of June 30, 2021, the company’s total debt increased to $199 million following the successful placement of a new $300 million eurobond issue with a rate of 8.375% maturing in 2026. The net leverage ratio remained stable at 0.9x.
Interpipe in January-March this year reduced its net profit by 90.4% compared to the same period last year, to $12.826 million from $133.064 million. In the second quarter, revenue decreased by 19.9%, to $200.952 million, EBITDA – by 53%, to $40 million, the amount of capital investments increased by 58%, to $17 million. Net debt was $53 million with the net leverage ratio of 0.2x. As of March 31, 2021, the company’s total debt fell to $110 million following the full redemption of the 2024 eurobonds on January 26, 2021, keeping the net leverage ratio low at 0.2x.
Interpipe is a Ukrainian industrial company, a manufacturer of seamless pipes and railway wheels. The company’s products are supplied to more than 80 countries all over the world through a chain of commercial offices located in the CIS, Europe, the United States and the Middle East.
The National Bank of Ukraine (NBU) on September 9 made a decision to revoke the banking license and liquidate Bank Zemelny Capital (Dnipro) belonged to former Coal Industry Minister Viktor Topolov (94.4% of shares), the regulator has said on its website.
“At the suggestion of the Deposit Guarantee Fund, the NBU made decision No. 469-rsh dated September 9, 2021 to revoke the banking license and liquidate Bank Zemelny Capital,” the NBU said.
As reported, the NBU on August 11 classified Bank Zemelny Capital as insolvent due to the failure to meet its obligations to depositors and other creditors due to insufficient funds within the term established by the agreement or determined by the legislation of Ukraine.
Bank Zemelny Capital was founded in 1994. According to the NBU data as of January 1, 2021, the owner of the bank’s substantial participation is former Minister of the Coal Industry Viktor Topolov (94.4% of the shares).
According to the NBU, as of June 1, 2021, Bank Zemelny Capital ranked 63rd in terms of total assets (UAH 909.983 million) among 73 banks operating in the country.
