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.
Gross take-up of warehouses in the Kyiv market in January-March 2020 grew by 15% year-over-year, to 28,800 square meters, according to a survey of Cushman & Wakefield Ukraine. “According to our experts, in the first quarter of 2020, the net take-up in the segment was negative and amounted to approximately minus 40,800 square meters, which is mainly due to a change in the rental strategy of the owners of several facilities in the period before the spread of COVID-19,” Head of Research and Development Consultancy at Cushman & Wakefield Ukraine Marta Kostiuk.
According to the company, preliminary leases amounted to 85% of the total volume of transactions in the first quarter.
Since the beginning of the year, there was no new offer on the warehouse real estate market of Kyiv. However, by the end of 2020, two facilities with a total area of 60,000 square meters will go live.
According to the survey, the primary vacancy of warehouses in March 2020 increased 2.1 percentage points compared to the end of 2019 and amounted to 2.9%. Moreover, the occupancy rate of the facilities planned for launch this year is already 40-100%, the company said.
Base rental rates for high-quality class A warehouses in Kyiv and its suburbs remained at $4-5.8 per sq. m. a month, and class B $3.2-3.8 per sq. m. a month.
“Given the growing risks associated with the economic slowdown amid the spread of COVID-19, from the second half of March 2020, a number of tenants in the warehouse and logistics real estate market in Kyiv and its suburbs initiated negotiations with lessors in order to minimize their rental costs,” Kostiuk said, clarifying that the provision of preferential conditions for tenants is individual in nature and is not a trend.
The State Agency of Automobile Roads of Ukraine (Ukravtodor) has announced its intention to overhaul 40 km of the M-05 Kyiv-Odesa road at the expense of funds from international financial organizations, Onur Taahhut Tasimacilik Insaat Ticaret Ve Sanayi A.S. (Turkey) was determined as the contractor with a contract signed for the amount of EUR65.033 million.
The agency said on Telegram the reconstruction of the road section (km 87+442 – km 128+028) will be carried out as part of the project for improving the transport and operational condition of roads on the approaches to Kyiv, which is implemented for credit funds of the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD).
According to Ukravtodor, in particular, the matter concerns three facilities where road, bridge, drainage and other works will be carried out.
“Based on the results of open international tenders in accordance with the principles and rules of the EBRD, Onur Taahhut Tasimacilik Insaat Ticaret Ve Sanayi A.S. was determined as the contractor. A contract was signed with it on January 20, 2020 for a total of EUR65.033 million excluding VAT,” the report says.
According to Ukravtodor, the contractor is currently carrying out preparatory activities. The active phase of the overhaul of the site will begin after the issuance of an appropriate permit for road work by the State Architectural and Construction Inspectorate.
Solvent banks in Ukraine in January-March 2020 received UAH 15.974 billion in net profit, which is 23.8% more than in the same period in 2019 (UAH 12.902 billion), according to data published on the website of the National Bank of Ukraine (NBU). According to the report, the banks’ income for the three months of this year increased by 12.6% against the figure for the same period last year, to UAH 65.343 billion. In particular, commission income rose by 16.8%, to UAH 16.308 billion, and the result from revaluation and sale and purchase transactions by 2.1 times, to UAH 7.739 billion.
At the same time, the banking system’s expenses for January-March 2020 grew by 9.4% compared with this indicator in 2019, to UAH 49.369 billion, in particular commission expenses by 39%, to UAH 5.518 billion, and payments to reserves by 2.9%, to UAH 4.85 billion.
As reported, in 2019 Ukrainian banks increased profit by 2.7 times, to UAH 59.634 billion.
President of Ukraine Volodymyr Zelensky has said how it is important to continue to build the roads in Ukraine.
“I want to stress on how important to warm up our economy and give it an impetus after quarantine. That is why the Big Construction Program continues. In 2020, we will allocate UAH 85 billion to state roads and UAH 22 billion – to the local roads,” Zelensky said in a video address to Ukrainians on April 30.
According to him, this will help create thousands of jobs in all regions of our country.
Zelensky noted that on April 30 the issue of providing Ukravtodor with the first tranche from Ukreximbank to upgrade the roads was resolved.
“At the same time, schools, kindergartens and more than two hundred admission departments in supporting hospitals are of our top priority,” he said.
The Ministry of Economic Development, Trade and Agriculture predicts that Ukrainian farmers will harvest 63-65 million tonnes of grain and leguminous crops in 2020 against the previously projected 60 million tonnes. “Looking at the sown area, we expect the final gross grain production at the level of 63-65 million tonnes, which is 2.5 times more than the domestic market needs. We can formulate the final figure at the end of May, everything will depend on rains in this period. According to the forecast, they should be. Perhaps even the figure will be larger,” Deputy Economy Minister Taras Vysotsky said on the air of Ukraine 24 TV Channel.
Vysotsky noted that there are no threats to food security nationwide due to adverse climatic conditions, a critical situation has developed only in Odesa region.
“The losses there are large, sometimes up to 50% of the sowings. Now they’ll sum up the potential losses, they will transfer documentation, hold commissions and consider the possibility of financing from the reserve fund or other available instruments. We will study the situation in this region to support those farmers who have a large percentage of losses and there is a risk of becoming bankrupt,” the official said.
