Business news from Ukraine

Business news from Ukraine

UKRAINIAN NATIONAL FOOTBALL TEAM BEATS ESTONIA

The Ukrainian national football team has defeated the Estonian team in a friendly match with a score of 1:0. The meeting took place in Zaporizhia on Thursday evening.
The only goal was scored by the Belgian Gent midfielder Roman Bezus in the last seconds of added time by a free kick and a rebound from ex-football player of the Lviv Carpathians Serhiy Zenev.

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PIVDENNY PORT SEES 28% RISE IN CARGO HANDLING

State-owned enterprise Pivdenny maritime merchandise port in January-October 2019 handled 43.852 million tonnes of cargo, which is 28.3% more than in January-October 2018.
According to information from the Ukrainian Sea Ports Authority, for the period the port increased transshipment of exported cargo by 35.7%, to 31.97 million tonnes, imported freight by 3%, to 6.036 million tonnes, transit by 26.3%, to 5.824 million tonnes.
In January-October, the seaport handled only 13.3% of the volume of coastal cargo compared to the same period in 2018, which amounted to 46,000 tonnes.
In January-September, the port raised transshipment of liquid cargo by 10.4%, to 3.673 million tonnes, dry bulk cargo by 35%, to 36.73 million tonnes, and reduced transshipment of packaged goods by 5.6%, to 3.447 million tonnes.
Container transshipment amounted to 169,420 TEU (an increase of 79.2% compared to the same period in 2018).
As reported, in 2018 the port increased transshipment of goods by 1.92% compared to 2017, to 42.702 million tonnes.
Pivdenny port was founded in 1978. It is located on the Adzhalyk firth and is the deepest harbor in Ukraine. The length of its berths is around 2.6 kilometers.

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UKRAINE CUTS IMPORTS OF ALUMINUM ORE

Ukraine in January-October of 2019 decreased imports of aluminum ore and concentrate (bauxites) in natural terms by 0.9% compared to the same period in 2018, to 4.039 million tonnes.
According to customs statistics released by the State Fiscal Service, during this period bauxite imports in monetary terms increased 10.5%, to $181.866 million.
Imports were mainly from Guinea (53.86% of deliveries in monetary terms), Guyana (39.55%), and Brazil (2.92%).
In January-October 2019, some 22 tonnes of bauxite were exported to Poland for $1,000, whereas in January-October 2018 some 45 tonnes of bauxite were re-exported to Poland for $5,000.
As reported, Ukraine in 2018 increased imports of aluminum ore and concentrate (bauxite) in natural terms by 4.6% compared with 2017, to 5.089 million tonnes. Imports of bauxite in monetary terms fell by 2.4%, to $207.222 million. Imports were mainly from Guinea (57.17% of deliveries in monetary terms), Guyana (36.63%), and Brazil (4.37%).
In 2018, some 45 tonnes of bauxite were also re-exported to Poland for $5,000, while in 2017 some 162 tonnes of bauxite worth $ 10,000 were re-exported.

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UKRAINE PLANS TO BORROW $4.9 BLN ON FOREIGN MARKETS NEXT YEAR

The plan of financing the national budget in 2020 announced by the government in the draft budget envisages borrowing on the foreign market in the amount of $4.9 billion and on the internal market in the amount of UAH 231.1 billion or $8.4 billion, state representative for public debt Yuriy Butsa has said.
“We will continue increasing the share of borrowings in national currency,” he said at a conference of the Fitch Ratings in Kyiv on Thursday.
According to him, the amount of payments on public debt next year is estimated at UAH 282.1 billion ($10.3 billion) of repayment of the principal amount and UAH 141.5 billion ($5.1 billion) of interest payments. He also said that another UAH 12 billion is planned to be raised through privatization.
Butsa said that since the beginning of this year, the total public debt of Ukraine has declined from 60.9% of GDP to 51.2% of GDP in September this year, although in U.S. dollar terms it has grown from $78.3 billion to $83 billion.
He also said that the share of debt in the hryvnia during this time increased from 33% to 40%, and in U.S. dollars decreased from 48% to 42%. According to him, the debt in euros increased from 9% to 11%. Butsa added that a small share of the euro in debt allows us to consider the possibility of increasing it.

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ORANTA INSURER SEES 18% RISE IN PREMIUMS

Oranta national joint-stock insurance company (Kyiv) in January-September 2019 collected gross insurance premiums for the amount of UAH 679.3 million, which is 17.9% more than a year ago.
The company said that in particular, premiums for voluntary car insurance over the period grew by 25.2%, to UAH 32 million, premiums on compulsory insurance of vehicle owners’ civil liability (OSAGO) – by 9.2%, to UAH 383.4 million, Green Card – by 45.2%, to UAH 121.3 million, property insurance – by 5.4%, to UAH 64.9 million, liability insurance – by 50.7%, to UAH 35 million and voluntary medical insurance – by 49.5%, to UAH 27.373 million.
According to the company, in January-September 2019, 1.553 million insurance contracts were concluded, which is 7.9% more than the same period a year earlier. In particular, the number of concluded voluntary medical insurance contracts increased 78%, mandatory car insurance – by 60.4%, Green Card – by 54.4%, cargo insurance – twice, and liability insurance – 62.8%.
Over the period, Oranta paid out UAH 238.8 million in claims to customers, which is 29.1% more than in the same period last year. The largest payments were made under OSAGO – UAH 168.4 million (a rise of 31.8%), Green Card – UAH 35.6 million (a rise of 11.2%), voluntary car insurance – UAH 16.2 million (a rise of 19.9%), property insurance – UAH 10.5 million (a rise of 60.6%), voluntary medical insurance – UAH 5.515 million (a rise of 92.9%).
The company also said that the level of payments for the reporting period amounted to 35.1%, while for this period a year earlier it was 32.1%.
Oranta is the legal successor of Ukrgosstrakh, founded on November 25, 1921. In 1993, Ukrgosstrakh was reorganized into OJSC Oranta.

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KSG AGRO SEES 4.5-FOLD RISE IN NET PROFIT

KSG Agro in January-September 2019 saw $10 million of net profit, which is almost 4.5 times more than a year ago.
According to unaudited interim condensed consolidated financial statements of the holding posted on the Warsaw Stock Exchange (WSE), its revenue over the period fell by 11.3%, to $17.76 million.
KSG in January-September of this year reduced gross profit by 58.3% compared to the same period in 2018, to $ 1.86 million, operating – by 41.2%, to $2.54 million.
KSG’s revenue in the crop production segment for the reporting period decreased 32.2%, to $7.8 million. In particular, from the sale of sunflower oil the company saw $4.9 million, wheat $1.6 million, rapeseed $0.5 million, barley $0.5 million and sorghum $0.2 million
Over the first nine months of 2019, KSG’s revenue in the livestock segment decreased 1.7%, to $5.8 million (last year, sales of cows were included in the segment’s revenue, later KSG sold cattle and focused on pig breeding), pig sales remained at the January-September 2018 level and amounted to 72,000 heads.
The total assets of the agricultural holding as of September 30, 2019 amounted to $75.7 million compared with $53.2 million as of December 31, 2018.
In 2019, the group completed the restructuring of its core loans. In particular, In February 2019, the Group has restructured its debt under the loan from Big Dutchman Pig Equipment. The remaining balance was repaid in full. In July 2019, the group has finalized restructuring terms for an overdue loan from Landesbank Baden-Wuerttemberg (LBBW) in the total amount as at December 31, 2018, including interest, of $9.9 million. As a result, the group’s debt under the loan was reduced to EUR 3.2 million. At the date these financial statements are being issued, the remaining balance is $3.3 million
The group’s long-term liabilities as of September 30, 2019 amounted to $19.1 million compared with $20.5 million as of December 31, 2018, current liabilities as of September 30, 2019 amounted to $52.5 million compared with $49.1 million as of December 31, 2018.
As of the reporting date, KSG has completed its 2019 harvesting campaign and is sowing winter crops. As of September 30, 2019, the group harvested 14,500 tonnes of wheat, 12,200 tonnes of sunflower, 3,900 tonnes of barley, 2,800 tonnes of corn and 1,100 tonnes of rapeseed.

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