Mobile network operator Kyivstar has launched 4G communication in the 900 MHz range in Donetsk and Luhansk regions, where refarming of radio frequencies and reconfiguration of operator equipment have recently been completed.
“Thus, 4G in the 900 MHz band is already available in all regions of Ukraine. This is the completion of the first important stage of expanding the coverage of high-speed Internet in rural areas, which was launched in June 2020,” the operator’s press service said on Thursday.
Another 84,000 people living in 90 small towns or villages received access to 4G-network from Kyivstar in Donetsk and Luhansk regions today.
“The construction of 4G network in small villages is the most important tool to bridge the digital divide in Ukraine. To make this possible, Kyivstar voluntarily gave up part of its frequencies, which were then distributed among other operators to launch LTE in the 900 MHz band. High-speed Internet is starting to work today in small and remote villages, including those where only 50-100 people live,” President of Kyivstar Alexander Komarov said.
In general, high-speed mobile Internet from Kyivstar is already available in almost 14,000 cities, towns and villages, where 85% of the Ukrainian population lives.
According to the operator, half of these settlements were connected to 4G in 2020.
The company plans to provide at least 90% of the country’s population with high-speed mobile Internet by July 2022.
“The deployment of the national 4G network in rural areas was accelerated thanks to the use of the 900 MHz band, which has a larger coverage radius compared to the 1800 MHz and 2600 MHz bands. This was preceded by two years of painstaking work with the participation of all mobile network operators, the regulator, the Ministry of Digital Transformation and other public bodies,” Kyivstar said.
Since the beginning of 2020, Kyivstar has invested UAH 4.3 billion in the construction of the network, increasing investments by 22% compared to last year, and in general, over the past five years, the company’s expenses, including on the development of 3G and 4G communication in Ukraine, exceeded UAH 28 billion.
The net consolidated loss of the Naftogaz group in January-September 2020 amounted to UAH 17.034 billion compared to a net profit of UAH 21.31 for the same period last year.
“For the nine months, reported loss was UAH 17.0 billion, compared with a profit of UAH 12.9 billion for the same period in 2019, excluding discontinued operations [gas transit transferred from January 1, 2020 to GTSOU], reflecting lower demand and gas prices,” the company said in a statement Thursday.
According to the report, in the third quarter of this year, Naftogaz’s net loss from continuing operations was UAH 5.49 billion, which is 61.8% more than in the third quarter of last year. The group said that if we exclude the profit from transit during this period in 2019, then the increase in loss will not be so significant – 14.6%.
“Operating cash flow for the quarter was UAH 0.5 billion, compared with a negative operating cash flow of UAH 12.6 billion in Q3 2019 (excluding discontinued operations). For the nine months in a challenging environment, operating cash flow was UAH 16.1 billion, almost in line with the operating cash flow of UAH 16.9 billion in the same period last year,” Naftogaz said.
The group said that after abolishment of the Public Service Obligations (PSO) on August 1, 2020, Ukrainian gas consumers can switch freely from gas suppliers and benefit from market-based pricing, whilst gas intermediaries pay for gas supplies. However, payments for deliveries made before 31 July 2020 and under the PSO remain outstanding which results in provisions for bad debts, UAH 3.7 billion in the nine months. “Provisions for bad debts will likely have again a negative impact on profitability in the next quarter,” Naftogaz said.
According to the report, the group expects to receive of compensation from the state in the amount of UAH 32.204 million in 2020 under a law on cross payments with Ukrnafta recently passed, and this could bring the group to profits at the end of the year.
The group reported that adjusted EBITDA in 9M 2020 amounted to “minus” UAH 1.2 billion versus UAH 26 billion in 9M 2019, while in the third quarter the situation was reversed: this year EBITDA was positive – UAH 0.5 billion versus minus UAH 2.8 billion a year ago.
Naftogaz said that the positive contribution of exploration and production to EBITDA in 9M 2020 amounted to UAH 16.3 billion versus UAH 34.5 billion in 9M 2019, while the negative contribution from commerce was UAH 16.3 billion and UAH 9.9 billion respectively.
“Exploration and production result reflected lower gas prices that were partially offset by lower subsoil royalties as compared to the nine months of 2019,” the group said.
The group recalled that 10.7 billion cubic meters were produced and 12 billion cubic meters of natural gas were sold in 9M 2020.
In addition, Ukrnafta, in which Naftogaz owns 51%, increased the negative result of this year by UAH 2.2 billion, while last year its contribution was positive – UAH 1 billion. Ukrnafta’s result were negatively impacted by lower gas selling prices as well as lower volumes of crude oil sold, according to the report.
At the same time, the group managed to increase EBITDA from natural gas storage to UAH 3.8 billion from UAH 0.8 billion and to maintain a positive contribution of EBITDA from transportation, oil refining and sales of oil products – UAH 1.3 billion versus UAH 1.9 billion in 9M 2019.
“Gas storage reflected higher revenues from pumping and storage services due an increased demand. Oil midstream and downstream was primarily attributable to lower selling prices for petroleum products which were not wholly offset by attributable cost savings over the period,” the group said.
The group’s revenue in 9M 2020 fell compared to 9M 2019 by 6.2%, to UAH 103.17 billion, but in the third quarter it grew by 64%, to UAH 31.77 billion.
“Capital expenditure in the first three quarters of 2020 was UAH 11.8 billion, below the full-year target of UAH 20 billion. Free cash flow was resilient at UAH 4.1 billion,” Naftogaz said.
The group said that in the third quarter of this year capital expenditures totaled UAH 4 billion versus UAH 6.3 billion a year ago.
Its net debt fell from UAH 42.6 billion at the end of 2019 to UAH 19.7 billion at the end of the third quarter, and cash and cash equivalents fell from UAH 77.59 billion to UAH 45.81 billion.
In October-November 2020, the group paid off loans for the amount of UAH 3.36 billion and borrowed UAH 2.67 billion from banks.
Naftogaz Ukrainy unites the largest oil and gas companies in the country. The group is a monopolist in the storage of natural gas in underground storage facilities and the transportation of oil by pipeline throughout the country.
JSC Ukrzaliznytsia wants at least 50% of tourists traveling throughout Ukraine to choose the railway, head of Ukrzaliznytsia Volodymyr Zhmak said.
“In these conditions, we pay attention to domestic tourism, since external tourism is going through hard times. Ukrzaliznytsia considers domestic tourism to be one of those directions that can develop and bring funds to the Ukrainian economy. We want to reach a target of 50% of all tourists who travel in Ukraine. Encourage them to change buses to our comfortable passenger cars,” Zhmak said during a roundtable with the State Agency for Tourism Development of Ukraine and tour operators in Kyiv on Thursday.
The head of Ukrzaliznytsia said that the company is already working in this direction.
“We are already lowering the cost of tickets in the first class, we provide a flexible system of discounts for the redemption of tickets long before the departure date. In addition, we reduce a group booking rate. If earlier tour operators had to pay UAH 200 for a tourist of the group, then we reduce it to UAH 80. And then we will introduce a scale: the larger the group, the less you [tour operators] pay for each member of the group,” he said.
Main trade partners of Ukraine in % from total volume (export from Ukraine to other countries) in Jan-Aug.
SSC of Ukraine
The manufacturer of ambulance vehicles Avtospetsprom LLC (Kyiv region) has received a certificate of compliance from the French company Groupe PSA.
According to a press release from Avtospetsprom, the certification was carried out by the French inspection and certification company Bureau Veritas. The criteria were divided into groups, compliance with which was measured on a 100-point scale. Avtospetsprom received a score of 93 points for the production process, 92 points for quality control and 93 points for the supply chain.
“With an average score of 90 in all parameters, the company received the highest third level of assessment. This is the first time in history of the country when a document of this level was received by a Ukrainian company that converts the base chassis into ambulances. The certificate testifies that the quality of ambulance vehicles assembly at Avtospetsprom LLC fully complies with the requirements of Groupe PSA,” the company reports.
As the Interfax-Ukraine agency was told by the company, since the beginning of 2020, Avtospetsprom has produced 210 ambulances. In 2019, the company produced over 700 ambulances of all types.
Avtospetsprom LLC has been operating since 2012, it is one of the leading manufacturers of emergency (ambulance) medical care vehicles and the main supplier of such vehicles for public and private medical institutions in Ukraine.
In April and May 2020, the second largest autoproducer in Europe, Groupe PSA, together with Avtospetsprom, implemented a campaign to assist the Ministry of Health of Ukraine and regional medical institutions in maintaining the proper technical condition of Peugeot and Citroën ambulances. The companies jointly repaired 100 ambulances.
Ukraine and ten other countries have joined the EU sanctions against the terrorist organizations ISIS and Al-Qaeda, as well as individuals, groups, enterprises and organizations associated with them, the European Council said.
“The Candidate Countries the Republic of North Macedonia, Montenegro, Serbia and Albania2, the country of the Stabilisation and Association Process and potential candidate Bosnia and Herzegovina, and the EFTA countries Iceland and Liechtenstein, members of the European Economic Area, as well as Ukraine, the Republic of Moldova, Armenia and Georgia align themselves with this Council Decision,” the European Council said on its website on Thursday.
It is noted that these countries will ensure that their national policies conform to these Council Decisions.
“The European Union takes note of this commitment and welcomes it,” the message reads.
On 19 October 2020, the Council adopted Decision (CFSP) 2020/15161. The Council Decision extends the existing restrictive measures until 31 October 2021.
