Business news from Ukraine

Business news from Ukraine

DEMAND FOR NEW PASSENGER CARS IN UKRAINE GROWS BY 10%

Primary registrations of new passenger cars in Ukraine in July this year increased 10% compared to July 2019, to 8,400 cars, the Ukrautoprom association has reported.
At the same time, in comparison with June of this year, the demand for cars grew by 15%, with May – by 40%.
The Renault brand retained its leadership position in July, increasing sales by 20%, to 1,440 cars. Toyota was second with an increase in registrations by 10%, to 1,147 cars, and Skoda was third, as in July 2019, with 457 cars sold (one third less than a year earlier).
Hyundai was at the fourth place (in July 2019 sixth position) with a 6% decrease in registrations, to 442 cars, and KIA was fifth with 429 cars sold (a fall of 28%).
The top 10 of the July market included: Volkswagen with 361 cars (a rise of 7%); Peugeot with 352 cars (a rise of 113% and seventh place compared with the 12th position in July 2019); Suzuki with 351 cars (a rise of 36%); Nissan with 332 cars (a fall of 32%); and Mazda with 279 cars (a rise of 20%).

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DTEK ENTERS RETAIL GAS MARKET

The supplier of electricity and energy saving solutions YASNO (DTEK) will also sell natural gas.
According to the company, it has already received a package of licenses for the supply of natural gas and is negotiating the conclusion of the first gas contracts with legal clients.
YASNO is also preparing to supply natural gas to households.
“We understand how convenient and profitable it is for clients to have a single supplier that simultaneously provides electricity, gas, and also helps to save money thanks to energy saving solutions and products. This is a modern European practice that YASNO will implement in Ukraine in combination with a high level of service,” Business Development Director of YASNO Oleksandr Onyshchenko said.

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METINVEST SEES 13.6% RISE IN REVENUE IN MAY

Revenue of Metinvest B.V. (the Netherlands, the parent company of the Metinvest group of steel and mining companies, grew by 13.6% in May 2020 compared with the previous month, to $843 million from $742 million.According to unaudited operational results posted by the company on Tuesday, EBITDA in May was $162 million, which is $36 million more than in April ($126 million), EBITDA from participation in JV was $16 million ($15 million in April).
According to the report, adjusted EBITDA of the metal division of the group in May 2020 totaled $39 million ($64 million in April), including minus $6 million from participation in JV (minus $1 million), EBITDA of the mining division was $112 million ($94), including from participation in JV $22 million ($16 million). Expenses of the managing company were $7 million ($6 million).
Total revenue consisted from revenue of the metal division in the amount of $631 million ($580 million in April), revenue of the mining division totaling $291 million ($240 million) and intra-group sales totaled $79 million ($78 million).
Total debt grew by $25 million in May, to $3.098 billion. At the same time, the amount of cash decreased by $10 million, to $260 million from $270 million.
The funds used in investing activities amounted to $95 million, in financial activities $27 million.

DNIPROVSKY METALLURGICAL PLANT RESTORES PRODUCTION

PJSC Dniprovsky Metallurgical Plant (DMZ, former Evraz-DMZ), a member of DCH Steel Group, owned by Oleksandr Yaroslavsky, following the launch of blast furnace and rolling shops No. 1 and No. 2 in June of the current year after maintenance works since October 2019, continues to restore and increase the production.
The company told Interfax-Ukraine that the company produced 17,000 tonnes of rolled steel in July, smelted 22,000 tonnes of steel, 20,000 tonnes of cast iron, while in June there were produced 10,000 tonnes of rolled steel, 13,000 tonnes of steel, and 18,000 tonnes of cast iron.
Previously, the company said that the enterprise is reaching the set technical parameters for the implementation of production plans.
The enterprise said in the press-release that representatives of TÜV SÜD company have carried out recertification audits of the quality management system, environmental management system at the DMZ as well as a thorough inspection of hot-rolled steel production control system for the compliance with international standards.
The auditors interacted with the leaders of subdivisions and employees, visited the workshops, the technical control department, and the central plant lab, requested the necessary documentation for each of the directions.
“The plans have been fully implemented within three days. During the final meeting with the working group, the auditors have confirmed that all systems at the enterprise operate according to the standards. They [auditors] will advise issuing DMZ certificates of conformity to the TÜV SÜD standards. Availability of certificates entitles DMZ to ship its products to foreign customers,” reports the press release.
It was informed at the end of May of the current year that DMZ is ready to launch the blast furnace and rolling mills.
DCH’s investment programme for the development of the DCH Steel mining and metals division (DMZ and Sukha Balka Mine) envisages investments of $300 million over the next five years.
The implementation of investment projects was supported by DMZ specialists who carried out necessary maintenance works and launched the plant.
The plant focuses on the processing of steel, cast iron, rolled steel, and its products.
Since 2016, the investment in environmental programmes amounted to UAH 350 million.

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COMMERCIAL VEHICLE MARKET INCLUDING HEAVY VEHICLES 11% UP IN UKRAINE

Sales of new commercial vehicles (including heavy vehicles) in July increased by 11% compared to July 2019, to 1,163 vehicles, reports the Ukrautoprom association.
According to the association, the July sales result is 53.3% higher than the June one of the current year.
This increase in sales is primarily due to the results of the rating’s leader – Fiat, whose primary registrations grew 2.7 times by July 2019 and 2.3 times compared to June of the current year, to 257 units.
According to the data provided by Ukrautoprom, Peugeot moved to the second position in July from the fourth in June, pushing aside Renault. The demand for Peugeot vehicles doubled both compared to July 2019 and June 2020, to 164 units.
Renault has lost 38.6% of sales, ending the month with 127 registered vehicles (20% more than in June 2020). Mercedes-Benz came fourth (from the 11th position in July of the previous year) with 80 registrations against 43.
Ford entered the top five market leaders, having sold 72 vehicles in Ukraine – one unit more than a year ago.
Among the Ukrainian brands, only ZAZ entered the top twenty best-selling commercial vehicles with sales of 11 vehicles against 28 units in July 2020.
According to the statistics of the association, the market of buses of all classes in Ukraine in July decreased by almost 20% compared to July of the previous year but increased by 7.4% compared to June 2020, to 101 units.
The first place, as well as the last month, is occupied by Otaman buses of Cherkasy Bus Plant with the registration of 43 buses compared to 24 in July of the previous year and 45 buses in June of the current year.
Ford takes the second position climbing from the fourth in June, the demand for buses of this brand increased to 25 units – from 19 units in July 2019 and 10 units in June 2020, and the Ukrainian Etalon, which takes the third position, sold 10 buses comparing to six and 11, respectively.
The Ukrainian Ruta was fourth (five units against eight a year earlier), Hyundai was fifth with five buses (and none in July 2019).

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UKRAINE INTERNATIONAL AIRLINES MAKES ADJUSTMENTS TO AUGUST FLIGHT SCHEDULE – FULL LIST

Ukraine International Airlines (UIA), due to the extension by the European Union of the ban on free crossing of the Schengen border for Ukrainian citizens, is making new adjustments to its August flight schedule.
The press service of UIA reported on Tuesday that in particular, until the end of August, flights to the following destinations are completely canceled: Larnaca (LCA), Frankfurt (FRA), Baku (GYD), Prague (PRG), Vienna (VIE), Chisinau (KIV), Berlin (TXL), Athens (ATH), Rome (FCO), and Barcelona (BCN).
Domestic flights in August, the airline will operate to the following destinations: Odesa (ODS), Kherson (KHE), and Lviv (LWO).
Flights to Kherson will be operated every Wednesday, Friday and Sunday, and back – every Monday, Thursday, and Saturday.
Flights from Kyiv to Odesa will be operated daily, and the Kyiv-Lviv-Kyiv flight will be performed in the Lviv direction on August 21 and August 28 with a return on August 24 and August 30.
UIA plans to operate international flights to the following destinations: Kyiv – Amsterdam (AMS) – Kyiv, Kyiv – London (LGW) – Kyiv, Kyiv – Paris (CDG) – Kyiv, Kyiv – Toronto (YYZ) – Kyiv, Kyiv – Nice (NCE) – Kyiv, Kyiv – Dubai (DXB) – Kyiv, Kyiv – Istanbul (IST) – Kyiv, Odesa – Istanbul (IST) – Odesa, Kyiv – Tel Aviv (TLV) – Kyiv, Odesa – Tel Aviv (TLV) – Odesa, Kyiv – Milan (MXP) – Kyiv, Kyiv – Naples (NAP) – Kyiv, Kyiv – Munich (MUC) – Kyiv, Kyiv – Yerevan (EVN) – Kyiv, Kyiv – Madrid (MAD) – Kyiv, and Kyiv – Cairo (CAI) – Kyiv.
Frequency changes will take place on the following routes: Kyiv – London (LGW) – Kyiv (due to unstable demand on the route, there are flights to London on August 9, August 28, August 30 and August 31); Kyiv – Nice (NCE) – Kyiv (return flights every Saturday); Kyiv – Toronto (YYZ) – Kyiv (flights are planned on August 1, August 15 and August 29 with the return to Kyiv on August 2, August 16 and August 30, respectively); Kyiv – Milan (MXP) – Kyiv (weekly return flights); Kyiv – Naples (NAP) – Kyiv (return flights every Saturday); Kyiv – Dubai (DXB) – Kyiv (on Fridays and Saturdays until August 28, with an additional frequency on August 5 and will operate on Thursdays between August 13 – August 27); Kyiv – Istanbul (IST) – Kyiv (every Tuesday, Thursday, Saturday and Sunday, as well as on August 5 and additionally on Fridays from August 7 to 28); Kyiv – Tel Aviv (TLV) – Kyiv (every Thursday, Saturday and Sunday, as well as August 31); Kyiv – Madrid (MAD) – Kyiv (on Fridays from August 7 to August 28, as well as August 31).
All other routes remain unchanged, UIA said.

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