The European Bank for Reconstruction and Development (EBRD), together with Ukrenergo, is developing a project of building a 200 MW energy storage system to regulate frequency in the energy system, Olga Yeriomina, the EBRD senior banker for power and energy projects, said.
“The EBRD, together with Ukrenergo, is really working on a project to build an energy storage facility that would not need a feed-in tariff and that could solve the issue of regulatory capacities and reduce the price of electricity in the market. We are considering the possibility of financing a 200 MW construction,” she said at an online meeting at the Energy Club.
She clarified that the matter concerns a project, which is to be financed through an EBRD loan under state guarantees.
“With regard to regulation, Ukrenergo is obliged to provide system services, and these 200 MW will not participate in trading in the market, this will be a system service. An increase in the current tariff of the operator will not be required,” she added.
At the same time, she noted the growing need of the Ukrainian energy system for balancing capacities, which causes the need for the fastest government decisions in this direction.
“We see the situation with the shutdown of nuclear power plants. It’s hard for us now to figure out where the technical necessity is, where repairs are needed, and where administrative intervention is. But the faster the Ukrainian government structures would support our project idea, the faster the issue of flexible generating capacities would be resolved. There are a lot of distortions in the market, and we need to make up for time, take quick and decisive steps,” the banker said.
Kyivshliakhbud road construction company from RDS group of road construction companies intends to participate in tenders for the completion of the N-14 Mykolaiv-Kirovohrad road and the construction of the M-05 Kyiv-Odesa road in Odesa region, company CEO Oleksandr Raschupkin has said.
“There was information that it is planned to build a concrete road that will connect the ports of Kherson and Mykolaiv. We will also be interested in this project. We have already made large investments in concrete laying technologies, and in this segment we are very competitive,” he said in an interview with the Interfax-Ukraine agency.
Speaking about the current work, he noted that Kyivshliakhbud operates at seven sites in Kyiv, therefore, it is in strict compliance with quarantine restrictions. In particular, antiseptics, masks were purchased at all bases and dormitories, sanitary treatments were carried out, rapid tests that are used for the most minimal colds were purchased, 20 medical staff conduct daily temperature measurements for all employees. According to the director, at the end of April there were no COVID-19 patients from the company.
He also said that under a “moderately optimistic” scenario, involving the passage of the peak of the pandemic in the first half of the year, the company will be able to additionally employ about 300 people by the end of the year.
According to the head, despite the quarantine, there is no shortage in the supply of goods and services from contractors.
He also expressed hope that the company will act as a consultant on the further infrastructure development of Kyiv and other cities.
“I see a strategy in that the general plan for building the city is coordinated with Kyivavtodor and it would be possible to lay the replacement of all networks there. We also need studies regarding traffic, this is what you lay for 5-7 years in advance depending on the construction of residential and non-residential buildings,” he said.
The CEO added that despite the pandemic, the company and the group remain interested in entering neighboring markets.
“We constantly monitor announced tenders in Bulgaria, Moldova, Romania, Poland, these countries are close to us, although they have their own nuances. If we meet the qualifications of the organizers of tenders, of course we will file bids, we have ambitions and skills,” he said.
Speaking about new technology, Raschupkin expressed the opinion that in Kyiv concrete roads can be built on large avenues or on circular highways.
RDS Group is included in the top three road building companies of Ukraine. Its structure includes Kyivshliakhbud and Rostdorstroy. The core business is construction, reconstruction and maintenance of roads and bridges, construction of airfield complexes.
The net profit of Bank Pivdenny (Odesa) in January-March 2020 amounted to UAH 30 million, which is 63.68% less than in the same period in 2019 (UAH 89.59 million), according to the quarterly bank statements.
According to the report posted on the bank’s website, net interest income for the first quarter of 2020 amounted to UAH 361.28 million, which is 2.8% more than for the first quarter of last year.
In January-March 2020, the bank’s assets increased by 1.7%, to UAH 27.14 billion, including loans to customers by 18.9%, to UAH 15.53 billion.
The bank’s liabilities since the beginning of the year grew by 2.1%, to UAH 24.35 billion, including obligations to customers by 4.7%, to UAH 20.54 billion.
The bank’s net worth in January-March 2020 decreased by 1.7%, to UAH 2.79 billion.
The charter capital remained at the level of UAH 1.34 billion.
Bank Pivdenny was founded in 1993.
National bank of Ukraine’s official rates as of 06/05/20
Source: National Bank of Ukraine
Official rates of banking metals from national bank as of May 06
One troy ounce=31.10 grams
Milkiland, a dairy group with assets in Ukraine, Russia and Poland, received EUR 11.6 million in net loss in 2019, which is 41.2% less than in 2018.
According to the group’s annual report on the website of the Warsaw Stock Exchange, its revenue fell by 5.2%, to EUR 125.76 million over 2019.
The gross profit of the group compared to 2018 decreased by 15.6%, to EUR 16.46 million. Milkiland increased its operating loss by two times, to EUR 20.44 million in 2019.
The group’s EBITDA decreased by 72.2%, to EUR 585,000, EBITDA margin was 0.5% in 2019 compared to 1.6% in 2018.
The company’s net liabilities decreased by 10.4%, to EUR 76.71 million by the end of 2019. The total assets of the company increased by 17% and as of December 31, 2019, amounted to EUR 177.81 million.
The revenue in the segment of whole milk products decreased by 11%, to EUR 57.64 million in 2019 compared to 2018 (46% of total revenue); in the segment of cheese and butter by 17%, to EUR 42.11 million (33%); in the segment of milk powder and other products increased by 52%, to EUR 26 million (21%).
The Russian market generated 57% of the revenue of Milkiland, the Ukrainian market had 40%, the Polish market had 3% in 2019.
The company said in the statement that in 2019 Milkiland, on the one hand, increased the presence in export markets, on the other, experienced difficulties caused by adverse changes in the macroeconomic situation, as well as the difficult situation in dairy markets in the main countries of operation.
In particular, Milkiland continued its expansion into the Chinese dairy market, supplying dried milk products to this country. The group also supplied kosher dairy products, such as dried milk products and butter, to Israel.
In the dairy market of Ukraine, the company faced rising costs for raw materials amid rising prices for raw milk at farms (8% more on average in 2019 year-over-year). According to the company, this trend, as well as the revaluation of the hryvnia to euro, led to the fact that, as of December 31, 2019, prices for raw milk in Ukraine were 19% higher than in EU compared to the beginning of 2019, which provoked a sharp increase in imports of dairy products (48% year-over-year), primarily from EU to Ukraine.
Milkiland said that imports put pressure on Ukrainian manufactures, especially cheese producers, and many of them were on the verge of zero profitability (cheese imports increased by 73% in 2019, compared to 2018).
Milkiland intends to complete the process of changing registration by the end of August 2020.
