Business news from Ukraine

Business news from Ukraine

DTEK OIL & GAS EXTRACTS 1.6 BCN OF GAS IN 2018

DTEK Oil & Gas extracted 1.649 billion cubic meters (bcm) of natural gas in 2018, which is almost the same as in 2017 (1.65 bcm), the company’s press service has reported.
The press service said that in general, the gas production target was met by 103%.
The company produced 51,500 tonnes of gas condensate, which is 4.6% less than in 2017 (54,000 tonnes).
At the end of the year, DTEK Oil & Gas drilled wells No. 25 and No. 61 at the Semyrenkivske field, finalized an investment project for the construction of a propane-refrigeration unit, which was launched at the Olefirivska gas pre-treatment unit in September 2018.
In addition, major overhauls were carried out to intensify production at the existing well stock, as well as a condensate stabilization gas utilization compressor at the Olefirivska gas pre-treatment unit and Semyrenkivske gas pre-treatment unit were equipped and launched, which make it possible to increase the environmental friendliness of the fossil fuel production process.
“In 2018, we confirmed our record high thanks to the increase in the efficiency of work with the existing fund and the introduction of modern technologies. We managed to produce an additional 100 million cubic meters of gas thanks to innovation,” DTEK Oil & Gas CEO Ihor Schurov said.

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ARTYOMSOL INCREASES SALT PRODUCTION BY 22%

The state salt producing enterprise Artyomsol (Artyomsalt) in 2018 produced, processed and shipped 2.1 million tonnes of salt to consumers, which is 22.4% more than in 2017. According to a press release, production of packaged salt was 197,800 tonnes, which is 1.7% more than in 2017, ground salt, shipped in bulk without additives, some 469,300 tonnes (43.9%), ground salt, shipped in bulk with an anti-caking additive, some 1.018 million tonnes (27%), and unpacked ground salt some 66,900 tonnes (35.4%).
Artyomsol also increased the production of salt, packaged in bulk bags. This type of product amounted to 82,100 tonnes, which is 17% more than in 2017. Production of iodized salt increased to 62,800 tonnes (7.7% more than in 2017).
The company exported 952,200 tonnes of salt in the 12 months of last year, which is more than 45% of the total volume of products shipped. For comparison, in 2017 the export volume amounted to 761,400 tonnes of salt.
Artyomsol in 2018 shipped salt to Hungary, Poland, Slovakia, Romania, Serbia, and other countries.

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UKRAINE INTERNATIONAL AIRLINES RAISES PASSENGER TRANSPORTATION BY 15% IN 2018

Ukraine International Airlines (UIA, Kyiv) in 2018 carried more than 8 million passengers, which is 15% more than in 2017.
According to the airline, the share of transfer passengers on UIA regular flights was 53%.
During this period, the carrier performed 61,500 flights, which is 9% more than in 2017, and the occupancy of passenger seats was 81%.
“The expansion of the network of long-haul routes and the fleet with wide-bodied aircraft made it possible to take another step forward in increasing transit traffic through Ukraine and the further growth of the hub at Boryspil International Airport,” Yevhenia Satska, the spokeswoman of UIA, said.
The volume of cargo and mail transportation reached 21,350 tonnes, which is 12% more than in 2017.
In 2018, the airline expanded the geography of international flights and began operating flights from Kyiv to Copenhagen, Cairo, Delhi, and Toronto. The map of domestic routes was complemented with the regular flight Kyiv-Vinnytsia.

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DEFICIT IN UKRAINE’S FOREIGN TRADE IN GOODS 1.7 TIMES UP IN 11 MONTHS OF 2018

The deficit of Ukraine’s foreign trade in goods in January-November 2018 increased by 66.6% compared with January-November 2017 and amounted to $8.866 billion, the State Statistics Service has reported.
According to its data, in November the deficit amounted to $920 million, whereas in October it was $1.48 billion, in September $1.46 billion, in August $940 million, in July $1.41 billion, in June $600 million, in May $630 million, April $220 million, March $460 million, February $460 million, and in January $280 million.
In January-November 2018, exports of goods compared to the same period in 2017 rose by 9.9%, reaching $43.25 billion, imports by 16.7%, to $52.11 billion.
The State Statistics Service said that in November 2018 compared with the previous month the seasonally adjusted export volume grew by 4.7%, reaching $3.98 billion, while imports decreased by 1.1%, to $4.88 billion.
The rate of coverage of imports by exports for the 11 months of this year was 0.83 against 0.88 in January-November 2017.
The State Statistics Service said that foreign trade operations were conducted with partners from 220 countries of the world.

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ARCELORMITTAL INCREASE INVESTMENTS IN UKRAINE BY 31% IN 2018

PJSC ArcelorMittal Kryvyi Rih (Dnipropetrovsk region) in 2018 increased its capital and operating expenses by 31.6% compared to 2017, to $443.4 million from $337 million.
According to a press release of the company, $348.8 million were capital investments, $94.6 million were operating costs.
In 2019, the company intends to invest more than $450 million.
At the same time, the press service clarifies that one of the key projects in 2018 is the construction of two new continuous casting machines worth about $144 million. Hot tests of one of the continuous casting machines will begin in February of this year. It is also planned to complete the reconstruction of small section mill No. 250-4 in spring, the volume of investments in it will be about $55 million.

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FIRST FACTORING CONTRACT IN ENERGY SERVICE AREA SIGNED IN UKRAINE

KyivESKO LLC and JSC Commercial Industrial Bank on January 14, 2019 signed a first energy service contract in Ukraine for the amount of around UAH 3 million, using the factoring tool. The Ukrainian Association of Energy Service Companies wrote on its Facebook page that the contract was signed with the technical assistance of the UNDP project and the State Agency for Energy Efficiency and Energy Saving.
The tool allows borrowing without collateralized property, the association said. The guarantee for the loan would be money flows from energy service contracts, which KyivESKO LLC has.
In August 2018, specialists of the State Agency for Energy Efficiency and Energy Saving and experts of the UNDP project studied various models of using energy service mechanisms in European countries, in particular in Latvia, where two funds for the energy service purposes using the factoring tool were created with the help of the financing from the European Bank for Reconstruction and Development (EBRD) and public funds.
The implementation of the firsts factoring contract in the energy service area would allow other companies and financial institutions to use this experience, the association said.
KyivESKO LLC signed its first energy service contract in the housing sphere with Politekhnik housing and construction cooperative in Kyiv.

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