KYIV. March 17 (Interfax-Ukraine) – Some 3.49 million Ukrainian citizens travelled by air in 2016, domestic flights accounted for 36.7%, Amadeus Ukraine’s press service has reported with reference to Amadeus booking data.
The split according to the geography of flights from Ukraine was the following: Russia accounted for 8%, Turkey for 6.2%, Germany for 5.7%, Italy for 2.9%, Belarus for 2.8%, Israel for 2.3%, Austria for 2.3%, France for 2.3%, Poland for 2.3%, and the United States for 2.2%.
Spain accounted for 1.9%, Georgia for 1.8%, the Netherlands for 1.8%, the UK for 1.5%, Moldova for 1.2%, the UAE for 1.2%, China for 1.2%, Switzerland for 1.1%, Kazakhstan for 1%, and Lithuania for 1%.
The most popular destinations for domestic flights were Kyiv (27%), Odesa (3.2%), Lviv (1.7%), Kharkiv (1.7%), and Dnipro (1.1%).
Amadeus is the leading provider of IT solutions to the global tourism and travel industry. Its solutions process transactions and operations of travel agencies, airlines, hotels, railway, ship, ferry, car rent operators, and other service providers in the industry.
KYIV. March 17 (Interfax-Ukraine) – Canada’s Maritime Launch Services Ltd. (MLS) plans in 2020 to start commercial launches of satellites with the Cyclone 4M orbital launch vehicle from Ukraine.
“The preferred site is located in the Guysborough Municipality near Canso and Hazel Hill in Nova Scotia, Canada and would host a commercial launch complex,” MLS said in a press release.
An exhaustive review was conducted which assessed 14 potential locations over the last year. “The criteria evaluated through the study included access to polar/sun synchronous orbit, very low population density, proximity to multimodal transportation, and interest from the community, province and government,” the press release said.
John Isella, CEO of MLS, said: “While we have a number of challenges ahead to work through the regulatory processes, approvals and site planning, we are optimistic that we can break ground on the launch complex within a year and meet market demands with our first launch in 2020.”
MLS plans to achieve a launch rate of eight per year by 2022.
“The timing is perfect for this venture. Ukraine’s independent space industry, and the solid market for these launch services all add to our confidence in this program. The Cyclone 4M rocket will become the standard of the medium class space launch industry,” he said.
Initial funding was obtained in 2016 from United PARADYNE Corporation (UPC) in Santa Maria, CA.
“Building on the historically close ties between Canada and Ukraine, and addressing the satellite constellation launch market with an all Ukrainian medium class (3,350kg to SSO) launch service targeted at $45 million USD, are a few of the fundamental strengths of this program,” Isella added.
MLS said its key partners under this project are Yuzhnoye (Pivdenne) and Yuzhmash (Pivdenmash) in Ukraine.
KYIV. March 17 (Interfax-Ukraine) – The Ukrainian Sea Port Authority in 2017 will invest UAH 3.5 billion in modernization and development of port infrastructure, Authority Head Raivis Veckagans said at the presentation of top priority plans of the authority for 2017 in Kyiv on Thursday.
He said that UAH 1.738 billion will be sent to seaport dredging projects.
The project on reconstruction of the approach channel to deep-water berths of Yuzhny maritime merchandise port will be continued. Dredging works total 3.45 million cubic meters, the duration of the project is 29 months and a half. The total cost is UAH 1 billion and the projected depth is 21 meters.
It is also planned to start new projects, in particular, reconstruction of approaches, maneuver zones and operation water areas of the Yuzhny port. Dredging works are 4.4 million cubic meters, the duration of the project is 13 months, the projected depth is 16-19 meters and the total cost is UAH 1.436 billion.
Another project is reconstruction of the operation water area of the first bay of Dry estuary of the Chornomorsk maritime merchandise port with dredging works of 2.5 million cubic meters, the projected depth of 16 meters, the total cost of UAH 720 million and duration – nine months.
The approach channel of Chornomorsk seaport will be reconstructed: 500,000 cubic meters of dredging works, UAH 115.3 million of total cost and 16 meters of the projected depth.
Investment in infrastructure include six projects: construction of berth 1-c of Odesa maritime merchandise port with the total cost of UAH 422.4 million, reconstruction of the hydraulic engineering block of berths 3 and 4 of Mariupol seaport (UAH 333.2 million), reconstruction of the hydraulic engineering block of berth 1 of Chronomorsk seaport (UAH 88.2 million), reconstruction of the hydraulic engineering block of berth 2 of Chornomorsk seaport (UAH 700.4 million), reconstruction of berth 7 of Odesa seaport (UAH 1.066 billion) and construction of an alternative approach road to the Odesa seaport (UAH 250 million).
In general, the authority will invest UAH 930 million in infrastructure in 2017.
KYIV. March 17 (Interfax-Ukraine) – The International Finance Corporation (IFC) from the World Bank Group could invest up to $20 million into the Emerging Europe Growth Fund III, L.P. (EEGF III, Delaware, the United States) launched by Horizon Capital Advisors, LLC mainly for investment in Ukraine.
The IFC said that the board will discuss the project at a meeting on April 28.
According to the document, an equity investment by IFC would not to exceed 20% of total commitments to the fund.
EEGF III will focus on small and mid-cap companies with growth capital needs.
The co-investor in the fund could be the European Bank for Reconstruction and Development (EBRD).
IFC is an investor in Horizon’s predecessor fund (EEGF II), and IFC’s repeat participation in EEGF III will a strong vote of confidence in Horizon’s ability to implement the growth PE strategy in the target region
In addition, given IFC is an investor in Horizon’s predecessor fund (EEGF II), Fund Manager is keen to secure IFC’s repeat participation in EEGF III, as it will be considered a strong vote of confidence in Horizon’s ability to implement the growth private equity strategy in the target region.
As reported, in June 2016, OPIC (Overseas Private Investment Corporation) said that the OPIC would provide up to $37.5 million to EEGF III launched by Horizon Capital for the period of up to 10 years.
The fund with a target size of $150 million will invest in export-oriented, fast-growing, mid-size companies in Ukraine and Moldova with the potential to grow from local to regional market leaders. The fund will primarily target minority stakes in high growth Ukrainian companies. It may also invest in early-stage, buyout and privatization opportunities as they arise.
Horizon Capital was established in 2006. It manages private equity funds Western NIS Enterprise Fund (WNISEF, established in 1994 with a capital of $150 million), Emerging Europe Growth Fund, L.P. (EEGF, established in 2006 with a capital of $132 million) and EEGF II (EEGF, established in 2008 with $370 million capital).
The money of these funds is invested in projects in Ukraine, Moldova, and Belarus.
The founding partners of Horizon Capital are Jeffrey C. Neal, Mark Andrew Iwashko, Natalie Jaresko and CEO Lenna Koszarny.
KYIV. March 17 (Interfax-Ukraine) – The most important for attracting investment to Ukraine are privatization, reformation of the corporate management of state-run enterprises and land reform, Managing Director of the European Bank for Reconstruction and Development (EBRD) for Eastern Europe and the Caucasus Francis Malige has said.
He said that the top priority for investment is privatization where was no progress: there was neither the right approach nor transparency of the process. A clear decision on the privatization of state-owned banks should be made, he said, speaking at the 13th Dragon Capital Annual Ukraine Investor Conference in Kyiv on Thursday.
Malige said that the reformation of the large and ineffective sector of state-run enterprises is also important.
Some state-run enterprises are a source of corruption, he said. They are used to finance election campaigns. It is important that these enterprises are reformed before 2019 and even before 2018, as when the election campaign starts no one would see reform in this segment, he said.
The third thing is the land reform. This is what will attract large investment in the agricultural sector, Malige said.
KYIV. March 16 (Interfax-Ukraine) – Net profit of MHP S.A., the holding company of Myronivsky Hliboproduct (MHP) agricultural holding was $69 million in 2016 compared to net loss of $113 million in 2015.
According to a company report posted on the London Stock Exchange (LSE) on Wednesday, revenue last year grew by 7%, to $1.135 billion.
Gross profit rose by 6%, to $362 million from $342 million in 2015. Operating profit fell by 9%, to $317 million from $347 million.
“The main reason of the decline in operating profit is our performance in the poultry segment. Global poultry prices in 2016 were lower than in 2015. Expenses on poultry production in Ukraine grew due to a rise in the prices of grain,” CFO Viktoria Kapeliushna told Interfax-Ukraine.
Earnings before taxes, depreciation and amortization (EBITDA) in 2016 fell by 5%, to $415 million and EBITDA margin – from 41% to 37%.
” Financial results are in line with management’s expectations, with EBITDA of US$ 415 million and EBITDA margin of 37%,” MHP CEO Yuriy Kosiuk said.
Exports revwnue grew by 21.2%, to $635 million (56% of total revenue). The foreign exchange loss in 2016 was $145 million.
According to the company’s report, net loss in Q4 2016 fell almost 67%, reaching $28 million. The foreign exchange loss in Q4 2016 was $55 million.
Revenue in Q4 2016 grew by 24%, to $313 million. Exports revenue rose by 52.5%, to $180 million (58% of total revenue).
EBITDA grew by 5.9% in Q4 2016, to $72 million and EBITDA margin fell by 4%.
Among MHP targets for 2017 is to start the construction of phase 2 of the Vinnytsia project with the ultimate aim of elevating production to around 730,000 tonnes per year by 2020.
Net debt as of late 2016 was $1.08 billion compared to $1.22 billion in 2015. The net debt/EBITDA ratio was 2.6 compared to 2.8 in 2015.
Kapeliushna said that since early 2017 the company has not received subsidies from the state.
“No one received subsidies. The mechanisms for receiving them are being drawn up. I am sure that in the first quarter the subsidies would not be provided,” she said.
MHP is the largest poultry producer in Ukraine. It also deals with production of grain, sunflower oil and meat.
