Astarta agroindustrial holding, the largest sugar producer in Ukraine, in January-March 2018 saw an 86% fall in net profit year-over-year, to UAH 124.3 million, the company has said on the website of the Warsaw Stock Exchange (WSE). According to the press release, revenue over the period fell by 28.7%, to UAH 3.04 billion, gross profit – 58.3%, to UAH 623.032 million and operating profit – 86%, to UAH 141.36 million.
There are several reasons for this: markets cyclicality, macroeconomic factors, as well as a high comparison base. “Our view is that results should be regarded in a long-term context, so as not to distract from the bigger picture,” the company said.
In euros net profit fell by 88%, to EUR 3.7 million and revenue fell by 38.8%, to EUR 90.59 million.
Earnings before interest, taxes, depreciation and amortization (EBITDA) fell by 70%, to EUR 13.47 million as a result of significant contraction of the global and local sugar prices as well as bad weather conditions in the Poltava region contributed to a higher cost in sugar and farming.
At the same time, when one takes a longer-term view, there are several reassuring thoughts. The group is currently moving through the bottom part of the commodities cycle with low debt, a strong balance sheet, constantly increasing operational efficiency, and a healthy combination of local sales and export.
“There were several similar periods in Astarta’s 25-year history, when the challenges made our company stronger and provided for new growth opportunities,” the company said. With strong support from our financial partners – development and international banks, the company continue its investment program to expand storage infrastructure, further streamline farming operations, and become closer to our end-customers.
The Ukrainian government has approved a list of large enterprises for privatization in 2018. It includes 26 enterprises: five regional electricity supply companies, Centrenergo, Odesa Port-Side Plant, Turboatom, Zaporizhia Titanium and Magnesium Combine, United Mining-Chemical Companyand Sumykhimprom.
“We are selling them to make investments and enterprises work efficiently. We need to attract qualified advisers to privatize large enterprises… We will get it over with the shadow privatization in Ukraine by this decision,” Prime Minister Volodymyr Groysman said, commenting on this decision at a meeting on Thursday, predicting a strong confrontation of opponents to this approach.
Head of the State Property Fund Vitaliy Trubarov said that 18 enterprises are already in the Fund’s management, including Ternopiloblenergo (50.999%), Zaporizhiaoblenergo (60.2475%), Kharkivoblenergo (65.001%), Mykolaivoblenergo (70%) and Khmelnytskoblenergo (70.0089%), Kherson (99.8328%), Dniprovska (99.9277%), Kryvy Rih (99.9864%) and Severodonetsk combined heat and power plants (CHPPs), Azovmash (50%), Turboatom (75.2241%), Zaporizhia Titanium and Magnesium Combine (51%), Oriana (99.9988%), Aluminum foil plant (state-owned enterprise), President Hotel (100%), Centrenergo (78.289%), Odesa Port-Side Plant (99.5667%) and Sumykhimprom (99.9952%).
Trubarov said that three enterprises are managed by the Ministry of Economic Development and Trade: United Mining-Chemical Company (100%), Electrotyazhmash and Dniprovsky Electric Locomotive Plant (state-owned enterprises), two more facilities are in the management of the Ministry of Agrarian Policy and Food – Agrarian Fund and the State Food-Grain Corporation of Ukraine (100%) and one each are subordinated to the Ministry of Energy and Coal Industry, the Cabinet of Ministers and the Ministry of Health: the Coal Company Krasnolymanska (state-owned enterprise), Ukragroleasing (100%) and Indar (70.7016%) respectively.
One troy ounce=31.10 grams
The government of Ukraine has approved the strategy for the revival of the national aircraft industry for the period until 2022.
The relevant draft resolution of the Cabinet of Ministers, developed by the Ministry of Economic Development and Trade, was adopted at a government meeting on May 9 without discussion. The Ministry of Finance was instructed to finalize the document within three days.
According to the draft document available to Interfax-Ukraine, the main activities of the strategy include expanding opportunities for the industry’s participation in public-private partnership projects through amending the list of state property objects that can be transferred to concession, approved by the Cabinet in 1999; improving the procedure for obtaining by aviation industry enterprises of licensing documents in the field of export control; cheapening of loans of Ukrainian banks for the development of new aircraft models; certification of aircraft engines of Ukrainian production in the EU; carrying out work on substitution of Russian components import; the development and approval of the concept of the state targeted scientific and technical program for the development of the aviation industry for 2018-2022, as well as the state program itself.
Among the main measures of the strategy are also the reorganization of state enterprise Antonov into Antonov holding company; organization of modernization and production of Mi-2MSB and Mi-8MSB helicopters for the needs of the army and law enforcement agencies, as well as for exports; the creation and organization of a multipurpose light helicopter with a take-off mass of 4-5 tonnes within the framework of Korolek MSB-2; the organization of production of a helicopter with a take-off weight of 7-8 tonnes; the organization of production of blades and helicopter gearboxes for the Mi family helicopters.
The State Property Fund of Ukraine (SPF) has announced a tender to lease part of the engineering facilities of the coolant system of facilities of the Chornobyl nuclear power plant (NPP) on the area of 2.5 million square meters for construction of a solar power plant, First Deputy SPF Head Dmytro Parfenenko has said.
“We are accepting bids from May 10 through May 20 inclusively… The tender will be held on May 29,” he wrote on his Facebook page.
The starting price will be the largest sum proposed by the bidders (no lower than UAH 14,170 a month (VAT not included).
The condition for participating in the tender is experience in building and operating solar power plants with a capacity of at least 50 MW.
The site for placing the plant will be leased for 49 years. The capacity of the facility could reach 100 MW, according to the fund’s calculations.
As reported, earlier the Enerparc AG – Rodina Energy Group consortium built a pilot solar power plant with a capacity of 1 MW near the Chornobyl NPP.
