KYIV. Nov 12 (Interfax-Ukraine) – Dutch Ozone Investment LLC (the Netherlands) and Karl Group (Germany) plan to invest up to $10 million in the projects of state-run joint-stock company Ukrainian Polymetals on producing amber and land reclamation within the next five years.
Ozone Investment CEO Thomas Bretschneider and Director General of Ukrainian Polymetals Kostiantyn Lisnychy signed a memorandum of cooperation on Wednesday.
“Amber is a high-margin business, and we don’t have problems with the attraction of investors,” Lisnychy said.
He also said that there are plans to fully legalize amber production, as today over 95% of amber is not taxed. According to the assessments of experts, the launch of state enterprise Ukrburshtyn, which is under the control of Ukrainian Polymetals, to its full capacity will give the state budget an extra UAH 30 million per year.
According to the Ukrburshtyn development plan, in the coming three to six months the enterprise plans to obtain a permit for industrial production of amber for 20 years. In addition, it plans to hire 500-1,000 people and receive a total income of $25.871 million in 2016-2018.
Lisnychy also said that Ukrainian Polymetals managed by the Economic Development and Trade Ministry of Ukraine has resumed its 100% control over Ukrburshtyn and appointed Oleh Schekin as its managing director on October 10.
“We paid UAH 4.3 million to tender creditors of Ukrburshtyn. This makes it impossible to return to the bankruptcy procedure,” he said.
A representative of the two companies-creditors – director of Green Service LLC investment company – said at the press conference that the funds have not arrived in the account of his company and the accounts of other creditors.
Managing partner of Ario Capital Group Yulian Khorunzhy said that the companies-creditors continue to resist the return of the company to the state control, including by submitting fabricated documents to the court.
KYIV. Nov 12 (Interfax-Ukraine) – Ovostar Union, a leading eggs producer in Ukraine, saw a 19% rise in net profit in January-September 2015 year-over-year, to $22.326 million, the company said in a report on the Warsaw Stock Exchange (WSE) on Wednesday.
Revenue grew by 1%, to $52.777 million, and gross profit rose by 11.4%, to $22.054 million.
The company said that its revenue grew mainly due to growth in volumes produced, steady recovery of UAH prices on the local market, and the increasing share of export sales
Operating profit increased by 25%, to $22.639 million, and earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 15%, to $24.271 million. The EBITDA margin reached 42% (40% year-over-year).
Over the first nine months of 2015 the operating cash flow of the group increased to $15.595 million ($13.009 million year-over-year). Following the group’s organic growth strategy, the volume of cash flow used in investing activities amounted to $8.618 million ($14.586 million year-over-year).
In January-September 2015, cost of sales decreased by 8% to $32.599 million due to lower prices on feed components.
Asset value decreased by 0.54%, to $101.076 million. Current assets rose by 10%, to $36.967 million and non-current assets – by 6%, to $64.109 million.
Total assets over the period grew by 32%, to $21.793 million and total equity decreased by 7%, to $79.283 million.
KYIV. Nov 12 (Interfax-Ukraine) – Secretary General of the International Organization of Securities Commissions (IOSCO) David Wright plans to visit Ukraine on November 23 and November 24 to discuss the reforms of the capital market that the country requires, Head of the National Commission for Securities and the Stock Market of Ukraine Tymur Khromayev has said.
“On November 23 and November 24, IOSCO Secretary General David Wright will come to Kyiv to discuss the required reforms of the Ukrainian capital market. This is his first visit to Ukraine. Moreover, this is the first visit of an IOSCO top manager to Ukraine,” he wrote on his Facebook page.
The press service of the commission told Interfax-Ukraine that Wright plans to meet with Ukrainian President Petro Poroshenko, and he may also meet with Ukrainian Prime Minister Arseniy Yatseniuk.
Khromayev hopes that the IOSCO secretary general will support the fundamental changes to the Ukrainian stock market foreseen in the memorandum between Ukraine and the International Monetary Fund (IMF) and the comprehensive program to develop the Ukrainian financial market until 2020.
“IOSCO has provided assistance in drawing up draft laws that would ensure the institutional and financial independence of the commission, giving us the power to take efficient measures on the regulation, supervision and law enforcement areas. The package of bills regarding our powers is to be included in the parliament’s session by the end of this year,” he said.
He also said that despite the fact that his commission is a member of IOSCO, its abilities are restricted.
“The full-featured side of the cooperation of regulators from different countries with the commission will only be realized after the signing of the Multilateral Memorandum of Understanding (MMoU IOSCO). At present, we’re not able to fulfill mutual liabilities on international cooperation along with other foreign regulators,” he said.
Khromayev said that the commission is on its way to making the required changes.
IOSCO is an international body that brings together over 120 of the world’s securities regulators and it is recognized as the global standard bearer for the securities sector.
KYIV. Nov 11 (Interfax-Ukraine) – Odesa Municipal Energy Agency intends to attract credit funds in the amount of approximately EUR400,000 from the NEFCO (The Nordic Environment Finance Corporation) for energy efficiency and energy saving measures.
Such data were promulgated by director of the project “The establishment of energy agencies in Ukraine” Robert Kuenne during the eleventh international congress “Institutional and technical aspects of reforming housing and utilities services 2015” in Kyiv.
“All these measures will be set out in the business plan, which will be available online. The total amount of funds required for the implementation of the business plan is about EUR400,000,” he told reporters.
According to the expert, Odesa energy agency plans to use the funds for the energy modernization of two kindergartens and increase energy efficiency in several budgetary institutions, as well as the modernization of street lighting.
KYIV. Nov 11 (Interfax-Ukraine) – The Kyiv authorities plan to increase funding for road repairs by at least 30% in 2016 compared to 2015, Kyiv City Administration has reported, referring to its Head Vitali Klitschko.
“There are many roads in Kyiv that require repair. We’re increasing the financing in 2016. We plan to increase it by at least 30% compared to 2015,” Klitschko said.
He said that the 2015 Kyiv city budget foresees the allocation of over UAH 1 billion to finance the road sector in the city.
He said that in 2015 the Kyiv authorities, for the first in the past years, paid attention to repairing roads in residential areas and building-adjacent territories: 570 cases of repair were registered in January-October 2015.
Klitschko also said that new road covering will be more wear-resistant and would not require repair for at least the next five years.
KYIV. Nov 11 (Interfax-Ukraine) – The State Property Fund of Ukraine (SPF) has included the integrated property complex of state-owned enterprise Aluminum Foil Factory (ZAF, Zaporizhia) in the list of objects subject to class A privatization (small privatization).
According to a fund report in the Vidomosti Pryvatyzatsii newspaper, the plant is to be sold at auction.
Under current regulations, the agency will have to select an appraiser to estimate the object before its auction.
As reported, the then state Zaporizhia Aluminum Combine (ZAlK) in 1995 attracted a $76.45 million loan under state guarantees to build a plant producing aluminum foil for food packaging, the equipment for which was supplied by Italy’s Fata. It was assumed that the production capacity will allow production of 36,000 tonnes of packaging a year, including 27,000 tonnes of smooth aluminum foil. During the subsequent privatization of ZAlK the unfinished plant was not included in its charter capital, remaining in state ownership.
