Business news from Ukraine

Business news from Ukraine

Ukrainian agrarians harvested 63.2 mln tons of crops in 2023

Agrarians in all regions of Ukraine harvested 67 mln tonnes of grains and oilseeds, including 47.184 mln tonnes of grains and 19.958 mln tonnes of oilseeds, the press service of the Ministry of Agrarian Policy and Food reported.

According to the report, grain and leguminous crops were harvested on an area of 9324.6 thousand hectares with a yield of 50.6 c/ha.

To date, Ukraine has completed harvesting and threshing of barley from 1505 thousand hectares (101% of the plan), which yielded 5.890 million tons; wheat – from 4695 thousand hectares (101%), 22.409 million tons were harvested; peas – from 154.4 thousand hectares (103%), 398.2 thousand tons were harvested, and rapeseed – from 1396 thousand hectares (98%), 4.005 million tons of seeds were harvested.

The harvest of millet is nearing completion, with 178.6 thou tons harvested from 78.7 thou hectares (94%), and buckwheat – 206.5 thou tons harvested from 138.7 thou hectares (98%). Corn was harvested from 2420.1 thou hectares (60%), amounting to 17.133 mln tons.

In addition, other grains and legumes were harvested in the amount of 969.3 thou tons from 333.8 thou hectares.

Ukraine continues harvesting oilseeds, including sunflower – 11.310 million tons (11.074 million tons a week earlier) from 4.776 million hectares (94%), soybeans – 4.643 million tons (4.507 million tons) from 1.765 million hectares (97%).

Sugar beet was harvested from 183.8 thou hectares (155.4 thou hectares a week earlier), which is 50% of the planned area. The harvest amounted to 8.729 mln tons.

The Ministry of Agrarian Policy also monitors information on crop yields, which amounted to 47.7 c/ha for wheat, 39.2 c/ha for barley, 25.8 c/ha for peas, 22.7 c/ha for millet, and 14.9 c/ha for buckwheat. The yield of corn is 70.8 c/ha, rapeseed – 28.7 c/ha, soybeans – 26.3 c/ha, sunflower – 23.7 c/ha. The yield of sugar beet is 475 c/ha.

At the same time, the Ministry clarified that the largest grain harvest was recorded in Vinnytsia region, where farmers harvested almost 4 million tons. Cherkasy, Kirovograd, Poltava, Odesa and Dnipro regions harvested more than 3 million tons of grain each. Agricultural producers in Kyiv, Mykolaiv, Ternopil, Sumy, Khmelnytsky, and Chernihiv regions harvested 2 million tons of grain each.

The highest sunflower harvest was in Dnipropetrovska oblast – 1428 thou tons and Kirovohradska oblast – 1426 thou tons. The leader of soybean harvest is Khmelnytsky region – 576.9 thsd tonnes.

As reported, this season winter wheat plantings amounted to 4166 thou hectares (-834 thou hectares compared to the previous season), winter barley – 536 thou hectares (-255 thou hectares), and rapeseed – 1374 thou hectares (+110 thou hectares).

According to the adjusted forecast of the Ministry of Agrarian Policy, in 2023, farmers will be able to harvest 79.1 mln tons of grains and oilseeds, including the following volumes: wheat – 21.7 mln tons, barley – 5.7 mln tons and corn – 28.5 mln tons. Gross production of oilseeds will reach 21.6 million tons, including 13 million tons of sunflower, 4 million tons of rapeseed, and 4.6 million tons of soybeans. The sugar beet harvest is forecast at 13.7 million tons.

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Ukrnafta increased sales of non-fuel checks by 43% and non-fuel goods by 58%

In January-October 2023, PJSC Ukrnafta sold 3.7 million non-fuel checks, which is 43% more than in 10 months of 2022, and 7.15 million units of non-fuel products, which is 58% more than in the same period last year.

“In general, the turnover in January-October 2023 increased by 30%, adjusted for inflation,” the company said in a press release on Friday.

According to the company, the conversion rate – the ratio between non-fuel and fuel receipts – increased by 78%, from 0.13 to 0.23.

“Ukrnafta’s goal is to reach a one-to-one ratio in fuel and non-fuel sales. We are developing the network to ensure that customers receive not only European quality Euro-5 fuel, but also all the necessary goods and services,” the company said.

As reported, Ukrnafta, which has been fully controlled by the state since the end of 2022, has set a strategic goal to double oil and natural gas production to 3 million tons and 2 billion cubic meters by 2027, respectively. In 2023, the company plans to increase oil production by 5.8% year-on-year to 1.447 million tons and gas production by 0.3% to 1.04 billion cubic meters.

“Ukrnafta holds 87 special permits for hydrocarbon production.

Ukrnafta’s network of filling stations includes 537 stations in almost all regions of Ukraine. Of these, 456 are operational. The company is implementing a comprehensive program to restore operations and update the format of its filling stations.

NJSC Naftogaz of Ukraine owns 50% + 1 share in PJSC Ukrnafta.

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DIM joined program “eVidnovlennya”

DIM Group of Companies has joined the program of restoration/compensation of destroyed housing from the Ministry of Community Development of Territories and Infrastructure, the press service of the company reported.

As reported, from November 5 begins the issuance of housing certificates for exchange for new housing for Ukrainians whose housing in the non-occupied territories as a result of Russian aggression was destroyed. Objects for the purchase of housing on certificates can be already built or objects at the final stage of construction.

DIM Group of Companies will work with all financial institutions that will lend under the state programs, these are state banks, Oschadbank, Sense, PrivatBank, and commercial banks.

Ukrainians will be able to realize their housing certificates in the residential complexes Metropolis and Lucky Land, located in Kiev and the countryside complex Park Lake City in the village of Podgortsy, Kiev region.

As it was reported, since August 1 in “DII” started accepting applications under the program “eVidnovolneniya for compensation for housing destroyed because of the war. Compensation will be paid to sole owners of housing, which was destroyed due to hostilities after February 24, 2022, is not subject to reconstruction and is located in the non-occupied territory and not in the zone of active hostilities. As of the beginning of November, more than 5 thousand applications for compensation for destroyed housing have already been received, and a fifth of them have already been processed, having approved the issuance of 422 housing certificates for a total amount of UAH 811 million.

DIM Group was founded in 2014 consists of six companies covering all stages of construction. To date, it has commissioned 12 houses in six residential complexes with a total residential area of more than 218 thousand square meters. Six residential complexes of “comfort+” and “business class” category are under construction: “New Autograph”, “Metropolis”, Park Lake City, Lucky Land and others.

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Zaporozhkoks increases production by 20% in January-October

Zaporozhkoks, one of Ukraine’s largest coke and chemical producers and a member of Metinvest Group, increased its blast furnace coke production by 19.5% year-on-year to 715.1 thousand tons from 598.6 thousand tons in January-October this year.

According to the company, in October 2023, it produced 72.6 thousand tons of blast furnace coke, while in October 2022 – 70.6 thousand tons (an increase of 2.8%).

“In 2022, Zaporozhkoks reduced blast furnace coke production by 11.9% compared to 2021 to 737.4 thousand tons, including 70.8 thousand tons of coke produced in December.

“Zaporozhkoks produces about 10% of coke in Ukraine and has a full technological cycle of processing coke products. It also produces coke oven gas and pitch coke.

“Metinvest is a vertically integrated mining group of companies. Its major shareholders are SCM Group (71.24%) and Smart Holding (23.76%), which jointly manage the company.

Metinvest Holding LLC is the management company of Metinvest Group.

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Ukrposhta reduced its net loss by 15%

In January-September 2023, Ukrposhta JSC reduced its net loss by 15% compared to the same period last year – to UAH 594.8 million, according to the company’s report in the information disclosure system of the National Securities and Stock Market Commission (NSSMC).

According to the report, the state-owned company’s net income increased by 12% to UAH 8.36 billion.

The company’s operating expenses increased by 11.4% to UAH 9.3 billion. In particular, material costs increased by 27.9% to UAH 1.1 billion, and labor costs by 11.9% to UAH 4.5 billion. Social contributions increased by 3.8% to UAH 986.6 million. Depreciation and amortization increased by 23.9% to UAH 510.9 million. Other operating expenses increased by 4.6% to UAH 2.2 billion.

Long-term loans from banks increased by 4.3% to UAH 863.11 million in the first nine months of the year. Short-term loans remained unchanged at UAH 3.38 million.

The report also notes that as of September 30, the company violated financial covenants under a loan agreement with the European Bank for Reconstruction and Development (EBRD). It is specified that in September, Ukrposhta received confirmation from the EBRD of the bank’s intention not to charge long-term repayment on the loan and the risk to the company is minimal.

“The EBRD management has confirmed its intention to further cooperate with Ukrposhta in the implementation of projects. Accordingly, the EBRD loan liability was classified as non-current as of September 30, 2023,” the report says.

According to the report, Ukrposhta continues to operate in the context of the military conflict with Russia. As of the reporting date, parts of Donetsk, Luhansk, Kherson, and Zaporizhzhia regions remain occupied, with about 12% of post offices located there. As of September 30, the company has 27.36 thousand points of presence, employing 35 thousand employees (in the first half of the year there were 25.5 thousand points of presence and 45 thousand employees).

The company also reported that it has UAH 3.3 million of C series bonds at par with a maturity date of November 18 this year.

Earlier it was reported that in the first half of the year Ukrposhta increased its net loss by 27.0% compared to the same period last year to UAH 653.7 million. Its net income increased by 20.0% to UAH 5 billion 580.13 million.

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Zaporizhstal increased rolled steel output by 41%

In January-October this year, Zaporizhzhia Iron and Steel Works “Zaporizhstal” increased its rolled steel output by 40.6% year-on-year to 1 million 652.5 thousand tons.

According to the company’s information on Thursday, steel production during this period increased by 49.7% to 1 million 997.5 thousand tons, and pig iron production by 27.1% to 2 million 190.3 thousand tons.

In October 2023, Zaporizhstal produced 267.3 thousand tons of iron, 251.7 thousand tons of steel, and shipped 208.6 thousand tons of rolled products, while in the previous month it produced 257.9 thousand tons of iron, 239.7 thousand tons of steel, and shipped 200.4 thousand tons of rolled products, and in October 2022 – 157 thousand tons of iron, 121.7 thousand tons of steel, and 101.8 thousand tons of rolled products.

“The increase in production in October 2023 compared to the same period last year is due to the removal of blast furnace No. 2 from hot mothballing and the establishment of three blast furnaces,” the press release explains.

As a reminder, due to the escalation of hostilities in the region, Metinvest Group put some of Zaporizhstal’s equipment into hot mothballing mode in early March 2022. At the end of March of the same year, the plant partially resumed the operation of its cold rolling mill to produce and ship cold-rolled coils to European customers. A month after the forced shutdown, the plant brought its equipment out of mothballing and partially resumed production. The plant is currently operating at an average of 70% of its capacity.

As reported, in 2022, Zaporizhstal reduced its rolled steel output by 60.4% compared to 2021, to 1 million 304.3 thousand tons, steel by 61.7%, to 1 million 491.3 thousand tons, and pig iron by 54.3%, to 2 million 9.9 thousand tons.

“Zaporizhstal is one of the largest industrial enterprises in Ukraine, whose products are in great demand among consumers both in the domestic market and in many countries around the world. The plant specializes in high-quality steel hot-rolled coils, hot-rolled sheets, cold-rolled sheets, cold-rolled coils made of carbon and low-alloy steels, as well as steel strips, ferrous tin, and bent sections.

The main consumers of the products are producers of welded pipes, automotive, transport and agricultural machinery companies, and manufacturers of household appliances.

“Zaporizhstal is in the process of integration into Metinvest Group, whose major shareholders are System Capital Management (71.24%) and Smart Holding Group (23.76%).

Metinvest Holding LLC is the management company of Metinvest Group.

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