Business news from Ukraine

Business news from Ukraine

Almost 25 thousand apartments were built in Ukraine in January-March

In Ukraine in January-March 2023, 1.942 million square meters of housing was commissioned, said the State Statistics Service (Derzhstat).
According to the report, the total is 24905 apartments, of which 4922 in single-family houses, 19983 – in apartment buildings.
Most of the housing is commissioned in the Vinnitsa region – 5669 apartments. In the Kiev region 3621 apartments were added to the housing fund, 2312 in the Kiev region, 1847 in the Lviv region, 1580 in the Ivano-Frankivsk region, 1166 in the Odessa region, 1126 in the Dnipropetrovsk region, 1052 in the Volynsk region, Cherkassy – 891, Kharkiv – 888, Transcarpathian – 795, Ternopil – 703, Rivne – 683, Poltava – 637, Khmelnytsky – 563, Chernivtsi – 530, Sumy – 333, Zhytomyr – 231, Chernihiv – 132.
Less than a hundred new apartments were commissioned in the regions of Mykolaiv (79), Kirovograd (50), Zaporizhzhia (12) and even in Donetsk (5). Not a single new dwelling was commissioned in the first quarter of 2023 in Lugansk and Kherson regions.
Data for the first quarter of 2022 Gosstat did not publish. At the end of 2022, the commissioning of housing in Ukraine decreased by 37.8% compared to 2021 – up to 7 million 110.2 thousand square meters. m.

Portfolio of bonds of internal state loan of non-residents decreased by 11.6 billion UAH

Non-residents decreased by 21.5% (UAH 11.565 bln) to UAH 42.274 bln, compared to UAH 53.839 bln the previous day.

Portfolio of government bonds owned by legal entities decreased by 2.747 billion UAH (2.4%) to 113.614 billion UAH from 116.361 billion UAH on the previous day. Individuals reduced government bonds portfolio by UAH 1.049 billion (2.6%) to UAH 38.627 billion from UAH 39.675 billion the previous day, banks of Ukraine – by UAH 0.539 billion (0.1%) to UAH 543.739 billion.

According to the NBU, UAH 15.919 bln (1.1%) decreased from UAH 1451.694 bln to UAH 1435.775 bln.

Official exchange rate on May 25 – 36.5686 UAH/USD1

Dnipropetrovsk Aggregate Plant reduced its net profit by 23.6%

JSC “Dnipropetrovsk aggregate plant” (DAZ, Dnipro) in January-March 2023 received a net profit of 14.06 million UAH, which is 23.6% less than in the first quarter of 2022.
According to the company’s interim statements, published on Thursday in the information disclosure system of the National Commission on Securities and Stock Market (NKTSBFR), its net income increased by 8% – to UAH 55.47 million.
DAZ reduced its operating profit by 20.5% to UAH 20.31 mln, and its gross profit by 3.2% to UAH 34.39 mln.
Compared with the beginning of 2023 current liabilities of DAZ increased by 6.3% to UAH 281.34 million, while long-term liabilities decreased by 4.6% to UAH 68.13 million.
As noted in the report, the main risk factor for DAZ remains the military aggression of the Russian Federation against Ukraine. This affects the inflationary processes, affecting the growth of prices for materials, equipment and energy resources, and reduces the possibility of receiving funds amid growing needs for them.
DAZ is an enterprise with many years of experience in the production of aircraft equipment, which accounts for more than 2/3 of the total production volume, as well as hydraulic equipment for mines and general technical products (fuel and other liquid pumps).
Most of the products are sold in Ukraine, but in recent years there has been a significant increase in supplies to the EU
As it was reported, in 2022 the plant received UAH 36.72 mln of net profit, which is 15.6% more than a year before, while net profit increased by 1.4% to UAH 175.56 mln. The profit was directed to the development of production
DAZ believes that one of the key factors for its development in 2023 is to expand its stock of orders by 1.5 times by 2022.

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Passenger flow through western border of Ukraine in march 2023, thousand (graphically)

Passenger flow through western border of Ukraine in march 2023, thousand (graphically)

Source: Open4Business.com.ua and experts.news

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Oil prices fall, Brent – below $77 barrel

Oil prices are falling sharply on Thursday afternoon amid a strengthening U.S. dollar and after Wednesday’s release of data on a significant reduction in U.S. inventories.
July Brent crude futures on London’s ICE Futures exchange stood at $76.94 a barrel by 2:26 p.m. Thursday, down $1.42 (1.81%) from the previous session’s closing price.
The price of WTI crude futures for July on the New York Mercantile Exchange (NYMEX) electronic trading was down $1.46 (1.96%) to $72.88 a barrel by that time.
The DXY index, which shows the value of the U.S. dollar relative to the six major world currencies, is up 0.2% in trading, making oil less attractive to holders of other currencies.
Meanwhile, the oil and gas industry is expected to increase upstream investment by 7% in 2023, to more than $500 billion, the International Energy Agency (IEA) points out in its annual World Energy Investment Outlook.
“Many major oil and gas companies have announced expansion of investment programs due to record revenues,” the IEA notes. – However, due to uncertainty about relatively long-term demand, cost concerns, and calls from many investors and owners to focus on profitability as opposed to production growth, only the major oil state companies in the Middle East will spend much more in 2023 than in 2022, and this is the only part of the sector where investment will exceed pre-pandemic levels.”
The day before, we also learned that U.S. oil inventories fell by 12.456 million barrels last week. This is the sharpest drop since November 2022, Trading Economics wrote.
Gasoline reserves fell by 2.05 million barrels and distillates by 561,000 barrels.
Experts polled by S&P Global Commodity Insights expected oil reserves to decrease by 500 thousand barrels, gasoline reserves to decrease by 2.1 million barrels and distillates reserves to decrease by 600 thousand barrels.

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Selection of recovery projects with attraction of financing from European Investment Bank begins

The European Investment Bank (EIB), together with the Ministry for Communities, Territories and Infrastructure Development of Ukraine, announced the launch of the selection of projects for the recovery, rebuilding and overhaul of schools, kindergartens, administrative centers and housing and utility services, and providing housing for internally displaced persons (IDPs), the press service of the Ministry of Restoration has said.
The projects will be implemented through financial agreements between Ukraine and the EIB. These are the Ukraine Recovery Programme (projects from local governments) and the Emergency Loan Program for the Reconstruction of Ukraine (projects of public utilities and municipalities).
As the ministry said in the press release, the projects will be implemented in regions affected by the armed aggression of the Russian Federation and faced a burden on social infrastructure due to a significant number of IDPs. The project implementation period is from one to three years, depending on the programme. The funds will be sent to the communities as a subvention from the state budget.
The deadline for submitting projects for participation in the Ukraine Recovery Programme is until June 25, 2023, in the Emergency Loan Program for the Reconstruction of Ukraine – until June 2.