Ukrgraphite (Zaporizhia) increased its net profit by 42.9 times in January-March this year as compared to the similar period of the previous year – up to UAH 70.723 mln.
According to the interim report of the company, in the first quarter the company decreased its net profit by 11% – to UAH 437.326 mln.
The undistributed profits of the company as of the end of the first quarter of this year amounted to UAH 3 bln 776.257 mln.
As it was reported, Ukrgraphit reduced net income in 2022 by 41.4% compared to the previous year – to UAH 1 billion 545.562 million and received a net profit of UAH 52.584 million, while it ended 2021 with a net loss of UAH 317.539 million.
“Ukrgraphite is Ukraine’s leading manufacturer of graphitized electrodes for electric steel-making, ore-thermal and other types of electric furnaces, commodity carbon masses for Soderberg electrodes, carbon-based lining materials for metallurgical, machine-building, chemical and other industrial complexes.
According to the National Depository of Ukraine (NDU) as of the fourth quarter of 2022, Intergraphite Holdings Company Limited (Bermuda) owns 23,9841% of PrJSC, C6 Safe Group Limited (Cyprus) – 72,0394%.
The authorized capital of PrJSC – 233,959 million UAH, nominal value of 1 share – 3,35 UAH.
Kiev-headquartered investment firm Horizon Capital has raised $254 million in a new Horizon Capital Growth Fund IV (HCGF IV, the “Fund”), exceeding its $250 million target, the company said in a statement Friday evening.
“Today Horizon Capital and our esteemed group of investors made history as the first and largest fund raised since the start of a full-scale invasion,” the statement quoted company founder and CEO Olena Kosharnaya as saying from a private signing ceremony with Ukrainian President Volodymyr Zelensky and international investors from the United States, EU and international institutions.
In January this year, she told Interfax-Ukraine news agency that after raising $125 million in the first round of HCGF IV formation in September last year, it was planned to increase its size to $200 million by the end of March, and tentatively by mid-summer to completely close the formation of the fund in the originally planned amount of $250 million.
As noted in the message of the International Finance Corporation (IFC), which contributed $30 million to the fund at the initial stage of its formation, it has increased its contribution to $60 million, becoming the largest participant in the fund.
“We urge other investors to follow IFC’s lead and not let the newspaper headlines fool you. Financing sectors that others are hesitant to invest in can create tremendous investment opportunities with equally significant potential returns,” Kosharna said.
Among the new investors in HCGF IV, according to releases by Horizon Capital and the European Bank for Reconstruction and Development (EBRD), the Société de Promotion et de Participation pour la Coopération Économique (Proparco), the U.S. International Development Finance Corporation (DFC), Swedfund International AB (Swedfund), the Finnish Industrial Cooperation Fund (Finnfund) and the Danish Investment Fund for Developing Countries (IFU).
“In the context of the war with Ukraine, HCGF IV’s ambitions are unprecedented, and we are encouraged by its fundraising success,” Hassan El Khatib, managing director of equities, said in an EBRD release.
In addition to the EBRD, which contributed $40 million to HCGF IV in the first phase, its investors also included Deutsche Investitions-und Entwicklungsgesellschaft (DEG) and its subsidiary KfW Group, the Dutch Enterprise Development Bank (FMO), the Swiss Investment Fund for Emerging Markets (SIFEM) ), Western NIS Enterprise Fund and Zero Gap Fund, formed in collaboration between The Rockefeller Foundation and John D. and Catherine T MacArthur Foundation.
“The fact of exceeding the original ambitious goal of $250 million demonstrates a high level of investor interest in attractive opportunities in high-growth, high-impact technology and export-oriented companies, including those in the light and food processing, innovative consumer products, fintech, etc. sectors,” noted Horizon Capital.
It is also noted that HCGF IV was the first fund in Central and Eastern Europe (CEE) and one of about ten funds in the world to achieve 2X Flagship Fund status, including one of only two that are founded and led by women. The 2X Challenge was launched at the 2018 G7 Summit as a bold commitment by companies to invest in women in the world and promote gender equality in finance.
IFC specified that the fund would invest $10-30 million to acquire minority stakes in 10-15 mid-cap and $50-150 million companies in Ukraine and Moldova. HCGF IV is the $200 million successor to EEGF III, which was completed in 2017, and will follow a similar investment strategy focused on IT services and products as well as e-commerce, innovative consumer products and fintech, according to corporate materials.
IFC recalls having invested in EEGF III and EEGF II (2008), while EBRD was an investor in EEGF III and EEGF II as well as HCGF II.
Horizon Capital is a large investment company managing 6 private equity funds (more than 40 institutional investors) with assets of $1.4 billion, among which are WNISEF ($150 million), Emerging Europe Growth Fund (EEGF, $132 million), EEGF II ($370 million) and EEGF III ($200 million), as well as HCGF II ($258.3 million). The funds of these funds were invested in more than 160 companies, which employed more than 77 thousand people, in Ukraine and Moldova.
The Nikopol Ferroalloy Plant (NFP, Dnipropetrovsk Region) in January-March this year reduced its output 2.2 times as compared to the same period last year, to 69.09 thousand tons.
As reported to Interfax-Ukraine agency in the Ukrainian Association of Ferroalloys Producers (UkrFA), in the first quarter of this year, NFP reduced production of silico-manganese in 2.1 times – to 69.08 thousand tons, ferromanganese – to 0.01 thousand tons from 4.97 thousand tons, 84.3% – to 0.01 thousand tons. The company did not produce any other ferroalloys, while in January-March 2022 it produced 0.48 thousand tons.
The average monthly output of ferroalloys with the company stable operations is about 55-60 thnd mt.
NFP is Ukraine’s largest silico- and ferromanganese producer. It uses imported and domestic raw materials for producing ferroalloys.
The NFP is controlled by EastOne group, which was created in autumn 2007 as a result of Interpipe group restructuring, as well as Privat group (both from Dnipro).
In January-March this year, Zaporizhzhya Ferroalloy Plant (ZZF) reduced its output by 41.2 times compared to the same period last year, to 0.91 thousand tons from 37.53 thousand tons.
According to the Ukrainian Ferroalloy Producers Association (UkrFA), in the first three months of this year, ZZF reduced production of silicomanganese to 0.04 thousand tons from 13.89 thousand tons, ferrosilicon to 0.71 thousand tons from 12.56 to 19.72 thousand tons, and ferromanganese to 0.16 thousand tons from 9.70 thousand tons.
At the same time, the company did not produce metal manganese, while in 1Q2022 it produced 1.38 thousand tons.
ZZF is one of three Ukrainian producers of this product. The share of the domestic market in its supplies is 30-35%. The products are exported to the CIS, the European Union, Asia, and Africa.
Prior to nationalization, Privatbank organized the business of ZZF, NFP, Stakhanovsky (now on the NCT), Pokrovske (formerly Ordzhonikidze) and Marganetsky mining and processing plants.
General Electric Co. increased its January-March revenue 14% year over year and ended the quarter with earnings per share versus a loss a year earlier.
The company said in a news release that it posted adjusted earnings of 27 cents per share in the first quarter, compared with a loss of 9 cents per share in the same period a year earlier. Experts polled by FactSet had on average expected earnings of 14 cents per share.
GE’s quarterly revenue rose to $14.49 billion from $12.68 billion a year earlier. The consensus analyst forecast for that figure was $13.3 billion.
Free cash flow was positive at $102 million, while analysts had expected a negative $645 million.
Tuesday’s report was the first to exclude GE HealthCare. The unit became an independent company and went public Jan. 4.
Revenues in renewable energy were down 1%, to $2.84 billion, while revenues in energy were up 9%, to $3.82 billion. Both businesses are part of the GE Vernova unit.
Revenues at the aviation division (GE Aerospace) jumped 25%, to $7 billion.
The company’s total orders received last quarter rose 25% to $17.6 billion.
GE Vernova is expected to spin off into a stand-alone business in early 2024, with GE renaming itself GE Aerospace.
GE raised the lower end of its adjusted earnings per share forecast by 10 cents and now expects it to be in the $1.7-2 range. The free cash flow forecast has been improved to $3.5-4.2 billion from $3.4-4.2 billion. Revenue growth is still expected to be 7-9% (high single digits).
GE stock is up 1.2% in premarket trading Tuesday. The company’s capitalization has risen 24% in the past three months, to $108.4 billion.
The big carriage works in Ukraine – Dneprovagonmash JSC (DVM, Kamenskoe, Dnepropetrovsk region), controlled by the financial-industrial group “TAS” of businessman Sergey Tigipko, sold 623 cars in 2022, which is by 35%, or 162 more than in 2021.
According to the unconsolidated 2022 non-consolidated financial statements of the company, published by the National Securities and Stock Market Commission (NSCM), the production of cars increased by 21%, or 100 more cars – up to 577 cars.
DVM net profit for the last year increased by 77.3% up to UAH 1 bln 108.7 mln and net profit amounted to UAH 48.64 mln against a loss of UAH 111.3 mln.
According to the information in the report, on April 20 this year the shareholders’ meeting of DVM decided not to pay dividends for 2022.
Last year the plant received UAH 130.64 mln of gross profit against a loss of UAH 38.17 mln in 2021. The operating profit amounted to 51.12 mln hryvnia against a loss of 115.8 mln hryvnia.
According to the report, the entire net profit in 2022 was obtained from the sale of freight cars (the average selling price of a car is UAH 1.78 mln). UAH 31.9 mln (2.9% of sales) were exported.
According to the company, Metinvest SMZ (Kyiv), Interpipe Ukraine (Dnipro), Dneprospetsstal (Zaporizhia), Azovmash (Kyiv), Kramatorsk Steel Rolling Plant, and UPEC Trading (Kharkiv) were the main suppliers of raw materials and supplies for DVM in 2022.
It should be noted that over the year the prices of axles rose by 87.9%, sheets by 42%, bent section by 27.5%, bearings by half, and car clutches by 30.8%.
The plant estimates its share in the total volume of railcars production in Ukraine at 22%. Among its competitors, it singles out Kryukiv Railcar Plant, DMZ Karpaty, and Popasna Car Repair Plant.
At the same time DVM states that Russian aggression has radically changed the cargo base of rail logistics in Ukraine, as a result of which freight traffic has fallen by more than half, and the largest share of reductions has occurred in cargoes for the MMC, fuel-energy complex, and construction.
In addition, the drop in demand for railcars, according to DVM, is dictated, among other things, by the lack of traction rolling stock at Ukrzaliznytsia due to its depreciation, the presence of used Russian railcars with an expired service life and transit railcars, which remained in Ukraine after February 24, 2022, and the increased period of rotation of rolling stock.
The report notes that DVM is not planning a significant expansion of production and reconstruction this year, but intends to further diversify into manufacturing of steel structures for domestic and foreign consumers.
“Dneprovagonmash is one of Ukraine’s leading enterprises in design and production of freight cars. Its annual production capacity is 9 thnd cars.
According to the report, by early 2023, the company employed 876 people, while the wage fund decreased by 33.54 mln hryvnia to 118.42 mln hryvnia due to a reduction in the number of employees and the work in idle mode and part-time work.
As reported, according to consolidated statements of DVM (including indicators of subsidiary Steelzavod) net income in 2022 increased 1.9 times compared with 2021 to UAH 1 billion 107.5 million, net profit reached UAH 32.7 million compared with a loss of UAH 1323.5 million for the previous year.
In 2021 DVM decreased its freight car output by 39.2% to 477 cars, and its sales decreased by 44% to 461 cars. In total, 1.9 th. cars were produced in Ukraine.
TAS Group was founded in 1998 by businessman Sergei Tigipko. Its business interests include financial sector (banking and insurance) and pharmacy, industry, real estate, venture projects.
Tigipko told Forbes Ukraine in late 2022 that DVM produces 70 freight cars per month and is preparing to localize production in Austria.
