Metinvest B.V. (the Netherlands), the parent company of the Metinvest mining and metallurgical group, in January-March this year reduced capital investments by 1% compared to the same period last year, to $ 147 million from $ 148 million.
The unaudited consolidated financial results for the first quarter of 2021 show that strategic investment declined 37% year-on-year as a result of the ongoing revision of the technology strategy and the completion of some key projects in 2020, while maintenance project investment increased by 32%, which brought its share in total capital investments to 30% and 70%, respectively (47% and 53% in the first quarter of 2020).
At the same time, Metinvest continued to implement the following key strategic projects: the construction of a cyclical flow technology at Pivnichny and Inhulets GOKs (completion of work at both GOKs is expected by the end of 2021), the construction of an air separation unit at Illich Steel Plant (detailed engineering documentation has been completed). Metinvest has also launched a project for thickening waste enrichment at Pivnichny GOK to reduce waste transportation costs and the cost of servicing pumping equipment at slurry pumping stations. The group continued the construction of new block No. 11 at the mine of the recently consolidated Pokrovske mine directorate to maintain production volumes.
“Despite the completion of the main work within the largest environmental project in the history of Ukraine – the reconstruction of the sinter plant at Illich Steel Mill, environmental issues remain a priority for the group,” the report emphasizes.
Thus, other environmental projects in the first quarter of 2021 included the reconstruction of the gas cleaning facilities of the foundry and the bunker rack of blast furnaces No. 4 and No. 5 at Illich Steel Mill, the reconstruction of the gas cleaning system of oxygen converters at Azovstal and the replacement of the gas cleaning equipment of the Lurgi 552-A roasting furnace at Pivnichny GOK.
Metinvest is a vertically integrated group of mining and metallurgical enterprises. The group’s enterprises are located mainly in Donetsk, Luhansk, Zaporizhia and Dnipropetrovsk regions.
The main shareholders of the holding are the SCM Group (71.24%) and Smart-Holding (23.76%), which jointly manage it.
Metinvest Holding LLC is the management company of Metinvest Group.
JSC Ukrzaliznytsia in 2021 plans to allocate almost three times more funds for renovation, overhaul, modernization of rolling stock and construction of infrastructure compared to 2020.
According to the press service of the company, the capital investment of the enterprise in 2021 should amount to UAH 27.2 billion (UAH 9.7 billion in 2020). At the same time, 55% of this amount is Ukrzaliznytsia’s own funds, 31% are investors’ funds, 14% is planned to be received from the state budget.
Ukrzaliznytsia counts on state support in implementing these plans. Since investments in the renewal of infrastructure must be comprehensive and systemic, so that in the future they return to the state budget in the form of profit, it added.
As reported, Ukrzaliznytsia intends to increase capital investments to UAH 41 billion in 2023.
In 2019, Ukrzaliznytsia increased its net profit by 14.7 times, to UAH 2.988 billion (UAH 203.85 million in 2018). EBITDA increased by 6% compared to the previous year, to UAH 17.3 billion.
Capital investments in Ukraine in 2019 increased by 15.5%, while in 2018 their growth was 16.4%, and a year earlier some 22.1%, the State Statistics Service has said.
At the same time, according to the State Statistics Service, from the middle of last year the growth of capital investments began to accelerate: 17.8% in the first quarter, 7.5% in the second quarter, 12.7% in the third quarter, and 21.2% in the fourth quarter.
In 2018, the trend was reversed as growth slowed during the year: 37.4% in the first quarter, 18.4% in the second quarter, 9.9% in the third quarter and a slight acceleration in the fourth quarter to 10.5%.
The service said that over the past year, UAH 584.4 billion of capital investments were used (excluding the temporarily occupied territory of Crimea, Sevastopol and the Joint Forces Operation area).
In the regional context, the largest increase in capital investments in 2019 was recorded in Volyn (by 74.2%), Kherson (by 66.1%), Mykolaiv (by 40.1%), Poltava (by 39.7%), and Kyiv regions (33.4%).
According to statistics, capital investments last year decreased in Khmelnytsky (by 5.8%), Rivne (by 5.4%), Odesa (by 1.7%), and Chernihiv (by 1.6%) regions.
Capital investments in Ukraine for 2018 increased by 16.4%, while for 2017 by 22.1%, the State Statistics Service has said. The agency said that during the past year, growth has slowed: if in the first quarter they reached 37.4%, then after the first half of the year they dropped to 26.5%, and in the first three quarters – to 19.9%.
In 2017, the growth pace were different: capital investments grew at a steady pace: 21.4% after the first three months, 22.5% – by the middle of the year, 20.7% – by the end of nine months with an acceleration of up to 22.1% in general for the year.
The own funds of enterprises and organizations remained the main source of financing of capital investments, and thanks to which 71.3% of the total volume was used (69.9% a year earlier). The share of banking and other loan financing last year increased from 5.3% to 6.7%, the national budget – from 3.5% to 4%, while local budgets decreased from 9.2% to 8.7%.
The agency said that the share of foreign investors fell from 1.4% to 0.3%, and the population’s funds for housing construction – from 7.8% to 6.4%.
According to the State Statistics Service, some UAH 526.3 billion of capital investments were used in 2018. The largest increase in capital investments in 2018 compared with 2017 was recorded in Donetsk (by 54.6%), Vinnytsia (by 37.8%), Cherkasy (by 32.4%), Dnipropetrovsk (by 29.4%), Chernihiv (by 17.7%), Zakarpattia (by 17.3%), Volyn (by 12.1%), Kyiv (by 9.8%), Kharkiv (by 9.3%), Rivne (by 8.7%), Sumy (by 8.5%) regions and Kyiv city (by 30.6%).
According to statistics, capital investments for the reporting period decreased in Ivano-Frankivsk (by 15.3%), Mykolaiv (by 12.6%), and Zaporizhia (by 12%) regions.
In terms of industry, the largest increase in capital investment this year was recorded in retail trade, except for trade in motor vehicles and motorcycles (more than 2 times), in the field of art, sports and entertainment (by 85.8%), wholesale and retail trade, repair of motor vehicles and motorcycles (by 49.1%), computer programming (by 49%), in the field of information and telecommunications (by 41.9%), air transport (by 35.9%), publishing, film and video production, television programs, sound recording, radio and television broadcasting activities (by 34%), wholesale trade, except trade in motor vehicles and motorcycles (by 32.8%), financial and insurance activities (by 30.4%), provision with food and beverages (by 29.8%), advertising and market research (by 27.8%), land and pipeline transport (by 24.3%), industry (by 22.2%), at the enterprises of transport, warehousing, postal and courier activities (by 21.9%), in forestry and logging (by 15.5%), in state administration, defense and compulsory social insurance (by 15.3%), in real estate operations (by 14.4%), in agriculture, forestry, fishing and education (by 8.4%).
At the same time, in the area of administrative and support services, the drop in investment was 22.2%, in the provision of other types of services – 21.4%, in the field of water transport and construction – 15.5% and 13.9%, respectively.
A significant share of capital investments was used in machinery, equipment and vehicles – 45.2%, and in buildings and structures – 44.2% of all investments.
