The KSG Agro agricultural holding completed January-March 2021 with a net profit of $750,000 versus $3.02 million of a net loss for the same period in 2020.
According to the holding’s report on the Warsaw Stock Exchange website, its revenue over this period increased by 9%, to $3.52 million, and the company’s EBITDA by 21%, to $1.39 million.
According to the results of the first quarter, KSG Agro increased its gross profit by 18% compared to the first quarter of 2020, to $1.26, operating profit by 39%, to $1.01 million.
“As of the date of these financial statements, the total balance of ‘other financial liabilities’ as of December 31, 2020 decreased by an additional $9.4 million, with the current portion of this amount being $3.4 million. Liabilities were partially settled in cash and partially due to disposal subsidiaries Agrarian Firm Vesna LLC, Trading House UAIH LLC and Soyuz-3 LLC,” the agricultural holding said in the financial statements.
According to the agricultural producer, the retirement of three subsidiaries from the agricultural holding led to an increase in its consolidated capital from a negative value of $6.2 million “closer to a positive value.”
According to KSG Agro Board Chairman Serhiy Kasyanov, the main factors behind the growth of financial indicators were a decrease in unproductive costs, as well as an increase in demand for pork in the first quarter of 2021 after a drop in prices at the end of 2020.
The total revenue of KSG Agro from pig breeding and meat processing in the first quarter of 2021 amounted to $2.51 million, almost at the level of the same reporting period of 2020 ($2.56 million).
KSG Agro’s revenue from agricultural crops production amounted to $ 840,000 (versus $100,000 in January-March 2020). The company said that as an alternative source of income, KSG Agro used its equipment and experience to provide services for the preparation and processing of land for other agricultural producers, which brought in $720,000 in revenue.
According to the financial statements, coronavirus (COVID-19) pandemic did not have a significant impact on the profitability of the agricultural holding, it is expected that the event in the future will not have a significant impact on its business operations in future periods.
The company’s spring sowing campaign started in early April as scheduled. The plans of the spring sowing campaign are to sow 7,100 hectares with wheat, some 1,860 hectares with rapeseed and some 1,180 hectares with barley. The pig stock of the company in the first quarter of 2021 decreased by 1.7%, to 40,720 pigs.
According to the Association of Ukrainian Pig Breeders, the agricultural holding in 2020 took 11th place in the rating of Ukrainian pork producers (the rating was compiled on the basis of data on the total breeding stock of pigs), having sold 11,760 tonnes of pork in live weight over the year.
The mobile network operator Kyivstar in January-March 2021 increased its total revenue by 15% compared to the same period in 2020, to UAH 6.842 billion, according to a financial report of the company’s shareholder, the international Veon group.
According to data published on the official website of Veon, in the first quarter, Kyivstar increased its EBITDA by 15.3% compared to the same period last year, to UAH 4.658 billion. EBITDA margin grew by 0.2 percentage points (pp), to 68.1%.
Total operating revenue from mobile services rose by 14.9%, to UAH 6.357 billion.
According to the operator’s own report, Kyivstar accelerated the construction of high-speed data transmission networks, which resulted in a 24.3% increase in the number of 4G subscribers.
In turn, the use of mobile Internet per subscriber grew by 27.5%.
“We expect Kyivstar to continue to deliver double-digit revenue growth in the remainder of 2021,” Veon said in the financial report.
Veon said that Kyivstar’s 4G coverage in Ukraine reached 87%, (an increase of 10 pp year-over-year), and the penetration of 4G mobile communications in the operator’s network reached 38% of the total base.
The average revenue per user (ARPU) of mobile communications increased to UAH 82, or by 16.1%, the minutes of use (MoU) – by 5.1%, to 633 minutes.
The number of Kyivstar mobile customers in January-March decreased 1.15%, to 25.7 million.
“Kyivstar’s total mobile customer base showed a year-over-year decline largely due to the decline of second SIM cards in the market and lower gross additions during lockdown when the strict measures in 2Q20 resulted in the partial closure of Kyivstar stores and lower customer mobility,” Veon said.
Total operating revenue from fixed-line communication grew by 17.2%, to 451 million, broadband ARPU rose by 5.4%, to UAH 85. The number of broadband customers increased 11.5%, to 1.15 million.
Capex excluding licenses and leases (operational capex) increased by 11.7% year-over-year.
Revenue in the B2B segment grew by 6% in the first quarter of 2021, reflecting Kyivstar’s promotion of new digital solutions for its business customers and rapid growth in Big Data.
Veon said that digital adoption and usage have accelerated in the last twelve months. In Q1 2021, the number of MyKyivstar self-care users was at 2.7 million, up 76% year-over-year, while the Kyivstar TV service users increased to 414,342.
Kyivstar paid UAH 2.3 billion of taxes and duties to the national budget.
Kyivstar is a market-leading telecoms operator in Ukraine. It provides communication and data services based on a wide range of mobile and fixed-line technologies, including 3G.
The shareholder of Kyivstar is the international group VEON (earlier – VimpelCom Ltd.). The group’s shares are listed on the NASDAQ stock exchange (New York).
Revenue of Metinvest B.V. (the Netherlands), the parent company of the Metinvest mining and metallurgical group, in November 2020 increased by 8.4%, or $73 million, compared to the previous month, to $941 million from $868 million.
According to the published preliminary unaudited consolidated monthly results of the company’s financial statements, the overall rate of EBITDA amounted to $263 million in November, which is $23 million more than in October ($240 million), while EBITDA from participation in the joint venture was $53 million (in October $56 million).
According to the financial statements, the adjusted EBITDA of the metallurgical division of the group for November 2020 amounted to “plus” $136 million (in October, “plus” $140 million), including $10 million from participation in the joint venture ($9 million); EBITDA of the mining division – $142 million (in October $128 million), including from the joint venture – $43 million ($47 million). The management company spent $8 million ($7 million).
Total revenue in November consisted of $759 million ($689 million in October) for the metallurgical division, $268 million ($228 million) for the mining division, and intragroup sales of $86 million ($49 million).
The total debt of the company in November increased by $8 million compared to October, to $2.940 billion from $2.932 billion, whiles the amount of cash increased by $101 million, to $813 million from $712 million.
Funds used in investment activities amounted to $81 million and in financial activities to $71 million.
Metinvest received $61 million from the resale of square billets (produced by PJSC Dniprovsky Metallurgical Plant of the Industrial Union of Donbas corporation) in November in the amount of 138,000 tonnes. In addition, $120 million was received from the resale of 225,000 tons of flat-rolled products, 67,000 tonnes of long rolled products for $34 million, and 113,000 tonnes of cast iron for $44 million.
In general, the company in November sold 517,000 tonnes of semi-finished products for $222 million, 801,000 tonnes of finished metal products for $454 million, and 165,000 tonnes of coke for $34 million.
In November, the group sold 1.589 million tonnes of iron ore for $172 million, and 49,000 tonnes of coal concentrate for $6 million.
PrJSC Centravis Production Ukraine, part of Centravis Ltd, doubled EBITDA in 2020 compared to the previous year, to EUR 14 million.
Chief Financial Officer Alexandre Joseph said at an online press conference of Centravis on Friday that the production of stainless pipes last year decreased by 9.3% compared to the previous year, to about 19,050 tonnes.
In 2021, it is planned to produce 17,500 tonnes of products.
CEO of the company Yuriy Atanasov said that a decrease in pipe production is planned as a result of a change in strategy, as well as a reduction in production capacity and personnel by 20-25% due to the fall of markets in 2020 due to the coronavirus (COVID-19) pandemic.
At the same time, he said that 2020 was a difficult year for the company due to lockdowns and falling demand. For Centravis, the fall in oil prices in early 2020 was significant, as this also affected suppliers of stainless pipes for the oil and gas industry. At the same time, during the spring lockdown in many countries, the company even increased its supply, but in the summer there was a decrease, in connection with which it had to cut production and staff. “We took an unprecedented step, we offered severance pay in the amount of from three to six salaries, depending on the length of service of employees, spending more than UAH 15 million on this, which is very significant for our company,” Atanasov said.
In a press release published by the company on Friday, it is stated that in 2020 Centravis has continued to develop sales in all regions of the world. The company supplies seamless pipes to the European Union, the Middle East, Latin America, Eastern Europe, the United States, India, Australia, Japan, Canada, and other regions and countries.
Among the key clients of Centravis in 2020 are Buhlmann Group, Damstahl GmbH, ThyssenKrupp, Salzgitter AG, and Karl Mertl Handelsges. The company has completed a number of large-scale orders for such global companies as Bousted International Heaters, Stainalloy Nederland, and Buhlmann Group.
“Last year has tested the strength of everyone without exception. I think we have coped with all the challenges. Our team has managed to adapt. We have improved our products and helped our customers to solve their problems. But most importantly, we have strengthened our stability and are ready to develop in 2021,”Atanasov said.
According to him, focus on product quality and high customer service has helped Centravis maintain a stable position among the world’s best manufacturers of seamless pipes.
Centravis Production Ukraine is the only specialized enterprise for the production of seamless stainless steel pipes in the CIS and the leading exporter in its segment.
Interpipe, the international vertically integrated pipe and wheel company, in January-September 2020 received $ 216.394 million in EBITDA, which is 8% more than in the same period last year.
According to a press release of the company, based on the unaudited IFRS consolidated financial statements for the nine months of 2020, in January-September revenue fell by 23%, to $ 660 million, capital investments by 34%, to $ 27 million.
The press release emphasizes that the company’s net debt has reached a de-minimis level of $ 12 million with a net leverage ratio (net debt to EBITDA) that has dropped to almost zero (0.05x).
In the third quarter of 2020, the company’s revenue decreased by 12% compared to the previous quarter, to $ 192 million, EBITDA increased by 7%, to $ 67 million, the amount of capital investments increased by 12%, to $ 9 million.
“In Q3 2020 Interpipe operated in a quite challenging environment across all markets. The COVID-19 pandemic as well as oil and gas prices downturn led to the global decline in demand for pipes, particularly, OCTG products. Moreover, lockdowns and reduction of freight turnover hit global railway wheel market,” the report says.
“In the first nine months of 2020, Interpipe’s overall revenue declined by 23% y-o-y to $ 660 million primarily due to a decline in pipe sales volumes and prices. Revenue from pipes shrank by 35% y-o-y to $ 349 million whereas the railway product revenue decreased by 6% y-o-y to $ 216 million,” according to the document.
“Nevertheless, Interpipe managed to achieve а sound nine-month 2020 EBITDA which amounted to $ 216 million, up by 8% y-o-y. On the back of the COVID-19 pandemic and reinstatement of the anti-dumping duty in the Customs Union the railway product segment was the main contributor to the EBITDA growth: its pass-through EBITDA went up by 24% y-o-y to $ 161 million and comprised 75% of the total EBITDA for the nine months of 2020,” it said.
“At the same time, the pipe segment EBITDA for the first nine months of 2020 drastically dropped by 79% y-o-y to $ 10 million despite stable sales of linepipes and some recovery of OCTG in Q3 2020,” it said.
“As of September 30, 2020, gross debt went down substantially to $ 122 million following the partial redemption of the notes in amount of $ 97 million in August 2020. In addition, net debt achieved an unprecedently low level of $ 12 million bringing down consolidated net leverage ratio (net debt to EBITDA) almost to zero (0.05x),” the report says.
“Despite extremely harsh business environment in Q3 and the first nine months of 2020 Interpipe kept showing a solid financial performance. The company retrieved its full financial stability and flexibility having achieved effectively a zero net leverage. Our progress and substantially improved credit profile have been also appreciated and confirmed by international credit rating agencies – Fitch Ratings and S&P Global – assigning to Interpipe ‘B’ rating with stable outlook,” CEO at Interpipe Fadi Hraibi commented on the results.
The Ukrainian business of the Danish pig-breeding company Goodvalley, which assets are also located in Poland and Russia (formerly Danosha), in January-September 2020 saw EBITDA of DKK 125 million, which is 81.2% better than this indicator in January-September 2019.
Adjusted EBITDA rose by 76.5% to DKK 120 million, while revenues grew by 10.6%, to DKK 343 million, according to the company’s report last week.
The company said that in the third quarter of this year compared to the third quarter of last year, it managed to increase EBITDA 2.4 times, to DKK 34 million, adjusted EBITDA – by 80%, to DKK 27 million, but its revenue decreased 6.5%, to DKK 129 million.
According to the report, sales of pigs in live weight in the third quarter were stable, having decreased by 1.8% compared to the third quarter of last year, to 10,700 tonnes. The average realized price per kilogram decreased by 14.4% over the year as a result of the fall in the exchange rate, to DKK 11.37 from DKK 13.28.
Goodvalley clarified that 77% of the revenue of the Ukrainian segment came from sales of live pigs, and 23% from sales of grain crops and energy.
The share of the Ukrainian segment in the total revenue of the group was 34%, the Polish – 55%, the Russian – 11%, while the adjusted EBITDA was higher – 44% compared to 27% from the Polish business and 29% from the Russian one.
According to the report, in January-September of 2020, sales of pigs in live weight in the Ukrainian segment grew by 11.2% to 31,700 tonnes.
In general, Goodvalley’s revenue in the first nine months of this year increased 0.8%, to DKK 1130 million, EBITDA 6.7%, to DKK 224 million, and adjusted EBITDA increased 39.5%, to DKK 258 million.
In the third quarter of this year, the company’s revenue decreased 8.5%, to DKK 379 million, EBITDA 47.6%, to DKK 33 million, and adjusted EBITDA 18.3%, to DKK 58 million.
Goodvalley ended the first nine months of this year with a net loss of DKK 11 million versus DKK 120 million in net income in the first nine of last year, but adjusted profit rose 3.7 times, to DKK 95 million.
In the third quarter, the net loss amounted to DKK 50 million versus the net profit of DKK 26 million in the third quarter of last year, and the adjusted net profit fell by 83.3%, to DKK 3 million.
Goodvalley is engaged in pig farming in Ukraine, Poland and Russia. The group is also engaged in crop production, production of compound feed, biogas and electricity. It includes 34 farms and nine biogas plants. Goodvalley has a land bank of 38,300 hectares.
Goodvalley in 2019 increased its net profit to DKK 188 million from DKK 22 million in 2018. The company’s revenue rose 3.6% last year, to DKK 1.53 billion.
