In 2023, Metinvest B.V. (Netherlands), the parent company of Metinvest Mining and Metallurgical Group, increased capital investments in Metinvest Pokrovskugol, which manages the enterprises of Pokrovskoye Coal Group (PGU), by 15.6% year-on-year to $126 million from $109 million.
According to a corporate presentation published on the Irish Stock Exchange on June 4, Metinvest increased its capex investments in Kametstal by 5% in 2023, to $42 million from $40 million.
Capex at Central GOK increased by 6.7% to $16 million from $15 million.
At the same time, the Group reduced investments in Northern GOK by 29.5% to $31 million from $44 million, in United Coal (USA) by 47.5% to $21 million from $40 million, in Ingulets GOK by 58.1% to $13 million from $31 million, and in other assets by 53.3% to $35 million from $75 million.
In general, Metinvest reduced its capital investments in 2023 by 19.8% compared to 2022, to $284 million from $354 million, while $65 million was invested in the steel segment last year ($99 million in 2022) and $213 million in the mining sector ($244 million).
At the same time, it is noted that the share of the mining segment in 2023 increased to 75% of total investment (+6% compared to 2022), the share of investments in capital repairs increased to 86% of total expenditures (an increase of 6% compared to 2022), while strategic investments amounted to 14% of the total.
The priorities of capital expenditures affected by the war were affected by the implementation schedules of strategic projects in accordance with the actual production configuration and the identified optimization measures. At the same time, the development of the strategy for key projects is ongoing. Maintenance projects continue to be implemented to ensure an adequate level of output capacity and provide technology to increase production at the Ukrainian assets after the end of the war.
In addition, the group has taken a number of measures to minimize potential damage in case of emergency power outages.
As reported, Metinvest’s consolidated net loss in 2023 amounted to $194 million, while in 2022 it reached $2.193 billion (down 11 times). Revenue fell by 11% from $8.288 billion to $7.397 billion in 2022, while EBITDA fell by 54% to $861 from $1.873 billion. At the same time, the steel sector’s revenue decreased by 15.2% to $4.846 billion, and the mining segment’s revenue decreased by 0.8% to $2.551 billion. Adjusted EBITDA of the Group’s steel division decreased by 40.4% to $159 million, and of the mining segment by 50.2% to $770 million.
“Metinvest is a vertically integrated group of steel and mining companies. Its enterprises are located in Ukraine – in Donetsk, Luhansk, Zaporizhzhia and Dnipro regions, as well as in Europe.
The main shareholders of the holding are SCM Group (71.24%) and Smart Holding (23.76%), which jointly manage it.
Metinvest Holding LLC is the management company of Metinvest Group.
CENTRAL GOK, INVESTMENTS, METINVEST, Каметсталь, Покровскуголь
Following the attacks on the energy infrastructure in March and April, Vodafone has decided to double its planned investments in energy independence this year. Following this decision, the company plans to purchase additional generating capacity and autonomous power supply systems worth UAH 438 million. Total investments in the network’s energy resilience in 2022-2024 will exceed UAH 674 million.
Vodafone is investing in new types of batteries for its communication facilities. To improve reliability and extend the autonomous power supply time of its base stations, the company has already purchased 13.5 thousand batteries of a new lithium-ferrous type (LiFePO4). Such batteries are much better adapted to harsh operating conditions with frequent and prolonged power outages. Vodafone plans to purchase an additional 4,612 such batteries in 2024.
In addition, Vodafone will increase its generating capacity. More than 1.5 thousand base stations are already powered by generator sets, including the company’s own stationary and mobile generators, as well as generator sets of partners and customers. During the war alone, the company purchased about 500 mobile generators and the auxiliary equipment necessary for their operation. In 2024, the number of generating equipment of various types will increase by another 280 units.
Today, more than 700 partner generators ensure the network’s operation during outages, and this number is constantly growing. Vodafone is open for further cooperation – companies that have a diesel generator set and are ready to share its capacity to provide communication for their company and other subscribers within the base station coverage area can send a letter to no_blackout@vodafone.ua. Vodafone experts will be happy to discuss the details of possible cooperation.
During previous emergency outages, the company has already used more than 1,094 tons of diesel and gasoline. Vodafone’s power engineers have also ensured sufficient diesel and gasoline reserves to generate electricity to keep the grid running during the blackouts. To minimize the risks of a shortage of certain types of fuel and diversify fuel supplies, including on a regional basis, the company has increased the number of wholesale fuel suppliers with whom it has signed contracts and made significant fuel reserves.
CRH Group, the largest building materials manufacturer in North America and Europe, has invested $80 million in Ukraine over the course of the full-scale invasion. Guillaume Cavalier, President of CRH in Central and Eastern Europe, told Forbes Ukraine that the group’s total investments in Ukraine over 25 years of work amount to more than $500 million. According to him, in the context of rebuilding infrastructure in Ukraine, it is important to use cement produced locally, which will provide jobs and higher revenues to the state budget.
Cavalier emphasized that for the potential growth of the Ukrainian cement market after accession to the EU, it is important to invest in the expansion of production facilities now. He reminded that the Antimonopoly Committee of Ukraine (AMCU) is currently considering CRH’s application to acquire assets of Italian Buzzi in Ukraine – cement plants Volyn-cement (Zdolbunov, Rivne region) and YuGcement (Olshanskoe, Mykolayiv region).
As reported, on January 23, AMCU reported about the beginning of consideration of the case on concerted actions in the form of fulfillment of provisions on refraining from competition, enshrined in the concentration agreement between the Irish group CRH and Dyckerhoff GmbH, which own assets in Ukraine.
In June 2023, Italian cement producer Buzzi, listed by the National Agency for the Prevention of Corruption as an international sponsor of war, through its subsidiary Dyckerhoff GmbH, reached an agreement to sell part of its business in Eastern Europe to Irish group CRH, including Ukrainian assets in the form of two cement plants. The transaction is expected to close in 2024.
Later, in September 2023, the AMCU returned CRH’s application for concentration without consideration due to non-compliance with the requirements, and also noted that the group occupies about one-third of the Ukrainian cement market. In October of the same year, the agency reopened the case.
CRH has been operating in Ukraine since 1999. Since November 2021, its cement enterprises in Ukraine have been operating under the Cemark brand: Podolsk Cement JSC (Khmelnytskyi oblast), Cement LLC (Odessa) and Mykolaivcement PJSC (Lviv oblast).
A separate business area of CRH in Ukraine is production concrete and reinforced concrete products. PoliBeton Energo’s Bila Tserkva Reinforced Concrete Plant is a specialized enterprise that produces supports for power transmission lines. PoliBeton’s concrete unit in the north of Odessa joined CRH in 2020.
CRH is a leading manufacturer of construction materials in the world. The company employs about 71,000 people at its 3,200 plants in 28 countries. It is the largest producer of building materials in North America and Europe. The company is also present in Asia. American depositary shares of CRH are listed on the New York Stock Exchange.
The National Bank of Ukraine says it is implementing the largest package of easing currency restrictions for businesses since the start of the full-scale war to improve the conditions for doing business in Ukraine and the entry of domestic businesses into new markets, as well as supporting economic recovery and facilitating the inflow of new investment into the country.
“First, all currency restrictions on imports of works and services are abolished. Second, the ability of businesses to repatriate ‘new’ dividends is ensured. Third, the possibility to transfer funds abroad on leasing/renting is provided,” the NBU said in a press release on Friday evening.
“Fourth, restrictions in terms of repayment of new external loans are relaxed. Fifth, the possibility to repay interest on ‘old’ external loans is provided. Sixth, restrictions in terms of transferring foreign currency from representative offices in favor of their parent companies are relaxed,” the regulator added.
It is specified that these and a number of other technical changes were introduced by the NBU Board Resolution No. 56 of May 3, 2024 to the so-called “military” Resolution No. 18 of February 24, 2022. The vast majority of the document’s provisions come into force from May 4, 2024, and only in terms of repatriation of new dividends – from May 13, 2024.
The regulator believes that this will support Ukrainian producers and provide them with the opportunity to enter foreign markets, which in turn will contribute to a gradual increase in export revenues.
It is indicated that repatriation of dividends by businesses will be allowed only for dividends accrued based on performance after January 1, 2024.
“This relaxation does not apply to the payment of dividends at the expense of retained earnings for previous periods or reserve capital,” emphasized the National Bank.
In addition, the regulator set a monthly limit for repatriation of “new” dividends at EUR1 million equivalent in order to minimize risks to macro-financial stability. It is noted that control over compliance with this norm will be ensured thanks to the NBU’s automated information system “E-limits”.
“Providing an opportunity to repatriate “new” dividends will contribute to the inflow of new investments in Ukraine, minimize the risks of curtailing the activities of enterprises with foreign capital and support the economy,” the National Bank believes.
As for the easing of restrictions on servicing and repayment of “new” foreign loans and repayment of “old”, the NBU has reduced the minimum period of use of the loan, the funds for which come from abroad after June 20, 2023 on the accounts of residents, from three to one year, when reaching which it is allowed to buy foreign currency for its repayment. Thus, the ban on the purchase of foreign currency for repayment of “new” loans will apply to loans for up to one year.
In addition, the NBU will allow businesses, regardless of the period of use of “new” loans to buy foreign currency to pay interest on them.
“All this will contribute to increasing opportunities for Ukrainian businesses to attract new external loans not only from official partners, but also from private investors,” the release said.
Moreover, according to it, resident borrowers will be able to make transfers in foreign currency to repay interest on “old” external loans, which, according to the terms of the agreement, are payable from February 24, 2022. However, under one loan agreement for interest payments overdue as of May 1, 2024, borrowers will be able to transfer no more than 1EUR million equivalent per calendar quarter.
Also, according to the release, legal entities and individual entrepreneurs will be able to transfer funds abroad for settlements under leasing or rental contracts without additional restrictions on the subject of such a contract, as well as the date of its conclusion.
The National Bank reminded that previously such permission was only for leasing or renting vehicles.
Regarding the permission for representative offices of foreign companies to transfer foreign currency to the accounts of parent companies, it is specified that the central bank will allow international card payment systems and foreign airlines to buy and transfer foreign currency abroad to the account of a non-resident legal entity, but for such operations will be set a monthly limit of EUR5 million in equivalent.
According to the regulator, this will contribute to further development of cashless settlements in Ukraine.
ACTIVITIES, BUSINESS, CURRENCY, ECONOMY, INVESTMENTS, NATIONAL BANK OF UKRAINE, UKRAINE
In 2023, Vodafone Ukraine showcased resilience and positive momentum across all key operational and financial indicators. Despite the impact of the ongoing war, the company not only preserved but also increased its investments in the development and support of Ukraine’s telecommunications infrastructure. Compared to the previous year, Vodafone’s investments surged by an impressive 58%, reflecting a commitment to enhancing business efficiency.
Financial and Operational Highlights
Revenue Growth: Vodafone’s revenue grew by 9% to reach UAH 21.6 billion in 2023. Key drivers included a focus on expanding fixed-line services, increased data usage, and growth in both mobile and fixed-line service revenues.
OIBDA Increase: The company achieved a 13% increase in OIBDA, which reached UAH 12.7 billion. The OIBDA margin also improved to 58.7%, representing a 1.8 percentage point increase.
Net Profit Surge: Vodafone’s net profit soared to UAH billion, a remarkable fivefold growth compared to 2022. Factors contributing to this substantial increase included currency stabilization (due to NBU’s managed exchange rate regime), reduced losses and impairment related to assets located on non-controlled territories, partner discounts, and overall business efficiency gains.
Investment Milestone: The generated profit allowed Vodafone to reinvest in network coverage and maintain network stability. Notably, the company achieved record-breaking investment levels, surpassing even pre-war figures from 2021.
Vodafone’s commitment to Ukraine’s telecommunications infrastructure underscores its resilience and determination to thrive despite challenging circumstances.
Investments
In 2023, Vodafone’s investment in Ukraine’s infrastructure amounted to UAH 5.7 billion. Throughout the two years of full-scale war, Vodafone invested a total of UAH 9.3 billion in the country.
Despite continuous network damage and the need for equipment restoration, the operator continued to expand. During the active phase of the war, Vodafone successfully brought 5,500 base stations online, enhancing coverage and network capacity. Over these two years, data traffic increased by 1.5 times. On average, a Vodafone data customer uses approximately 9 GB of mobile internet per month. This surge in usage contributed to an increase in the ARPU, reaching UAH 107.2 per month in 2023.
Expanding the network by 40% allowed Vodafone customers across Ukraine to consume more content while maintaining high-quality mobile internet. In the third and fourth quarters of 2023, Vodafone emerged as the leader in mobile internet speed in Ukraine, as confirmed by user tests using Ookla’s Speedtest®.
Subscriber Base
Systematic investments in network development and restoration, coupled with attractive tariff initiatives, positively impacted the subscriber base. In 2023, Vodafone managed to increase its customer count. As of the end of the year, 15.9 million people in Ukraine use Vodafone services, representing a 3.2% growth compared to 2022.
Additionally, more than 2 million Vodafone customers remain abroad and continue to use Vodafone services with Ukrainian tariffs. Since the onset of the full-scale invasion, Vodafone has supported Ukrainians seeking refuge in European countries. Most tariffs include free access to the “Affordable Roaming” service in 30 countries. This service provides 10 GB of mobile internet and 100 minutes for calls to Ukrainian and destination-country subscribers, subject to payment of the Ukrainian service package.
Fixed Internet
Vodafone Ukraine has made significant strides in its fixed business segment. In 2023, Vodafone continued its development of fixed business by increasing investments in the expansion of new fibre optic lines based on Vega, a company within the Vodafone Ukraine group. Additionally, Vodafone acquired a new asset, purchasing 90.6% shares of LLC “Freenet”.
During the past year, the company actively expanded its coverage in the cities of its presence and started the construction of the GPON network in Mykolaiv and Ivano-Frankivsk. In 2023, a network was built in 3,125 apartment buildings with the possibility of access to high-speed Internet for 411,426 households.
In total, access to the Vodafone Gigabit Net service is already available in more than 6,000 homes in Ukraine.
Vodafone tripled its fixed internet user base using GPON technology, which has proven to be the most reliable and energy-independent access technology for home and office internet. Thanks to the development of its own network and the acquisition of a new provider, Vodafone has now entered the top 5 fixed internet providers in terms of user count.
Vodafone Retail
Retail revenue increased by 16%, reaching UAH 773 million in 2023, contributing to 3.6% of the entire Vodafone Ukraine group’s revenue. Vodafone Retail improved the efficiency of its retail points, nearly doubling the number of available brands in Vodafone stores. The company received industry recognition, winning the “Retailer of the Year in the Portable Electronics Segment” award from the Association of Retailers of Ukraine (RAU), as chosen by Ukrainian consumers. Throughout the year, Vodafone opened 5 new stores, bringing the total number of retail outlets to 430: 92 company-owned stores and 338 dealer stores.
Vodafone’s Commitment to Ukraine
Vodafone Ukraine has made substantial investments in supporting the country and its citizens. Since the onset of the full-scale invasion, Vodafone has been dedicated to ensuring millions of citizens remain connected with their loved ones and have access to information during these challenging times, regardless of their mobile account status.
Vodafone has launched a series of social and charitable initiatives, including humanitarian and Financial Assistance:
• Providing direct financial aid and humanitarian support.
• Procuring emergency vehicles and medical equipment.
• Initiating the “League of Warmth” charity challenge, aimed at insulating maternity hospitals.
• Supporting children who have lost parents due to the war.
In total, Vodafone’s social investments during 2022-2023 amounted to UAH 1.7 billion
For more information, please contact:
Vodafone
Press service
press@vodafone.ua
About Vodafone
Vodafone is one of the world’s largest telecommunications companies, providing a wide range of services including mobile voice, data transfer, messaging, fixed broadband and cable television. The Company operates across 17 countries and partners with mobile networks in 43 countries. As of 31 March 2024, Vodafone provides services to over 340m mobile customers and 28m fixed broadband customers, 20m TV customers and connects more than 162m IoT devices. For more information, please visit www.vodafone.com.
Vodafone Ukraine is a leading telecommunications company that provides high-speed 3G and 4G Internet services and fixed broadband services. The Vodafone’s investments during the active construction of high-speed Internet networks in 2015 –2023 exceeded 42 billion UAH. The record investments have ensured the technological leadership and the development of new technological services – Internet of Things (IoT), technologies and solutions for Smart City, big data analytics, fintech services, cloud services. Vodafone has 15.9 m customers in Ukraine. Since December 2019, Vodafone Ukraine is part of NEQSOL Holding.
About NEQSOL Holding
NEQSOL Holding is a diversified group of companies operating across the energy, telecommunications, hi-tech, and construction industries.
The group of companies operates in the Netherlands, the UK, the USA, Turkey, Azerbaijan, Ukraine, Georgia, Kazakhstan and the UAE.
Along with its plans for further business development in Ukraine, the Holding opened its representation office in Ukraine at the end of 2020.
German MC-Bauchemie intends to invest EUR 1.5 mln in the expansion of dry construction mixtures production in Berezan (Kiev region), MC-Bauchemie Ukraine director Artem Priymachenko told Interfax-Ukraine agency.
“We intend to build a new line for special construction materials, such as a variety of polymer-cement mixes for structural repair of concrete, toppings for industrial floors, waterproofing materials, highly functional adhesives for tiles. The approximate volume of investments is EUR 1.5 mln,” he said.
According to Priymachenko, the investments will be made at the expense of MC-Bauchemie’s own funds. The discussion of war risk insurance is underway now.
“We are now in the procedure of obtaining a guarantee from international organizations for military risks. We are considering options – the German government or MIGA from the World Bank,” he said.
According to the company’s plans, the new line in Berezan could be launched at the end of 2025.
Founded in 1961, MC-Bauchemie Group is one of the leading international producers of construction chemicals and technologies. With more than 2,500 employees, it is represented in more than 50 countries.
According to the data of opendatabot, LLC “MC-Bauchemie” (33482370) was founded in 2005, authorized capital 333,8 thousand UAH. Revenue in 2023 356 million 836 thousand UAH, which is 2.6 times higher than the results of 2022 and 9% higher than pre-war 2021. Net profit for 2023 UAH 55 million 618 thousand, in 2022 there was a net loss of UAH 18 million 625 thousand.
construction mixtures, INVESTMENTS, KYIV REGION, MC-Bauchemie
