Kernel, one of the largest Ukrainian agricultural groups, could consider a possibility of selling shares in a deep-water grain terminal at the Taman port (Russia) if the price offered for them were acceptable, the agricultural holding has said on the Warsaw Stock Exchange (WSE).
Several potential buyers are interested, and if the holding receives the satisfactory price, it will seriously consider the issue of leaving the Russian market, Kernel President Andriy Verevsky said.
As reported, in 2012, Kernel and Glencore acquired a 100% stake in the deep-water grain terminal in the port of Taman from the EFKO group. The transaction value was $265 million. Kernel received a 50% stake in this terminal. In 2018, Kernel transferred its quota for transshipment of 1.8 million tonnes of grain to a third party and received $7.8 million for this.
Kernel is the world’s largest producer and exporter of sunflower oil, a leading manufacturer and supplier of agricultural products from the Black Sea region to the world markets.
Kernel, one of the largest Ukrainian agricultural groups, received $164 million of net profit in the first half of the 2019 fiscal year (FY, July 2018-June 2019), which is 83% more than in the same period last year.
According to the company’s financial report on the website, its revenue in July-December 2019 FY increased by 2.1 times, $2.255 billion.
The operating profit of Kernel rose by 2.4 times, to $193.4 million, EBITDA by 1.9 times, to $229.9 million.
According to the company, the group’s revenue from oilseeds processing grew by 9%, to $736.5 million, from infrastructure segment and sales in July-December 2019 FY by 4.2 times, to $1.741 billion, from crop production by 22%, to $342.5 million.
According to the report, the company plans in the 2019 FY to process 3.1 million tonnes of sunflower and export 6-6.2 million tonnes of grain.
One of the largest Ukrainian agricultural groups Kernel has acquired 100% of shares in Rail Transit Kargo Ukraine (RTK-Ukraine) for $64 million, the company has reported on the Warsaw Stock Exchange (WSE).
According to the report, RTK-Ukraine is the owner of 2,949 grain railcars accounting for nearly 15% of the market and making it the second largest grain hopper wagon fleet operator in the country after the state monopoly Ukrzaliznytsia.
“The acquisition shall not only contribute an estimated incremental EBITDA of up to $20 million annually and protect the company against ever rising logistic costs, but it shall also procure the smooth and efficient flow of grains from inland silos to the ports as company’s export volumes increase following the commissioning of TransGrainTerminal in the port of Chornomorsk,” the company said.
Adjusted for working capital and net debt, the company paid $49 million in cash at completion while the remaining balance shall be released upon the achievement of certain conditions.
Namsen Limited, a legal entity under control of Board Chairman of Kernel agricultural holding Andriy Verevsky, on November 29 acquired 56,744 shares in Kernel Holding S.A. (Luxembourg).
According to a company report on the website of the Warsaw Stock Exchange (WSE), average price of one share was PLN 52.72 ($13.94).
The company increased its stake in Kernel from 39.86% to 39.93%, and the total number of shares held by Namsen increased to 32.177 million.
As reported, on November 8 through November 13 Namsen acquired 178,186 shares in Kernel Holding S.A. at average price of PLN 51.36.
Kernel is the world’s largest producer and exporter of sunflower oil, the leading manufacturer and supplier of agricultural products from the Black Sea region to the world markets.
Two agricultural exporters Kernel Trade and ADM Trading Ukraine, as well as Mariupol Illich Steel Works affiliated with the Metinvest Group, are in the top three largest recipients of VAT refunds from the budget in November 2018, according to information on the website of the State Treasury Service of Ukraine. The largest recipient of the budget reimbursement of VAT in November was Kernel-Trade – UAH 1.35 billion (the company had no VAT refunds in October), followed by ADM Trading Ukraine with UAH 1.05 billion (UAH 707.9 million in October).
At the same time, the Mariupol Illich Steel Works dropped from first to third place in November, slightly decreasing its figure from UAH 761.7 million in October to UAH 759.5 million, according to the State Treasury Service.
The top five recipients also included one of the largest operators in the grain market Nibulon – UAH 741 million and ArcelorMittal Kryvyi Rih steel works – UAH 485.4 million (compensation information in October is not available for both companies).
The top ten largest VAT recipients in November also included Azovstal steel works affiliated with Metinvest – UAH 473.4 million (UAH 166 million in October), and AT Cargill – UAH 396.6 million (no refund data available in October).
ADM TRADING, KERNEL, METINVEST’S COMPANIES, RECIPIENTS, VAT REFUNDS
Kernel, one of the largest Ukrainian agricultural groups, in the fiscal year of 2018 (FY, July-June), reduced grain sales by 8.2% compared to the previous FY, to 4.646 million tonnes. According to the company’s website, sales of bulk sunflower oil in the 2018 FY increased by 20.1%, to 1.301 million tonnes, bottled sunflower oil decreased by 9.7%, to 118.6 million liters.
During this period, the holding processed 3.136 million tonnes of sunflower seeds, which is 6% more than in the 2017 FY.
In April-June of the 2018 FY sales of bulk oil increased by 37.3%, to 386,640 tonnes, bottled sunflower oil decreased by 16.3%, to 32.8 million liters compared to the same period last year.
Grain sales in the fourth quarter of the 2018 FY rose by 64.3% over the same period last FY, to 1.573 million tonnes.
Grain transshipment at the group’s export terminals in the 2018 FY decreased by 0.6%, to 6.06 million tonnes, in the fourth quarter it increased by 12.6%, to 1.61 million tonnes.
Kernel is the world’s largest producer and exporter of sunflower oil, the leading producer and supplier of agricultural products from the Black Sea region to the world markets.
