Agroholding “Kernel”, taking into account the continuation of Russia’s war against Ukraine, in the spring of 2023 initiated an extension of waivers (waivers) for another year – until June 30, 2024, the company said in a statement on the Warsaw Stock Exchange.
“At the moment, the process of agreeing such an extension with the majority of creditors is still ongoing. However, the Group has signed either 1) temporary moratoriums (standstills); 2) extensions; or 3) new waivers and consents (consents) under all credit facilities, pending final agreement with those lenders with whom extensions have not yet been finalized,” Kernel pointed out.
Agroholding noted that interest will continue to accrue and be paid in accordance with the terms of the loan agreements. “The company is also currently paying and intends to continue paying interest on the Eurobonds,” the release said.
“Kernel” recalled that earlier such waivers (Waiver Letters) in order to maintain stability and preserve business and assets for a period until June 3- June 2023 were signed in respect of, inter alia, loans of Natixis PXF, ING PXF, EBRD and EIB. Under these, the agroholding has obtained a deferral of any principal repayment, a waiver of specified potential or actual defaults or events of default arising from the war in Ukraine, but has been paying interest.
It is stated that the group has already agreed with those creditors that have not yet signed new waivers and consents, the principal terms of the extension of the terms until June 30, 2024, which are subject to final documentation and approval by the respective credit committees of each creditor. Their principal conditions, in addition to extending the maturity date to June 30, 2024, are the establishment of a capital expenditure basket sufficient to support the current scale of operations and the commencement of a shareholder support process in the form of a new capital injection of at least $60 million.
As of July 31, Kernel had $1 billion 445 million of interest-bearing debt (principal amount of bank loans and Eurobonds, excluding accrued interest and lease obligations), $1 billion 148 million of cash and cash equivalents and $327 million of inventory (including 1 million 282,000 tons of grain, 103,000 tons of oilseeds, 147,000 tons of sunflower oil and 111,000 tons of sunflower meal).
A substantial portion of the accumulated liquidity will be spent in fiscal year 2024 (FY, effective July 1, 2023 – IF-U) on working capital, capital expenditures for the development of an alternative export route across the Danube, repair of facilities, damaged as a result of Russian missile strikes, to complete construction and commissioning of an oil extraction plant in western Ukraine, and to address the maintenance backlog as a result of liquidity preservation measures taken in FY2022-FY2023, it said.
According to it, the group is considering investments in rolling stock, grain transshipment on the Danube River and river fleet to ensure a monthly export volume of about 300,000 tons with an estimated capital expenditure of about $50 million. The group does not have access to credit limits at banks, relying on accumulated cash, however, it continues to negotiate with various financial institutions for credit lines for working capital or capital expenditure. The uncertainty of future VAT refunds and the possible risk of hryvnia devaluation increase the risk of significant currency losses, Kernel adds.
Regarding the delisting, the intentions of which were first announced in early March this year, the company points out that on May 15 it filed an application with the Polish Financial Supervisory Authority (PFSA), and on July 13 it submitted to the PFSA an additional legal memorandum and other documents requested by the regulator. Kernel then sent a letter to the PFSA on Aug. 1 objecting to the applications filed with the regulator in the case.
“At the time of publishing this report, the company has not received any further information on the timing of the PFSA’s decision,” it said.
Kernel Agroholding was the world’s number one producer of sunflower oil (about 7% of global production) and its exporter (about 12%) before the war. It is one of the largest producers and sellers of bottled oil in Ukraine. In addition, it is engaged in growing agricultural products and their realization.
The largest co-owner of Kernel through Namsen Ltd. – is Ukrainian businessman Andriy Verevsky, who this year increased his stake from 41.3% to 74.05% as part of the buyout and delisting of the agroholding from the Warsaw Stock Exchange.
Kernel’s net profit for the first nine months of FY 2023 (July-2022-March 2023) rose 36% to $437 mln, while revenue fell 45% to $2.715 bln.
Agroholding “Kernel”, one of the largest in Ukraine, with a record yield completes harvesting of early grain crops, under which 70 thousand hectares are allocated, the press service of the agroholding reported.
“This year’s winter wheat yield, depending on the region of the cluster location, was from 5.8 to 7.3 tons/ha. The weighted average yield is almost 70% higher than last year’s figure,” the agroholding said on Facebook.
According to “Kernel”, on the post-harvest areas are implemented programs of biologization of farming. To support biodiversity and improve soil fertility, cover crops have already been sown on 22 thousand hectares.
It is noted that agronomic divisions of the agroholding continue to test and research the effectiveness of using different mixtures of cover crops to assess their impact on physical and chemical characteristics, microbiological activity of soil and phytosanitary condition of fields.
Before the war, Kernel Agro Holding ranked first in the world in sunflower oil production (about 7% of world production) and exports (about 12%). It is one of the largest producers and sellers of bottled oil in Ukraine. In addition, it is engaged in growing agricultural products and their realization.
The largest co-owner of Kernel through Namsen Ltd. – is Ukrainian businessman Andriy Verevsky, who this year increased his stake from 41.3% to 74.05% as part of the buyout and delisting of the agroholding from the Warsaw Stock Exchange.
Kernel’s net profit for the first nine months of FY 2023 (July-2022-March 2023) rose 36% to $437 mln, while revenue fell 45% to $2.715 bln.
The liquidation commission has sold the property of Ilyichevsk Oil and Fats Plant LLC (Chernomorsk, Odessa Region) for UAH 696.66 million to Poltava-Zerno LLC, 95% of which belongs to the Kernel agricultural holding.
According to information in Prozorro.Sale, the auction was held on July 26 with a starting price of UAH 689.6 million, and Poltava-Zerno was the only participant.
It is specified that the buyer has already paid UAH 55.04 million of the guarantee fee, part of which in the amount of UAH 13.93 million went to the remuneration of the operator of the electronic platform – LLC “Onylan-Market”.
The new owner received, in particular, a land plot of 8.58 hectares with communications, where the plant is located, a complex of buildings and structures, as well as transport, tanks, reservoirs, production lines, minibus and other property.
Ilyichevsk Oil and Fats Plant LLC is bankrupt. According to open data opendatabot.ua, as of 2020 its assets were estimated at UAH 205.324 million, profit – UAH 481.721 million, income – UAH 22.836 million. At the same time, debt obligations reached UAH 2.587 billion.
Agroholding “Kernel” before the war ranked first in the world in the production of sunflower oil (about 7% of world production) and its export (about 12%). The company is one of the largest producers and sellers of bottled oil in Ukraine. In addition, the agroholding is engaged in the cultivation of agricultural products and their realization.
The largest co-owner of Kernel through Namsen Ltd. – is Ukrainian businessman Andriy Verevsky, who this year, as part of the buyout and delisting of the company from the Warsaw Stock Exchange, increased his stake from 41.3% to 74.05%.
Kernel’s net profit for the first nine months of 2023FY (January-March 2023) rose 36% to $437 mln, while revenue fell 45% to $2.715 bln.
As reported, Kernel recently reported that 40% of its grain storage and transshipment capacity at the Chernomorsk port was damaged as a result of a missile attack by Russia on the night of July 19, and it will take at least 12 months to restore these assets. In addition to the damage to infrastructure during this attack, a fire at the Chernomorsk port partially destroyed and damaged 60,000 tons of grain prepared for loading onto the large-capacity vessel Alexis and which was to be shipped to China.
Kernel Agroholding, one of the largest in Ukraine, processed 650.4 thousand tons of sunflower seeds in the fourth quarter of fiscal year 2023 (April-June), a 4-fold increase compared to the same period last FY.
According to the company’s report, processing was down 13% quarter-on-quarter, reflecting the usual sunflower seed shortage near the end of the season, which forced three of the group’s six operating plants to temporarily stop processing oilseeds in May-June.
“Two processing plants owned by the Group remain inaccessible in the high-risk area of the Kharkiv region with regular shelling by Russian occupiers,” the report states.
Overall, in 2023 FG processing grew by 15% to 2.51 million tons.
According to the report, vegetable oil sales in April-June 2023 increased by 14% quarter-on-quarter to 312,700 tons, including 21,000 tons of bottled sunflower oil, and the growth was fivefold compared to the fourth quarter of last year.
“The group continues to prioritize vegetable oil and meal exports over grain exports, given the more attractive margins in the oilseed processing value chain compared to grain export operations,” it said.
For the entire 2023 FY, sales reached 1 million 132.7 thousand tons, exceeding the previous FY by 17%.
It is pointed out that Kernel’s silo loadings in the fourth quarter of FY 2023 were seasonally insignificant at 98,000 tons, 50% higher than the fourth quarter of last year. As a result, total intake during FY 2023 was 2.83 million tons, down 32% from FY 2022.
According to the report, the transshipment volume of export terminals in Ukraine in April-June 2023 decreased by 13% quarter-on-quarter to 933.1 thousand tons, while there was no transshipment in the same period last year.
Overall for FY 2023, Kernel terminals transshipped 4 million 437.7 thousand tons of goods, 39% less than a year earlier, which the company attributed to failures in the grain deal.
“Russia terminated the grain deal on July 18, 2023. Thus, the Group’s future ability to export goods through Ukrainian Black Sea ports is unclear,” the report states.
“Kernel” recalled that on July 19, its assets in the port of “Chernomorsk” were subjected to a massive missile attack from Russia. As a result, grain transshipment facilities and grain stored in the port were significantly damaged. According to initial estimates, it will take considerable time to return the assets to operation.
According to the report, the group’s grain exports from Ukraine in the fourth quarter of FY 2023 amounted to 755,000 tons, down 8% from the previous quarter but 6 times higher than in the fourth quarter of FY 2022.
On a year-on-year basis, Kernel’s grain export volumes more than halved year-on-year to 3 million 833.2 thousand tons, the document specifies.
“Kernel” before the war ranked first in the world in the production of sunflower oil (about 7% of world production) and its export (about 12%), and was the largest producer and seller of bottled sunflower oil in Ukraine. In addition, the company was engaged in the cultivation of other agro-products and their sales.
Kernel’s net profit for the first nine months of 2023FY increased by 36% to $437 mln, while revenues fell by 45% to $2.715 bln.
Kernel Agroholding’s assets in the port of Chernomorsk were subjected to a massive missile attack from Russia on Wednesday and suffered significant damage, the company said in a statement on the Warsaw Stock Exchange.
“The company’s grain handling facilities as well as grain stored at the Chernomorsk port were significantly damaged. Initial assessments indicate that it will take considerable time to return the assets to working condition,” Kernel said.
Reports of the damage led to a collapse of the share price on the exchange from PLN13.53 to PLN12.34 and high volatility: at one point they managed to recover the fall, but by 15:00 local time they were quoted at around PLN12.7-12.9, about 5% below the opening price.
As reported, the company’s CEO Yevhen Osipov in early July at a meeting of the grain club of the Ukrainian Grain Association reported on the need for further development of alternative corridors for export of Ukrainian agricultural products already built on the Danube and assured that Ukraine can fulfill forward deliveries through them.
Before the war, Kernel Agroholding ranked first in the world in the production of sunflower oil (about 7% of world production) and its export (about 12%). The company is one of the largest producers and sellers of bottled oil in Ukraine. In addition, the agroholding is engaged in the cultivation of agricultural products and their realization.
The largest co-owner of Kernel through Namsen Ltd. – is Ukrainian businessman Andriy Verevsky with a 41.3% stake, who recently proposed delisting the company from the Warsaw Stock Exchange and buying back shares from other shareholders.
Kernel’s net profit for the first nine months of 2023FY (Jan-March 2023) rose 36% to $437 mln, while revenue fell 45% to $2.715 bln.
Ukrainian agro-industrial group Kernel signed an agreement to expand cooperation with Polish fuel importer Unimot Group, the company reported on Facebook.
“With the start of a full-scale war, we, along with other market participants, were forced to reorient fuel supply chains. In the midst of this process, Kernel signed its first formula contract with Polish fuel importer Unimot Group,” the agricultural holding company’s press office noted.
According to the agreement signed during Petroleum Ukraine 2023 conference, the Polish company will supply fuel, lubricants, bitumen and gas to the holding. For its part, Kernel will develop the storage and transport infrastructure and use mutually beneficial financial mechanisms.
The companies also agreed to cooperate in solar energy and projects aimed at decarbonizing production.
Unimot Group is the leader among Polish importers: 1.8 mln cubic meters of annual sales, 9 fuel terminals with a total capacity of 350 thousand cubic meters. The company owns a network of AVIA petrol stations with more than 3,200 stations in Europe.
Before the war, Kernel ranked first in the world in sunflower oil production (about 7% of world output) and its export (about 12%). The company is one of the largest producers and sellers of bottled oil in Ukraine. Besides, Kernel is engaged in cultivation of agricultural products and their realization.
Kernel cut its net profit in 1HFY2023 (July-December 2022) by 12.6% YoY to $370.31 mln, while revenues decreased by 41.3% to $1 bln 889.78 mln.
