Business news from Ukraine

Stalkanat-Silur reduced its loss by 92.4%

PrJSC “Production Association “Stalkanat-Silur” (Odesa) ended 2023 with a net loss of UAH 720 thousand, while in 2022 it amounted to UAH 9.494 million.

According to the information for the annual general meeting of shareholders scheduled for April 18 this year, which will be held remotely, the company’s retained earnings at the end of last year amounted to UAH 102.193 million.

The shareholders will summarize the results of the year 2023, including reports from the CEO, the Supervisory Board and the auditor, and decide on covering losses from future periods’ profits. The company’s charter and bylaws will also be amended, and the election of members of the supervisory board will be held.

As reported earlier, the general meeting of shareholders held on September 3, 2021, decided to spin off Stalkanat-Silur and establish a new company, Stalkanat, with the transfer of some property, rights and obligations to it in accordance with the approved distribution balance sheet.

Stalkanat-Silur CEO Sergey Lavrinenko previously explained to Interfax-Ukraine that all shares in the newly created PrJSC Stalkanat are to be distributed among all shareholders of PrJSC Stalkanat-Silur. The shareholders agreed to spin off Stalkanat, which will take over the Odesa industrial site. In turn, Stalkanat-Silur will also be retained, with Silur located in the temporarily uncontrolled territory (Khartsyzsk, Donetsk Oblast) on its balance sheet.

PJSC PA “Stalkanat-Silur” (Odesa) previously had two branches – in Odesa and in Khartsyzsk, Donetsk region, on the oil and gas pipeline. On December 1, 2016, the company’s management officially announced the closure of the company’s branch in Khartsyzsk – the relevant announcement was published in the newspaper Uriadovyi Kurier. Later, the management of PJSC “PA “Stalkanat-Silur” announced the seizure of the company’s branch in Khartsyzsk on the tubing and sent a statement to the National Police.

According to the third quarter of 2023, David Nemyrovsky (Ukraine) owns 50.0001% of the shares of PJSC PAO Stalkanat-Silur, Anton Mikhalenko (Israel) owns 23.7%, and Maria Kondratyuk (Ukraine) owns 23.1%.

The authorized capital of PJSC Stalkanat-Silur currently amounts to UAH 8.346 million.

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Elworthy, major Ukrainian manufacturer of agricultural machinery, ended 2023 with loss of UAH 85 mln

According to preliminary data, a large Ukrainian manufacturer of sowing and tillage machinery Elworthy JSC (formerly Chervona Zirka, Kropivnitsky) has completed 2023 with a loss of UAH 85.85 mln, which is 81.6% more than the same indicator of 2022.

The corresponding information is contained in the agenda of the general meeting of shareholders of the company, scheduled for April 25, published in the disclosure system of the National Commission on Securities and Stock Market (NCSSM).

According to the draft decision of the meeting, the losses are planned to be repaid at the expense of retained earnings of previous years.

According to the Clarity-project resource, the company’s retained earnings amounted to UAH 611.039 million by the beginning of this year.

The meeting also intends, in particular, to re-elect the Supervisory Board.

JSC “Elworthy”, which is part of the group of enterprises “Elworthy Group” of businessman Pavel Shtutman, specializes in the production of seeding and tillage equipment: seeders for sowing grain and row crops, cultivators for continuous and inter-row tillage, disc harrows for resource-saving tillage.

As reported, in January-September 2023, the company has received UAH 59.17 million loss against net profit of UAH 29.3 million for the same period of 2022, with net income falling by 35% to UAH 422.93 million.

According to Clarity-project, net income for the whole of 2023 fell by 34.3% to UAH 490.7m.

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“Metinvest” ended last year with loss of $194 mln, revenue down 11%

In 2023, the consolidated net loss of Metinvest B.V. (Netherlands), the parent company of Metinvest Mining and Metallurgical Group, amounted to $194 million, while in 2022 it reached $2.193 billion (down 11 times).

According to the group’s annual report, its revenue fell by 11% from $8.288 billion to $7.397 billion in 2022, and EBITDA fell by 54% to $861 from $1.873 billion.

It is specified that the revenue of the metallurgical sector decreased by 15.2% to $4.846 billion, and the mining segment – by 0.8% to $2.551 billion.

At the same time, adjusted EBITDA of the group’s steel division decreased by 40.4% to $159 million and mining segment by 50.2% to $770 million.

Metinvest’s operating profit in 2023 amounted to $445 million against an operating loss of $1.426 billion in 2022.

In addition, free cash and cash equivalents increased to $646 million from $349 million at the end of 2022.

As reported, Metinvest B.V.’s consolidated net loss in 2022 amounted to $2.193 billion compared to a profit of $4.765 billion in 2021. At the same time, revenues fell by almost 2.2 times to $8.288 billion from $18.005 billion in 2021, and EBITDA fell by 3.4 times to $1.769 billion.

Revenue of the steel sector decreased by 2.5 times to $5.803 billion, the mining segment – by 1.8 times to $3.473 billion, adjusted EBITDA of the steel division fell by 11.1 times to $0.262 billion, and the mining segment – by 2.5 times to $1.448 billion. Metinvest’s operating loss in 2022 amounted to $1.426 billion, compared to a profit of $4.933 billion in 2021.

Taking into account asset write-downs of $1.283 billion and foreign exchange losses of $1.154 billion, the group’s total loss for 2022 amounted to $4.1 billion, compared to a total profit of $5.023 billion in 2021. Free cash flows decreased by 3.3 times to $0.349 billion.

“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.

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Zaporizhzhia Ferroalloy Plant suffered loss of UAH 677.9 mln

Zaporizhzhia Ferroalloy Plant (ZZF) ended January-September 2023 with a net loss of UAH 677.9 million, while in the same period of 2022 it made a net profit of UAH 1 billion 1.283 million.

According to the interim financial results report for January-September 2023, which is available to Interfax-Ukraine, the company reduced its net income by 68.7% to UAH 1 billion 347.930 million over the period.

Retained earnings as of the end of September 2023 amounted to UAH 3 billion 879.020 million.

As reported, in 2022, ZZF made a profit of UAH 523 million 27.621 thousand, in 2021 – a net profit of UAH 2 billion 402 million 251.119 thousand, in 2020 – a net profit of UAH 682.297 million, while it ended 2019 with a net loss of UAH 600.607 million.

As reported, Pokrovsky Mining and Processing Plant (PGOK, formerly Ordzhonikidze Mining and Processing Plant) and Marganetsky Mining and Processing Plant (MGOK, both in Dnipropetrovska oblast), both part of the group, stopped mining and processing crude manganese ore in late October and early November 2023, while NFP and ZFP stopped smelting ferroalloys.

Prior to nationalization, the business of ZZF, NFP, Stakhanovsky ZF (which is on the tubing line), Pokrovske (formerly Ordzhonikidze) and Marganetsky mining and processing plants was organized by Privatbank.

Zaporizhzhia Ferroalloy Plant is one of the two main Ukrainian producers of these products.

According to the third quarter of 2023, Matrimax Limited and Soltex Limited own 22.4486% of the company’s shares, Tapesta Limited – 18.8903%, Walltron Limited (all Cyprus) – 18.642%, and Halefield Holdings Limited (Belize) – 7.7508%.

The authorized capital of ZZF is UAH 227.955 million, with a par value of UAH 0.1 per share.

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“Zaporizhstal” reduced net loss by 92% in January-September

In January-September of this year, PJSC “Zaporizhstal Iron and Steel Works” reduced its net loss by 91.8% compared to the same period last year – to UAH 236.623 million from UAH 2 billion 883.850 million.

According to the company’s interim report in the NSSMC’s information disclosure system, its net income for the period increased by 9.2% to UAH 41 billion 329.014 million.

Retained earnings as of the end of September 2023 amounted to UAH 28 billion 961.786 million.

As reported, Zaporizhstal ended 2022 with a net loss of UAH 4 billion 864 million 684.828 thousand, while in 2021 it made a net profit of UAH 16 billion 809 million 158.412 thousand.

“Zaporizhstal is one of the largest industrial enterprises in Ukraine, whose products are widely known and in demand in the domestic market and in many countries around the world.

According to the NDU for the third quarter of 2023, Kyiv Securities Group LLC owns 24.5003% of Zaporizhstal shares, Midland Capital Management LLC (both Kyiv, registered at the same address) owns 11.2224%, Global Steel Investments Limited (UK) owns 12.3466%, and Metinvest B.V. (Netherlands) owns 47.0032%.

Earlier it was reported that Metinvest Group’s effective shareholding in Zaporizhstal remains at 49.9%.

“Zaporizhstal is in the process of integration into Metinvest Group, whose major shareholders are System Capital Management (71.24%) and Smart Holding Group (23.76%).

Metinvest Holding LLC is the management company of Metinvest Group.

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In 2022, Marganetsky GOK increased its loss by 1.9 times

In 2022, PrJSC Marhanets Mining and Processing Plant (MGOK, Dnipro region) increased its net loss by 1.9 times year-on-year to UAH 47.062 million.

According to the company’s annual report in the information disclosure system of the National Securities and Stock Market Commission (NSSMC), net income for the period decreased by 63.8% to UAH 1 billion 434.670 million.

Retained earnings by the end of 2022 amounted to UAH 563.731 million.

In 2022, MMPP produced 271,825 thousand tons of manganese ore, 51,284 thousand tons of concentrate, 219,937 thousand tons of sludge, and sold 237,539 thousand tons of ore, 59,539 thousand tons of concentrate, and 219,937 thousand tons of sludge.

As reported, in the first half of 2022, MMPP increased its net loss by 4.3 times compared to the same period last year – up to UAH 42.164 million, net income decreased by 23.6% to UAH 1 billion 138.683 million.

In January-March 2022, MMPP increased its net loss by 16.6 times compared to the same period in 2021 to UAH 159.870 million, while net income increased by 2.4 times to UAH 865.275 million.

MMPP ended 2021 with a net loss of UAH 24.541 million, while in 2020 it made a net profit of UAH 239.284 million.

MMPP is developing the eastern part of the Nikopol manganese ore deposit (Hrushevsko-Basansky area). The plant comprises four operating mines, including one under construction, one open pit mine – Hrushevsky – and a processing plant.

According to the third quarter of 2023, the largest shareholders of the company are Couttenmax Holdings Limited, Mosfilia Investments Limited and Humax Enterprises Limited, which own 23.8933% of the company’s shares each, as well as Fianex Holdings Limited (all of Cyprus), which owns 24% of the company’s shares.

The authorized capital of MMPP is UAH 366.625 million, with a share price of UAH 0.25.

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