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.
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.
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.
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.
Kernel, one of Ukraine’s largest agricultural holdings, posted a net loss of $30.9 million in the first quarter of fiscal year 2024 (FY, July 2023-June 2024), while the company ended the previous year with a net loss of $162 million.
“The net loss … amounted to $31 million, which was the second quarter in a row in which the company reported a negative net result (the net loss of the fourth quarter of FY2023 was $138 million – IF-U),” the company said in a report on the Warsaw Stock Exchange.
Kernel’s consolidated revenues in the first quarter of 2024FY decreased by 17% compared to the first quarter and by 26% compared to the fourth quarter of 2023FY, amounting to $564 million.
“The main factors that contributed to this decline were a decrease in grain exports and the impact of lower prices for all commodities,” the document explains.
It is indicated that the change in the fair value of biological assets resulted in a $10 million loss in the first quarter of 2024 compared to a $2 million loss in the first quarter of 2023, lower prices led to a $23 million write-down of inventories, and net losses from impairment of financial assets amounted to $20 million, mainly reflecting provisions recognized for receivables.
In addition, it is specified that shipping and handling costs accounted for 22% of cost of sales in the first quarter of FY2024, and as a result of all of the above, gross profit in the first quarter of FY2024 fell by 70% year-on-year to $52 million, but this is better than the loss of $22 million in the fourth quarter of FY2023.
According to the report, general and administrative expenses in the first quarter of FY2024 fell by 29% year-on-year to $31 million, mainly due to lower wages and salary-related expenses.
Kernel’s EBITDA in July-September 2023 fell almost ninefold compared to July-September 2022, from $168 million to $19 million.
“The Oilseeds Processing segment remained the driver of the group’s profitability, contributing $58 million to Kernel’s profit. EBITDA increased by 15% compared to the fourth quarter of FY2023. These results reflect strong sales during the reporting period and a consistently high EBITDA margin of $158 per tonne of vegetable oil sold,” the report says.
“Kernel explained that it benefited from established export routes outside of Ukraine’s Black Sea ports, which allowed it to maintain high export volumes despite the blockade of the Black Sea. In addition, the weak profitability of sunflower processing, which prevailed in the summer of 2023, improved significantly in September with the arrival of a new sunflower crop on the market.
It is indicated that in the conditions of inaccessibility of the Black Sea for the group’s exports, the EBITDA of the Infrastructure and Trade segment amounted to only $6 million: Avere’s profitable trading operations slightly covered the loss of infrastructure and logistics assets in Ukraine.
The Agriculture segment generated a $23 million EBITDA loss in the first quarter of fiscal 2024.
According to the report, net cash used in investing activities amounted to $68 million in July-September 2023. It is specified that within the framework of investment activities, the group used $47 million to purchase property, plant and equipment (including the acquisition of a vegetable oil transshipment terminal in the port of Chernomorsk for $19 million), made an advance payment of $25 million for the acquisition of a vegetable oil transshipment terminal in the port of Reni, received $91 million from the sale of subsidiaries (mainly due to the final payment of remuneration for the removal of the director of Kernel), received $91 million.
Prior to the war, Kernel was the world’s largest producer of sunflower oil (about 7% of global production) and a major exporter (about 12%). It is one of the largest producers and sellers of bottled oil in Ukraine. In addition, it is engaged in the cultivation and sale of agricultural products.
Kernel’s net profit for FY2023 amounted to $299 million, while the company ended the previous year with a net loss of $41 million. The agricultural holding’s revenue for FY2023 decreased by 35% to $3.455 billion, but EBITDA increased 2.5 times to $544 million.
IMC Agricultural Holding posted a net loss of $2.25 million in the first nine months of this year, compared to a net profit of $4.67 million in the same period last year, according to the company’s report on the Warsaw Stock Exchange on Thursday.
According to the report, the holding’s revenue grew by 59.8% to $98.78 million, with exports increasing by 24.4% to $70.23 million.
At the same time, the revaluation of biological assets and agricultural products in January-September this year brought in 44.5% less than in January-September last year – $23.51 million.
In addition, a significant increase in the cost of production – by 55.6% to $92.4 million – led to a decrease in gross profit by 33.3% to $29.89 million.
Although IMC managed to more than halve administrative expenses (to $7.12 million), a more than twofold increase in logistics and distribution costs (to $16.50 million), given the decline in gross profit, led to a drop in operating profit by almost 15.3 times to $1.41 million compared to the same period last year.
At the same time, the situation was partially offset by positive exchange rate differences of $0.79 million in January-September this year, compared to exchange rate losses of $11.07 million in the same period last year.
Normalized EBITDA for the first 9 months amounted to $13.85 million, which is 2.7 times less than in the first 9 months of last year. The report notes that the reason for the decline was the decline in harvest prices this year.
It is specified that the main revenue of IMC in the reporting period was generated by the sale of 472.98 thousand tons of corn – $82.42 million and 56.12 thousand tons of wheat – $10.78 million, but their price fell compared to the previous year, respectively, from $208 per ton to $174 per ton and from $268 per ton to $192 per ton.
Net cash flow from operating activities for 9M2023 amounted to $10.06 million, while for 9M2022 it was negative – $9.37 million.
The volume of investments increased by 79% to $5.80 million, and taking into account less than $2 million of outflows on financial transactions, net cash flow was positive – $2.30 million against a negative result of $11.63 million for 9M2023.
IM’s current liabilities at the end of September amounted to $55.81 million ($55.51 million a year earlier), non-current liabilities – $13294 million ($126.70 million).
The company’s free cash flows at the beginning of October amounted to $27.16 million compared to $24.86 million at the beginning of this year and $13.28 million a year ago.
IMC is an integrated group of companies operating in Sumy, Poltava and Chernihiv regions (north and center of Ukraine). It controls 120.3 thousand hectares (120.0 thousand hectares under cultivation). As of September 30, 2023, the group operated in two segments: crop production and elevators and warehouses.
The agroholding’s net loss in 2022 amounted to $1.1 million against a net profit of $78.7 million a year earlier, with a 37.3% decrease in revenue to $114 million. EBITDA decreased threefold to $36.2 million.
In the first half of 2023, IMC earned $6.28 million in net profit, down 44.6% year-on-year, while its revenue increased by 61.6% to $71.95 million, with exports up 41.2% to $58.9 million. Normalized EBITDA for the first half of the year amounted to $17.06 million, down 41% year-on-year, due to higher sales costs and lower harvest prices.
