In January-September 2023, Ukrposhta JSC reduced its net loss by 15% compared to the same period last year – to UAH 594.8 million, according to the company’s report in the information disclosure system of the National Securities and Stock Market Commission (NSSMC).
According to the report, the state-owned company’s net income increased by 12% to UAH 8.36 billion.
The company’s operating expenses increased by 11.4% to UAH 9.3 billion. In particular, material costs increased by 27.9% to UAH 1.1 billion, and labor costs by 11.9% to UAH 4.5 billion. Social contributions increased by 3.8% to UAH 986.6 million. Depreciation and amortization increased by 23.9% to UAH 510.9 million. Other operating expenses increased by 4.6% to UAH 2.2 billion.
Long-term loans from banks increased by 4.3% to UAH 863.11 million in the first nine months of the year. Short-term loans remained unchanged at UAH 3.38 million.
The report also notes that as of September 30, the company violated financial covenants under a loan agreement with the European Bank for Reconstruction and Development (EBRD). It is specified that in September, Ukrposhta received confirmation from the EBRD of the bank’s intention not to charge long-term repayment on the loan and the risk to the company is minimal.
“The EBRD management has confirmed its intention to further cooperate with Ukrposhta in the implementation of projects. Accordingly, the EBRD loan liability was classified as non-current as of September 30, 2023,” the report says.
According to the report, Ukrposhta continues to operate in the context of the military conflict with Russia. As of the reporting date, parts of Donetsk, Luhansk, Kherson, and Zaporizhzhia regions remain occupied, with about 12% of post offices located there. As of September 30, the company has 27.36 thousand points of presence, employing 35 thousand employees (in the first half of the year there were 25.5 thousand points of presence and 45 thousand employees).
The company also reported that it has UAH 3.3 million of C series bonds at par with a maturity date of November 18 this year.
Earlier it was reported that in the first half of the year Ukrposhta increased its net loss by 27.0% compared to the same period last year to UAH 653.7 million. Its net income increased by 20.0% to UAH 5 billion 580.13 million.
In January-June 2023, Ukrposhta JSC increased its net loss by 27.0% compared to the same period last year, to UAH 653.7 million.
According to the state-owned company’s report in the NSSMC information disclosure system, its net income increased by 20.0% to UAH 5 billion 580.13 million.
It is noted that in the first half of this year, the Pension Fund remained the only client whose revenues exceeded 10% of Ukrposhta’s total income. The amount of remuneration from it for the delivery of pensions and other social benefits amounted to UAH 1.421 billion against UAH 1.423 billion for the same period last year.
It is specified that revenues from the provision of national postal services increased by 33.2% to UAH 3 billion 2.92 million. In particular, from the delivery of parcels and small packages – by 46.5% to UAH 1 billion 581.85 million, from the distribution of written correspondence – by 3.1% to UAH 667.46 million, from international postal exchange – almost 2.1 times to UAH 456.57 million, while from prepaid registration and delivery of periodicals decreased by 45.1% to UAH 103.7 million.
Financial and related services brought Ukrposhta UAH 2 billion 89.83 million in January-June 2023, only 0.3% more than in January-June 2022, largely due to the stability of the Pension Fund’s remuneration.
At the same time, revenues from postal transfers increased by 75.9% to UAH 130.9 million, while payment acceptance brought in 7.1% less, to UAH 497.37 million.
Finally, sales of own and commission goods increased by 54.6% to UAH 486.62 million.
“Ukrposhta noted that the share of foreign revenues in its revenue increased to 8.2% in the first half of this year from 4.7% in the first half of last year and totaled UAH 456.57 million. In particular, revenues from counterparties in Latvia jumped almost 4.4 times to UAH 228.17 million, in Estonia – 62 times to UAH 56.63 million, in Poland – 2.3 times to UAH 28.4 million, in Germany – 33.8% to UAH 15.48 million.
In the first half of 2023, the company managed to achieve a gross profit of UAH 31.15 million, compared to a gross loss of UAH 32.3 million in the first half of 2022.
However, due to an increase in administrative and sales expenses, the operating loss even slightly increased compared to the same reporting period last year – by 9.8% to UAH 747.04 million.
It is reported that as of June 30, 2023, Ukrposhta’s current liabilities exceeded its current assets by UAH 2.81 billion, while as of December 31, 2022, they exceeded its current assets by UAH 1.97 billion.
The company noted that it continues to operate amid the military conflict with Russia. As of the reporting date, parts of Donetsk, Luhansk, Kherson, and Zaporizhzhia regions remain occupied, with about 12% of post offices located there. Currently, there are almost 25.5 thousand points of presence (45 thousand employees), the report says.
It is noted that Ukrposhta continues to implement major strategic investment projects. In particular, the transition to mobile offices in rural areas has been completed – the project was implemented with the support of the European Bank for Reconstruction and Development. The next step is to automate mobile branches by the end of 2023, which will allow Ukrposhta to fully automate its network.
The company also announced the implementation of the ERP system module, and the transition to a new centralized structure without separate branches is scheduled to be completed in the third quarter of 2023. In addition, other critical back-end and transactional IT systems are being gradually updated to improve the quality of service delivery.
“After a certain pause due to the Russian aggression, Ukrposhta has resumed the project to modernize the logistics network (renting modern logistics centers and installing new sorting equipment). 3 parcel sorting lines have already been launched and full automation of the main sorting hubs covering the entire country is planned for the first quarter of 2024,” the report says.
It is also noted that in 2021, the company entered into a preliminary agreement for the purchase/sale of a controlling stake in one of the private commercial banks to be able to provide banking services in the branch network. “The transaction will take place only if the National Bank of Ukraine authorizes it and other terms of the agreement are fulfilled. As of the date of approval of the financial statements, the company’s management has not received the relevant permits,” Ukrposhta said.
As for the bonds, the company reported that it has UAH 3.3 million of C series bonds at par with maturity on November 18 this year.
PJSC Interpipe Novomoskovsk Pipe Plant (Interpipe NMPP, Dnipropetrovsk region) has reduced its net loss by 8.8 times in January-March of this year compared to the same period last year – to UAH 13.248 mln.
According to the interim report of the company, the company reduced net income by 37.3% to UAH 251.985 mln during this period.
Retained earnings by the end of March 2023 amounted to UAH 200.795 million.
As reported, “Interpipe NMTZ” ended 2022 with a net loss of UAH 382.038 million, while in the previous year received a net profit of UAH 175.722 million.
“Interpipe is a Ukrainian industrial company, a manufacturer of seamless pipes and railroad wheels. The company’s products are supplied to more than 80 countries through a network of sales offices located in the key markets of the CIS, Middle East, North America and Europe.
The company has five industrial assets: “Interpipe Nizhnedneprovsky Pipe Rolling Plant (NTZ)”, “Interpipe Novomoskovsk Pipe Plant (NMTZ)”, “Interpipe Niko Tube”, “Dnepropetrovsk Vtormet” and Dneprostal electric steelmaking complex under the brand name “Interpipe Steel”.
The ultimate owner of Interpipe Limited is Ukrainian businessman Victor Pinchuk and his family members.
“Interpipe NMTZ” specializes in the production of welded pipes for the oil and gas industry, machine building, construction and other industries.
According to NDU data for the fourth quarter of 2022, Interpipe Limited (Cyprus) owns 90.3897% of the plant’s shares, while Lindsell Enterprises Limited (Cyprus) has 6.2918%.
The authorized capital of PJSC Interpipe NFTZ is UAH 50 mln, the nominal value of a share is UAH 0.25.
The temporarily occupied enterprise with foreign investment in the form of Zaporizhzhia Iron Ore Plant (ZZHRK) ended 2022 with a net loss of UAH 371.605 million, while in 2021 it made a net profit of UAH 5 billion 193.310 million.
According to the draft decision of the extraordinary general meeting of shareholders scheduled for September 28, 2023, it is proposed to cover the losses for 2022 at the expense of future periods’ profits.
At the meeting, the shareholders also intend to approve the reports for 2022 and appoint the audit firm KPMG Audit to provide services for the statutory audit of the financial statements of the CJSC “ZZHRK” for 2022.
As reported, an extraordinary shareholders’ meeting held on July 15, 2022, left undistributed net profit for 2021 in the amount of UAH 5 billion 193.310 million. One shareholder was registered to participate in the meeting with a total number of ordinary voting shares of 57430967, or 51.169770% of the voting shares.
The administration of ZZHRK had previously announced that it had lost control over the company’s operations in the temporarily uncontrolled territory of Ukraine. At the same time, it was explained that with the outbreak of active hostilities on the territory of Ukraine, the administration of ZZHRK, in order to comply with industrial safety, implemented a number of measures to temporarily suspend the production process on February 26, 2022, from the day the Russian troops occupied part of the territory of Zaporizhzhia region. And since June 15, 2022, the economic activity and management of production processes at ZZHRK have been impossible due to illegal actions of third parties.
The administration of ZZRK filed a corresponding application with the SBU and law enforcement agencies. It was also noted that information about individuals who cooperate with the occupiers of the aggressor country and assist them in committing illegal actions against the enterprise and its property was transferred to the SBU and other law enforcement agencies to respond to the fact of the seizure of the enterprise and collaboration in accordance with the criminal legislation of Ukraine.
ZZHRK develops the Pivdenno-Belozerskoye and Pereverzevskoye iron ore deposits and produces commercial sinter and open-hearth iron ore. The company sells its products to steelmakers in Slovakia, the Czech Republic, Austria and Poland, as well as to Zaporizhstal in Ukraine.
According to the NDU data for the first quarter of 2023, the main shareholders of the company are the Slovak company Minerfin, a.s. – 51.1698%, Zaporizhstal – 29.5193%, Czech KSK Consulting, a.s. – 19,0632%.
Agroholding KSG Agro because of the full-scale war launched by Russia ended 2022 with a net loss of $1.68 million compared to $17.71 million net profit in 2021, its EBITDA decreased 5.5 times to $1.79 million, the company said in its annual report on the Warsaw Stock Exchange.
“Disruption of traditional logistics, limitation of exports by the grain corridor, growth of personnel costs, security and energy autonomy – to list the negative factors of the new realities can be long. So, of course, the results of 2022 can not be compared with the previous year, which was a record result in terms of harvest, “- commented Sergey Kasyanov, the head of the Board of Directors and the majority shareholder of the agricultural holding.
According to the report, its revenue last year decreased 47.3% – to $16.2 million, gross profit – 3.3 times, to $3.18 million and operating profit – 18.8 times, to $0.44 million.
It is also specified that exchange losses increased 4.6 times to $2.63 million, net debt increased only 1.9% to $47.46 million and free cash at the end of the year was $0.27 million.
Last December, the inactive subsidiary Hlebna League LLC was also disposed of, and the loss on its disposal was $10.27 million.
“Despite the formal losses, our 2022 agroholding provided stable operations. Due to the vertical integration of building the business we did not increase the credit load, expanded the share of pork sales, providing 80% in the native Dnepropetrovsk region and entering the markets of Zaporozhye and Kharkov, where pork producers as a result of Russian aggression curtailed their activities,” – said Kasyanov.
“The Board of Directors is currently working on a new development strategy to expand the group’s operations in the European Union with the clear goal of having most of the group’s assets and revenues in the EU within the next 3-5 years,” the report said again.
It is pointed out that this can be achieved through a series of mergers and acquisitions, as well as equity and debt financing, including additional share issues.
“The board of directors has no plans to sell the group’s existing assets in Ukraine. On the contrary, the focus of the new strategy is on expansion and investment, thereby reducing the potential risks of investing in Ukraine alone and mitigating the negative impact on the group’s business of the current macroeconomic situation in Ukraine,” the document states.
According to it, the total number of pigs and piglets of agrarian group reduced only by 3.3% last year – to 42.26 thousand, while during the year it came to 106.04 thousand against 108.16 thousand a year earlier.
The report indicates that crop revenue fell more than fourfold to $4.5 million from $8.3 million.
According to the document, in December 2022, KSG Agro agreed with its main bank lender TAScombank on new loan terms from the first quarter of 2023, which better reflect the group’s wartime financing needs. According to them, the established total credit limit on TAScombank loans remains at 450 million UAH, the interest rates on tranches in UAH are 25% per annum and provide for partial compensation of the rate on state programs, and the interest rates on tranches in USD and euro are set at 9% per annum.
Under the new terms, the main part of the principal must be paid in December 2025, while under the previous conditions by the end of 2023 should already have been paid $ 9.57 million.
It is specified that in the first quarter of 2023, the company repaid a total of $7.08 million of the existing TAScombank loans and received new tranches under the new terms totaling $6.03 million.
In addition, the $15.5 million loan to Kasyanov’s OLBIS Investments S.A., which owns 57.96 percent of KSG Agro, has been extended through 2036, the report said.
“Based on management’s five-year financial projections, the group is expected to generate sufficient profits in the future to ensure that total capital will increase to a positive value in the long term. In addition, when Russia’s war in Ukraine eventually ends and the economy begins to recover, the fair value of the group’s assets is also expected to increase naturally. Until then, the group is dependent on continued external financing,” the paper said.
KSG Agro, a vertically integrated holding company, is engaged in pig breeding as well as the production, storage, processing and sale of grain and oilseeds. Its land bank is about 21 thousand hectares in Dnipropetrovsk and Kherson regions.
According to Agroholding, it is one of the top-5 pork producers in Ukraine.
PJSC ArcelorMittal Krivoy Rog (Dnipropetrovsk Region) ended 2022 with a net loss of UAH 49 billion 9.104 million, while in 2021 it posted a net profit of UAH 25 billion 282.951mn.
According to the official information of the company, the net loss per share reached 12.7 UAH. At that, based on the results of the last year AMKR assets amounted to 52 billion 682.761 million UAH, shareholders’ equity – 28 billion 212.939 million UAH, and long-term liabilities – 6 billion 46.354 million UAH.
Commenting on the results of activities in 2022, Mauro Longobardo, the general director of AMKR, stated that the main conclusion that can be made now is that the enterprise has survived and has not stopped working in spite of the full-scale war.
“The question of survival and resistance to all adverse factors has become the main task of the entire mining and metallurgical industry throughout 2022. Now ArcelorMittal Krivoy Rog continues to fight for survival, having survived last year’s difficulties related to the blockade of major seaports, as well as power outages and even a missile strike. We manage to maintain a satisfactory state of the company’s liquidity, including by attracting credit funds under ArcelorMittal group guarantees,” the top manager noted.
He also added that the support of the parent company, as well as the heroic work of the employees, made it possible to maintain the pulse of production in Kryvyi Rih.
“Now we are concentrating on gradually resuming more and more production processes at the combine and we expect to move to positive EBITDA as early as the second half of this year,” Longobardo said.
According to him, according to international financial reporting standards, in 2022 the company recognized UAH 36 billion of losses from a decrease in the usefulness of its non-current assets as a result of negative changes in the economic environment caused by Russian military aggression. Under the conditions of full-scale war in 2022 the level of AMKR capacity utilization did not exceed 20-25%. In spite of this, the company retained its staff, and all employees receive their salaries on time.
The company does not stop investing even in the extremely difficult wartime conditions. Now those investment projects are being implemented, without implementation of which the production of steel and ore may stop completely. Among such projects is the construction of the new tailing pond “The Third Map”, which is necessary for the continuation of production and safe storage of the production wastes.
It is also reported that in 2022 AMKR invested $181.4 million in production development, of which operating costs amounted to $68.6 million and capital – $112.8 million. During the 17 years of work in Ukraine ArcelorMittal invested $10.6 billion (including $4.8 billion – the amount of purchase at privatization + $5.8 billion – investment in production development).
“ArcelorMittal Krivoy Rog is the largest producer of rolled steel in Ukraine. It specializes in the production of long products, particularly rebars and wire rod.
ArcelorMittal owns in Ukraine the largest mining and metallurgical plant “ArcelorMittal Krivoy Rog” and a number of small companies, in particular PJSC “ArcelorMittal Beryslav”.
