The net consolidated profit of the Naftogaz Group in January-March 2024 amounted to UAH 10.9 billion against a net loss of UAH 1.9 billion in the first quarter of last year, the press service said on Friday.
According to the press service, the group’s consolidated operating profit in the first quarter of 2024 amounted to UAH 12.4 billion, which is 3.6 times more than in January-March 2023 (UAH 3.4 billion).
At the same time, in January-March 2024, Naftogaz Group paid UAH 18.2 billion in taxes to the state budget, which is 6% of all payments controlled by the State Tax Service of Ukraine.
“Naftogaz remains Ukraine’s backbone in times of war. We are working together to improve our position by showing an increase in financial performance. In the first quarter of 2024, we also improved the financial result of the group’s parent company, NJSC Naftogaz of Ukraine. It earned a net profit of UAH 8.1 billion, which is UAH 0.4 billion more than in the same period of 2023,” said Oleksiy Chernyshev, CEO of Naftogaz.
He also recalled that at the end of March 2024, the group successfully completed the 2023/2024 heating season under PSO without receiving any additional funding from the state.
As reported, in 2023, the net consolidated profit of Naftogaz Group amounted to UAH 23.1 billion, compared to a loss of UAH 79.1 billion in 2022.
“Ukrproduct Group, a major Ukrainian producer of packaged butter and processed cheese, posted a net profit of GBP0.39 million in 2023, compared to a net loss of GBP0.80 million in 2022.
According to a report posted by the company on the London Stock Exchange, revenue decreased by 5.4% to GBP36.99 million, but increased by 19.5% in hryvnia terms.
“Ukrproduct’s consolidated revenue in FY2023 increased by 8% in UAH. The overall sales growth was driven by a focus on the development of key products, namely processed cheeses and processed cheese products, the development of new product categories, snacks and beverages, as well as the expansion of the group’s presence in retail chains,” the document says.
It is specified that in the processed cheese and processed cheese products category, sales amounted to GBP24.9 million, which reflects a 25.7% increase in revenue in hryvnia compared to the previous year, while in physical terms, sales increased by 12.4%. This was mainly due to an increase in exports to the Middle East, the focus of marketing campaigns on these product categories and the development of new positions, the report says.
According to the report, sales of butter in 2021 amounted to GBP3.1 million, reflecting a 3.4% increase in revenue in UAH terms, while sales in volume terms decreased by 4.3%. “A significant increase in the purchase price of raw milk and butter in Ukraine in the second half of 2023, rising logistics costs and increased competition in the market led to a decrease in the margin of butter sales,” Ukrproduct added.
Spreads sales decreased to GBP4.6 million in 2023 from GBP5.6 million in the previous year, down 6% in hryvnia terms and 12.9% in volume terms. The decline was mainly due to increased competition in the market, the company explained.
It is indicated that sales of skimmed milk powder fell by 52.1% in hryvnia, or to GBP1.1 million from GBP2.5 million a year earlier. In volume terms, skimmed milk powder sales decreased by 43.4%. Due to the significant decline in skimmed milk powder prices in 2023, the Group minimized the production of this product for sale in favor of using it as an ingredient in the production of processed cheeses.
Sales of kvass and beverages in FY2023 amounted to GBP1.8 million, up 90.2% in UAH terms and 42.8% in volume terms. The growth was driven by the resumption of a full sales period in fiscal 2023, while in 2022 the sales season in key kvass regions was postponed until June due to the Russian invasion of Ukraine.
It is noted that in 2023 Ukrproduct focused on trade marketing activities, in particular on providing discounts to customers and consumers, rather than on advertising campaigns, resulting in a 51.3% decrease in marketing expenses compared to 2022.
Other operating expenses in 2023 amounted to GBP1.1 million compared to GBP1.6 million in 2022, including impairment losses on inventories of products that the company was unable to export due to the blockade of Ukrainian Black Sea ports, as well as minor fines and some VAT losses.
According to the report, Ukrproduct’s EBITDA for 2023 amounted to GBP2.4 million, which is 32.8% higher than in 2022.
It is noted that financial expenses in 2023 increased by 67.6% to GBP0.78 million, mainly due to higher interest rates and recognized additional interest expense on the loan from the European Bank for Reconstruction and Development (EBRD) for previous periods. It is specified that in June 2023, despite the difficult operating environment due to the war in Ukraine, the EBRD decided to exercise its right under the loan agreement and increased the interest rate on the loan retroactively from September 2021. At the same time, the company has not yet paid the EBRD a tranche of EUR 2.1 million, which was due in December 2022, and did not pay interest on the debt in the amount of about EUR 5.7 million from March 2022 to December 2023. Restructuring negotiations are ongoing.
Ukrproduct’s free cash flows at the end of 2023 amounted to GBP0.4 million, the same as a year earlier.
“In 2024, the group plans to focus on maintaining its existing production facilities, supporting sales volumes and continuously improving operational efficiency,” the document emphasizes.
It is also reported that as of June 19, 2024, Jack Rowell resigned from the Board of Directors after 19 years as its Chairman. Serhiy Yevlanchyk became the interim chairman of the board in addition to his role as Ukrproduct’s executive director.
As reported, the company earned GBP0.65 million in net profit in the first half of 2023, compared to a GBP0.20 million net loss in the same period of 2022. Its revenue in the first half of the year remained at the level of the first half of 2022 – GBP18.3 million, but increased by 19.5% in hryvnia.
Pivdennyi GOK (Northern Mining and Processing Plant, Kryvyi Rih, Dnipro Oblast), a part of Metinvest Group, reported a net profit of UAH 866.090 million in 2023, compared to a net loss of UAH 2 billion 972.333 million in 2022.
According to the decision of the sole shareholder, Metinvest B.V. (Netherlands), which owns 100% of the shares in Pivnichnyi GOK, at its meeting on April 30, 2024, the profit for 2023 was left undistributed.
Another shareholder’s decision – at the meeting of May 14, 2024 – changed the company’s management structure to a one-tier one with the corresponding amendments to the charter. At the same time, after the registration of the updated charter, the supervisory board was liquidated and a four-member board of directors was created. It includes Metinvest CEO Yuriy Ryzhenkov, Metinvest CFO Yulia Dankova and Metinvest Legal Director Svetlana Romanova as non-executive directors for three years, as well as Igor Tonev as executive director, whose position as CEO is being eliminated.
Earlier, based on the shareholder’s decision of March 28, 2024, Andrey Skachkov’s powers as CEO were terminated by agreement of the parties, and Tonev was appointed CEO.
On May 24, 2024, the state registration of the new version of Northern GOK’s charter took place. On May 25 this year, at a meeting of the Board of Directors of Northern GOK, Metinvest’s CFO Yulia Dankova was elected Chairman of the Board of Directors for a term from May 25, 2024 to May 24, 2027 inclusive. Igor Tonev was elected Chief Executive Officer with a term of office from May 25, 2024 to April 2, 2025 inclusive. And it was determined that in accordance with clause 7.8 of the Charter of Northern GOK, the chief executive officer is referred to as the general director in the company’s activities in general, organizational structure, staffing and document flow.
By the decision of the shareholder of June 13, 2024, at its meeting, the net profit of UAH 580.409 million received in January-March of this year is allocated to pay dividends for 2024. At the same time, UAH 0.25 of dividends are paid per ordinary share.
The Board of Directors of the company (Minutes No. 3 dated June 14, 2024) decided to establish the date of compiling the list of persons entitled to receive dividends, the procedure and term for their payment. The start date of dividend payment is July 1, 2024, and the end date of dividend payment is December 13, 2024 inclusive.
As reported, for 9M2023, Northern Mining earned a net profit of UAH 681.867 million, while it ended the same period in 2022 with a net loss of UAH 2 billion 227.488 million. Retained earnings as of the end of September 2023 amounted to UAH 10 billion 727.921 million.
The company ended 2022 with a net loss of UAH 2 billion 972.333 million, while in 2021 it made a net profit of UAH 25 billion 293.042 million.
It was also reported that in April this year, Metinvest introduced a new model for the operation of Kryvyi Rih mining enterprises, uniting mining and processing plants in Kryvyi Rih under a single management. Central, Ingulets and Northern GOKs are managed by a single administrative and management center. For this purpose, a mining department was set up within the group’s operating directorate. The department is headed by Igor Tonev, who has also been appointed as the sole CEO of the three GOKs. Prior to this position, he was the head of Metinvest-SMC’s sales company since 2019 and has been with Metinvest since 2011.
The plant specializes in the extraction, processing and sale of iron ore.
Metinvest B.V. owns 100% of the shares in Northern GOK.
Northern GOK is part of Metinvest Group, whose major shareholders are System Capital Management (SCM, Donetsk) (71.24%) and Smart Holding Group (23.76%). Metinvest Holding LLC is the management company of Metinvest Group.
The authorized capital of Yenakiieve Mining is UAH 579.707 million.
PrJSC Ingulets Mining and Processing Plant (InGOK, Kryvyi Rih, Dnipro region), a member of Metinvest Group, reduced its net loss by 5 times to UAH 167.235 million in 2023 from UAH 851.259 million in 2022.
According to the decision of the sole shareholder, Metinvest B.V. (Netherlands), which owns 100% of the shares of PJSC “InGOK”, at its meeting on April 30, 2024, the losses for 2023 will be covered by future periods.
Another shareholder’s decision – at the meeting of May 14, 2024 – changed the company’s management structure to a one-tier one with the corresponding amendments to the charter. At the same time, after the registration of the updated charter, the supervisory board was dissolved and a four-member board of directors was created. It includes Metinvest CEO Yuriy Ryzhenkov, Metinvest CFO Yulia Dankova and Metinvest Legal Director Svetlana Romanova as non-executive directors for three years, as well as Igor Tonev as executive director, whose position as CEO is being eliminated.
Earlier, based on the shareholder’s decision of March 23, 2024, Oleksandr Gerasymchuk’s powers as CEO were terminated by agreement of the parties, and Tonev was appointed CEO.
On May 24, 2024, the state registration of the new version of the charter of InGOK took place. On May 25 this year, at a meeting of the Board of Directors of InGOK, Metinvest’s CFO Yulia Dankova was elected Chairman of the Board of Directors for a term from May 25, 2024 to May 24, 2027 inclusive. Igor Tonev was elected Chief Executive Officer with a term of office from May 25, 2024 to April 2, 2025 inclusive. And it was determined that in accordance with clause 7.8 of the charter of InGOK, the chief executive officer in the general activities, organizational structure, staffing and document flow of the company is called the general director.
By the shareholder’s decision of June 13, 2024, at its meeting, the net profit of UAH 1 billion 613.7 million received in January-March of this year is allocated to pay dividends for 2024. At the same time, almost UAH 0.585 of dividends are paid per ordinary share.
The Board of Directors of the company (Minutes No. 2 dated June 14, 2024) decided to establish the date of compiling the list of persons entitled to receive dividends, the procedure and term for their payment. The start date of dividend payment is July 1, 2024, and the end date of dividend payment is December 13, 2024 inclusive.
As reported, InGOK completed 9 months of the year. 2023 with a net loss of UAH 1 billion 316.821 million, while in the same period of 2022 it received a net profit of UAH 113.843 million. The company’s retained earnings as of the end of September 23 amounted to UAH 13 billion 869.051 million.
InGOK ended 2022 with a net loss of UAH 851.259 million, while in 2021 it received UAH 20 billion 446.101 million in net profit. In 2020, InGOK reduced its net profit by 75.3% year-on-year to UAH 1.5 billion.
It was also reported that in April this year, Metinvest introduced a new model for the operation of Kryvyi Rih mining enterprises, uniting mining and processing plants in Kryvyi Rih under a single management. Central, Ingulets and Northern GOKs are managed by a single administrative and management center. For this purpose, a mining department was set up within the group’s operating directorate. The department is headed by Igor Tonev, who has also been appointed as the sole CEO of the three GOKs. Prior to this position, he was the head of Metinvest-SMC, a sales company, since 2019, and has been with Metinvest since 2011.
The company specializes in the extraction and processing of ferruginous quartzite from the Ingulets deposit located in the southern part of the Kryvyi Rih iron ore basin. It produces iron ore concentrate. The company’s production capacity is 14 million tons of iron ore concentrate per year.
Metinvest B.V. (Netherlands) owns 100% of the shares of PrJSC “InGOK”.
The authorized capital of PrJSC “InGOK” is UAH 689.906 million, the share price is UAH 0.25.
InGOK is a part of Metinvest Group, whose major shareholders are System Capital Management (SCM, Donetsk, 71.24%) and Smart Holding Group (23.76%). Metinvest Group’s management company is Metinvest Holding LLC.
Zaporozhkoks, one of Ukraine’s largest coke and chemical producers, earned a net profit of UAH 399.840 million in 2023, which it retained as undistributed.
According to the minutes of the general meeting of shareholders held on April 30, a copy of which is available to Interfax-Ukraine, the meeting was attended by both shareholders – Metinvest B. V. (the Netherlands), which owns 57.2347% of the company’s shares, and Zaporizhstal, which owns 42.7653% of the shares.
The meeting approved the report of the Supervisory Board for 2023, recognizing its work as satisfactory. The shareholders also recognized the work of the company’s executive body as satisfactory, took note of the audit results and approved the results of the plant’s financial and economic activities for the past year, determined the procedure for distributing profits and gave preliminary consent to enter into significant transactions.
In addition, they amended the employment contract with the executive director.
According to the minutes of the other general meeting of shareholders of the company held on June 13 this year, a copy of which is also available to the agency, the meeting was attended by both shareholders – Metinvest B. V. (Netherlands) and “Zaporizhstal” Steel Works.
In January-March 2024, the company received a net profit of UAH 289 million 834,763 thousand, which it was decided to allocate to pay dividends for 2024. At the same time, almost UAH 2.43 of dividends are paid per ordinary share.
The Board of Directors of the company (Minutes No. 3 dated June 14, 2024) decided to establish the date of compiling the list of persons entitled to receive dividends, the procedure and term for their payment. The start date of dividend payment is July 1, 2024, and the end date of dividend payment is December 13, 2024 inclusive.
As reported, Zaporozhkoks earned a net profit of UAH 163.576 million in January-September 2023, while the same period in 2022 ended with a net loss of UAH 385.255 million. Retained earnings as of the end of September 2023 amounted to UAH 3 billion 131.849 million.
The plant ended 2022 with a net loss of UAH 249.382 million, while in 2021 it made a net profit of UAH 2 billion 997.541 million. In 2020, the plant increased its net profit by 72.2% year-on-year to UAH 166.436 million.
The company ships its products to the domestic market, Europe, Turkey, and Canada. The structure of chemical sales in 2022 was as follows: 50.4% – domestic market, 49.6% – exports.
“Zaporizhkoks has a full technological cycle of coke and chemical products processing.
Metinvest B. V. (the Netherlands) owns 57.2347% of the company’s shares, while Zaporizhstal owns 42.7653%.
The company’s authorized capital is UAH 1.193 million, with a share price of UAH 0.01.
“Metinvest is a vertically integrated mining group of companies. Its major shareholders are SCM Group (71.24%) and Smart Holding (23.76%), which jointly manage the company.
Metinvest Holding LLC is the management company of Metinvest Group.
In the first quarter of 2024, KSG Agro agricultural holding reduced its net profit by 37% to $0.96 million, while revenue decreased by 2% to $5.02 million, according to the company’s report on the Warsaw Stock Exchange.
“As in the previous year, the Group used more of its own grain for feed production rather than purchasing it (to reduce dependence on external suppliers of feed components in wartime). In 2024, the Group continues to export grain,” the document says.
According to it, due to a 10-fold increase in the benefits of biological transformation this year (up to $1.06 million), gross profit increased by 10% to $2.26 million, operating profit by 5% to $1.61 million, while EBITDA decreased by 2% to $1.83 million.
It is specified that the higher profit last year was due to the sale of a subsidiary for $0.76 million.
According to the report, KSG Agro managed to slightly reduce its net debt in the first quarter of this year to $15.06 million from $15.63 million due to a reduction in bank loans to $15.17 million from $15.84 million. The agricultural holding’s free cash flows at the end of March amounted to $0.11 million compared to $0.21 million at the beginning of the year.
During January-March 2024, the key operating subsidiary KSG Dnipro issued $5 million of C and D series bonds with a coupon rate of 7% per annum and maturity in August and October 2025, respectively, of which it placed $1.35 million of C series bonds.
As noted, the sowing campaign is proceeding according to plan, without significant interruptions due to military operations. As of the date of the report, the group sowed sunflower on an area of 7.7 thousand hectares, wheat on 2.2 thousand hectares and rapeseed on 1.43 thousand hectares.
According to the report, KSG Agro, a vertically integrated holding company, is one of the top 5 pork producers in Ukraine. It is also engaged in the production, storage, processing, and sale of grains and oilseeds. Its land bank is about 21 thousand hectares in the Dnipro and Kherson regions.
In 2023, KSG Agro reduced its net loss by 30.9% to $1.16 million, while revenue increased by 13.8% to $18.79 million.
