Dneprovagonmash, Ukraine’s largest railcar manufacturer, controlled by businessman Sergiy Tigipko’s TAS Financial and Industrial Group, ended January-September 2023 with a net profit of UAH 51.09 million, up 8.3 times compared to the same period in 2022.
According to the company’s interim financial statements published on Wednesday in the NSSMC’s information disclosure system, its net sales revenue decreased by 14.7% to UAH 724.62 million.
In January-September, the company increased its gross profit by 18.7% to UAH 96.9 million, earning UAH 53.5 million in operating profit (4.6 times more).
The report does not disclose the number of railcars produced and sold in the reporting period.
As before, the report mentions the risk of rising prices for components, materials and energy (material costs account for 80-90% of the cost of production) and lower prices for railcars as price risks for the company.
“Ongoing military operations, uncertainty of further developments, including the intensity or potential timing of the cessation of these actions, may significantly affect the economic situation in the country and, accordingly, the activities of Dneprovagonmash,” the report says.
As reported, in the first half of this year, DVM received UAH 57.85 million in net profit against almost UAH 25 million in losses for the same period last year, with net income growing by 17.2% to UAH 578 million.
Thus, in the third quarter of 2023, the company received a UAH 6.76 million loss against a UAH 31.14 million net profit in July-September 2022, with net income falling 2.4 times to UAH 146.61 million.
“Dneprovagonmash is one of Ukraine’s leading freight car design and manufacturing companies. Its annual production capacity is 9 thousand units.
As reported, an extraordinary meeting of shareholders of DVM JSC on July 25 decided to transform it into TAS Dneprovagonmash LLC.
In October of this year, in cooperation with Austrian partners, the company shipped the first lightweight modular freight cars (MultiBOX) intended for use on the EU railways as part of the TransANT innovation project.
In 2022, DVM’s net income increased by 77.3% to UAH 1 billion 108.7 million, with net profit of UAH 48.64 million compared to a loss of UAH 111.3 million a year earlier. At the same time, sales of railcars increased by 35% to 623 units, and production by 21% to 577 units.
TAS Group was founded in 1998 by businessman Tigipko. Its business interests include the financial sector (banking and insurance) and pharmacy, as well as industry, real estate, and venture capital projects.
In January-June 2023, PJSC Ukrnafta made a net profit of UAH 14.1 billion, the company’s CEO Sergiy Koretsky posted on Facebook on Tuesday morning.
“Net profit for the first half of 2023 amounted to UAH 14.1 billion. At the moment, net profit has exceeded UAH 20 billion. This is the net profit from business activities, the result after paying all taxes, including income tax. There were no changes in accounting policies,” he said.
According to him, the company’s projected revenue for the current year will be UAH 95 billion, which is twice the average annual revenue over the past decade.
“And the rise in oil prices has nothing to do with it. It’s a transparent market work without intermediaries,” emphasized Koretsky.
The Ukrnafta CEO also clarified that the company paid UAH 12.3 billion in taxes in the first half of the year, including UAH 3.3 billion in income tax. The plan for tax payments for the whole of 2023 is UAH 27 billion, including about UAH 5 billion of income tax.
“For example, over the past 10 years, we have paid UAH 12 billion in income tax. Accordingly, in 2023 alone, the company will transfer five times more money to the state budget than it was on average in 2012-2021,” he wrote.
At the same time, based on the results of its business activities this year, the company is preparing to pay at least UAH 6 billion in dividends if the shareholders’ meeting decides to pay a minimum rate of 30%, which even then will be more than the total result of the last 10 years.
“Ukrnafta is Ukraine’s largest oil producer and operator of a national network of 537 filling stations, of which 456 are in operation. The company is implementing a comprehensive program to restore operations and update the format of its filling stations. Since February 2023, Ukrnafta has been issuing its own fuel coupons and NAFTAKarta cards, which are sold to legal entities and individuals through Ukrnafta-Postach LLC.
Ukrnafta’s largest shareholder is Naftogaz of Ukraine with a 50%+1 share. On November 5, 2022, the Supreme Commander-in-Chief of the Armed Forces of Ukraine decided to transfer to the state a share of corporate rights of the company owned by private owners, which is currently managed by the Ministry of Defense. In November 2022, Serhiy Koretskyi was appointed director of the company.
The net profit of the state-owned Oschadbank (Kyiv) in January-September 2023 amounted to UAH 14.18 billion, which is 6 times higher than the same period in 2022, according to the bank’s interim condensed report for the third quarter.
According to the report, the state-owned bank’s net profit for the third quarter amounted to UAH 7.34 billion, which is UAH 3.04 billion more than in the second quarter of this year and UAH 0.56 billion more than in the third quarter of last year.
According to the report, Oschadbank’s net interest income increased by 32.2% year-on-year to UAH 13.89 billion in January-September 2023, including a 24.4% increase to UAH 4.95 billion in the third quarter, which is UAH 0.75 billion more than in the second quarter of this year.
Net fee and commission income for the first nine months of this year increased by 24.8% to UAH 5.07 billion, including 0.3% to UAH 1.75 billion in Q3. Meanwhile, in April-June this year, this figure was equal to UAH 1.65 billion.
A significant contribution to the improvement of the bank’s financial result was made by the dissolution of provisions for expected credit losses on assets: for the first 9 months of this year, it amounted to UAH 1.4 billion, including UAH 0.16 billion in the third quarter, while for the same period last year, Oschadbank formed additional provisions of UAH 9.61 billion and UAH 4.20 billion, respectively.
The state-owned bank also reports that its total profit for January-September this year reached UAH 14.23 billion, 6.7 times higher than in the comparable period of 2022. In the third quarter of 2023, total profit increased by 9.2% compared to the third quarter of last year and by 69.1% compared to the second quarter of this year.
According to the report, in 9M2023, the bank’s assets increased by 16.9%, reaching UAH 314.78 billion by September 30. This growth is attributed to the increase in cash, correspondent accounts and funds with the NBU from UAH 28.36 billion to UAH 62.56 billion. In addition, according to the report, the volume of investments increased by UAH 10.07 billion to UAH 153.45 billion.
As for loans to customers, they grew by 3.1% to UAH 83.03 billion in the third quarter, but still remain below the figure of UAH 83.22 billion in July-September last year. Of this amount, UAH 62.07 billion was granted to corporate entities, UAH 7.54 billion to government and local authorities, and UAH 4.55 billion in mortgage loans.
Over the first nine months of 2023, Oschadbank’s customer accounts increased from UAH 233.94 billion to UAH 268.89 billion, while banks’ accounts decreased from UAH 0.54 billion to UAH 0.24 billion.
The equity of the financial institution increased by UAH 14.04 billion to UAH 36.2 billion in the first nine months of this year.
According to the National Bank of Ukraine, as of September 1, 2023, Oschadbank ranked second in terms of total assets (UAH 337.99 billion) among 64 operating banks in the country and first in terms of the number of branches – 1182.
The net profit of solvent banks in January-September 2023 reached UAH 109.9 billion, while in the same period of 222 this figure was only UAH 7.4 billion, the press service of the National Bank of Ukraine (NBU) reports.
“The main factor in the sector’s profitability remains the growth of interest income, primarily from highly liquid assets,” the regulator emphasized.
According to the NBU, operating income of financial institutions increased by 17.9% over the first nine months of the year, while net interest income increased by 38.7%. “Despite the increase in interest expenses due to higher interest rates on deposits, interest income grew more significantly,” the central bank said.
It is indicated that net fee and commission income in January-September increased by 5.4% year-on-year, but at the same time, its growth rate gradually slowed down due to a weak increase in payment card transactions.
The share of interest income in 9M2017 increased to 67.9% from 59.2% last year, while commission income decreased to 21.6% from 23.4%, and income from foreign exchange operations decreased to 7.3% from 14.5% due to the stability of the hryvnia exchange rate.
Overall, net operating profit before provisions increased by 23.9% to UAH 139 billion.
Another factor behind the sharp increase in profit was a 17-fold reduction in provisioning to UAH 5.7 billion. At the same time, the regulator reminded that since the beginning of the full-scale invasion of the Russian Federation, banks have formed UAH 104 billion of additional loan provisions.
In general, the sector’s return on equity as of October 1, 2023 amounted to 56.9% compared to 4.3% in 2022.
“The income tax accrued for the first nine months exceeded the corresponding annual figure for the historically most profitable year of 2021,” the NBU said. According to it, it amounted to UAH 19 billion against UAH 4.3 billion in the first nine months of last year.
It is reported that as of October 1 this year, only six banks out of 63 solvent banks made a loss, which in total amounted to UAH 155 million.
According to the NBU, preliminary results of the sustainability assessment show that banks generally adequately assess credit risks. However, possible adjustments to the valuation of assets and provisions by individual financial institutions may affect annual profitability, the regulator said.
According to the NBU, in September, the net profit of banks increased to UAH 14.8 billion from UAH 11.9 billion in August and almost reached the record figure of UAH 15.5 billion in July, while last September banks ended with a net loss of UAH 1.06 billion.
In July-September 2023, Ukrainian mobile operator lifecell increased its net profit by 45.5% year-on-year to UAH 555.4 million.
According to the report of Turkcell’s parent company on its website on Tuesday, lifecell’s revenue in the third quarter of this year increased by 25.7% to UAH 2.98 billion, which is explained by price adjustments.
The operator’s EBITDA increased by 16.3% to UAH 1.65 billion, while the EBITDA margin decreased by 4.5 percentage points to 55.3%.
“lifecell achieved an EBITDA margin of 55.3%. The decline is due to increased costs for roaming, interconnection services and electricity costs,” Turkcell said in a press release.
The operator’s capital expenditures in the third quarter increased by 48.9% to UAH 952.1 million.
According to the report, lifecell’s active subscriber base amounted to 9.1 million in the third quarter, up from 8.6 million in the previous quarter and 8.2 million a year earlier. The total number of customers increased to 11.4 million from 11.1 million in the previous quarter and 10.1 million a year earlier.
At the same time, ARPU (average revenue per user per month) among active users increased by 19.2% year-on-year and by 0.9% quarter-on-quarter to UAH 113.7.
“The penetration of lifecell smartphones amounted to 84.3% at the end of the third quarter. As of the end of June, on average, about 97% of stores in the country were open daily,” the report said.
Turkcell added that lifecell’s current cash reserves are “more than sufficient” to support its operations.
Overall, in the first nine months of the year, lifecell’s revenue increased by 26% year-on-year to UAH 8 billion 571.8 million, EBITDA by 26.1% to UAH 4 billion 968.9 million, and net profit by 2.9 times to UAH 1 billion 68.6 million. The company also increased its capital investments by 51% to UAH 3 billion 035.7 million.
lifecell is the third largest mobile operator in Ukraine. Turkcell owns 100% of the shares in Lifecell LLC.
In the third quarter, lifecell’s revenue accounted for 75.9% of Turkcell International’s revenue and 8.4% of Turkcell’s total revenue. The Ukrainian operator accounted for 10.6% of consolidated EBITDA and 7.4% of consolidated profit of Turkcell.
In January-September of this year, a major Ukrainian glass container manufacturer PJSC Kostopil Glassworks (KZG, Rivne region) posted a net profit of UAH 408.56 million, up 3.6 times compared to the same period in 2022.
According to the company’s interim reports published on its website, net income for the period increased by almost 26% to UAH 1 billion 402 million.
The company’s operating profit grew 3.3 times to UAH 504.2 million, while gross profit increased 2.6 times to UAH 567.1 million.
In January-September, the company mainly sold beverage containers (95% of total sales), which amounted to 259.2 million units for UAH 1 billion 344 million.
According to the information published on Monday in the disclosure system of the National Securities and Stock Market Commission, on December 7, the company’s shareholders intend to approve the transfer deed between JSC and Kostopil Glassware Plant LLC at an extraordinary meeting.
The decision to transform into a limited liability company (LLC) was made at the general meeting of shareholders of KZP JSC on April 28 this year “in order to simplify the management system and minimize the costs associated with servicing a private joint-stock company.”
As of the second quarter of 2023, 19.4639% of KZS PrJSC shares are owned by Dmytro Oliynyk, Chairman of the Federation of Employers of Ukraine, more than 30% of shares are owned by three other members of his family, Bulgarian Fisherman Investments owns almost 22%, and Andriy Rybytskyi owns more than 9%.
The plant produces bottles for perfumery and medical products, as well as bottles for alcoholic and non-alcoholic beverages, and two-liter decanters.
The company, according to its website, is one of the leading industrial enterprises in Rivne region and one of the five largest glass container manufacturers in Ukraine. The company’s capacity allows it to produce 432 million pieces of glass per year.
The company’s main customers are Nemyriv, Khortytsia, Khlibnyi Dar, Pepsi-Cola, and Carlsberg brands.
The products are sold in Ukraine and exported to Poland, Hungary, Romania, Slovakia, Spain, and Moldova.
In 2022, 84% of the company’s products were exported (compared to 49% a year earlier), mostly to Poland and Hungary.
