The net consolidated profit of Naftogaz Group in January-March 2024 increased by 3.7 times (by UAH 17.839 billion) compared to the same period last year, to UAH 24.414 billion.
According to the consolidated financial statements published on Naftogaz’s website, its sales revenue for the first half of the year increased by 28.1% (by UAH 31.456 billion) to UAH 143.373 billion, gross profit by 4.1 times (by UAH 33.479 billion) to UAH 44.377 billion, and operating profit by 2.1 times (by UAH 14.907 billion) to UAH 28.904 billion.
According to the group’s press service, the improvement in financial results was achieved, in particular, due to an increase in revenues from the sale of gas, oil and petroleum products, as well as natural gas distribution services.
The key companies that showed a profit in the first half of 2024 are Naftogaz of Ukraine, Ukrgasvydobuvannya, Ukrtransgaz, Ukrnafta, Gas Supply Company Naftogaz of Ukraine, and Ukrtransnafta.
In addition, in January-June 2024, the group’s companies paid UAH 44 billion in taxes to the state budget, or 7.5% of all payments controlled by the State Tax Service of Ukraine.
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.
The net profit of solvent banks in Ukraine in January-August 2024 reached UAH 106.08 billion, which is 11.6% more than in the same period in 2023, according to the National Bank of Ukraine (NBU).
According to the NBU, in August this year, banks’ net profit decreased to UAH 12.47 billion from UAH 14.58 billion a month earlier, up 4.8% compared to August 2023.
According to the National Bank, net interest income in January-August this year increased by 18.5% to UAH 152.74 billion, while net commission income increased by 8.2% to UAH 36.11 billion.
The share of interest income in the total structure of banks for 8 months of this year increased to 68.6% from 67.5% for 8 months of last year, while the share of commission decreased to 21.0% 21.9%.
At the same time, in August of this year, net interest income increased by 11.6% to UAH 19.98 billion compared to August of last year, while net fee and commission income increased by 14.3% to UAH 4.48 billion.
According to the NBU, in August, banks added additional reserves in the amount of UAH 0.78 billion compared to UAH 0.75 billion in July and UAH 1.68 billion in June, but in general, since the beginning of the year, this figure amounted to only UAH 1.15 billion compared to UAH 6.52 billion for 8 months of last year, including UAH 1.62 billion in August-2023.
It is noted that banks paid UAH 30.71 billion in income tax in January-August this year, compared to UAH 17 billion last year.
As reported, last fall, the Verkhovna Rada retroactively increased the bank profit tax for 2023 from 18% to 50%, setting it at 25% for the following years. However, this year, in September, the Parliament again approved in the first reading a retroactive increase in the bank profit tax to 50% in 2024.
However, the National Bank opposes this and said it would try to persuade parliamentarians.
In March-June, mobile operator lifecell’s revenue increased by 10% year-on-year to UAH 3.215 billion.
According to the report of the parent company Turkcell, lifecell’s net profit in the second quarter increased by 3% to UAH 630.2 million.
Lifecell’s EBITDA increased by 4% to UAH 1.77 billion in the period, but its EBITDA margin decreased by 3.9 percentage points to 55.2%.
The company’s capital investments in the second quarter decreased by 28% to UAH 1.12 billion.
According to Turkcell, on September 9, the company completed the transfer of shares, as well as all rights and obligations in its subsidiaries LifeSell LLC, Global Bilgi LLC and Ukrtower LLC to DVL Telecom, one of the companies of the NJJ Holding group of French billionaire Xavier Niel. Turkcell is no longer a shareholder in these subsidiaries, the company said in its quarterly report.
On the closing date of the transaction, Turkcell received $524.3 million under the share purchase agreement.
Turkcell’s top managers, answering investors’ questions during the conference call, confirmed that the final sale price will be determined based on adjustments to be made at the closing of the transaction, based on the level of net cash/debt as per the financial statements to be prepared at the closing date.
Earlier it was reported that the NJJ consortium transferred $524.3 million to Turkcell and completed the acquisition of Datagroup-Volia and lifecell.
In January-June 2024, PJSC Ukrnafta received UAH 10.6 billion in net profit.
“The results were confirmed by the audit of Crowe Erfolg Ukraine, Crowe Audit & Accounting Ukraine,” the company said on Wednesday.
During this period, the company paid UAH 20.2 billion to the state budget in the form of taxes, duties, dividends on the state share and customs payments.
“In total, since the beginning of state management and the start of the new management at the end of 2022 and as of today, the company has received almost UAH 40 billion in profit,” said Sergiy Koretsky, Ukrnafta’s CEO.
“Ukrnafta is the largest oil producer in Ukraine and the operator of the national network of filling stations. In March 2024, the company took over the management of Glusco assets and operates 545 filling stations – 460 owned and 85 managed.
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 NAFTA 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. In November 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.
Ovostar Union, one of the leading producers of eggs and egg products in Ukraine, posted a net profit of $13.3 million in the first half of 2024, down 35.4% year-on-year, due to higher feed costs and falling prices for finished products.
According to the group’s report on the Warsaw Stock Exchange, its revenue for the first six months of this year fell by 26% year-on-year to $64.2 million, due to a 30% drop in the cost of eggs (year-on-year), dry and liquid egg products by 8% and 25%, respectively.
In particular, revenues from eggs fell to $39.86 million from $62.11 million, and pre-tax profit in this segment fell to $4.39 million from $8.66 million, while revenues from egg products decreased slightly to $24.35 million from $26.58 million, although the decline in pre-tax profit was greater – to $9.08 million from $12.22 million.
Also, sales in Ukraine decreased to $31.18 million from $40.76 million, and exports to $33.03 million from $47.93 million.
In January-June this year, Ovostar’s gross profit decreased by 29.3% to $19.1 million, operating profit by 43.8% to $11.3 million, and EBITDA by 41.0% to $12.8 million.
The weakening of the hryvnia also led to the fact that in the first half of this year, Ovostar’s total profit amounted to $6.46 million against $20.59 million in the same period last year.
It is noted that during the year, the total number of livestock increased from 7.3 million to 7.6 million, although the number of laying hens decreased from 6.5 million to 6.2 million, resulting in a 4% decrease in egg production to 706 million.
Against the backdrop of Russia’s full-scale military invasion of Ukraine and the overall unfavorable situation in the country’s economy, the management decided to suspend the investment program, but the company’s investments increased to $6.8 million in the reporting period from $5.2 million in the first half of last year.
“In the first half of 2024, the group started construction of two poultry houses for young poultry with a total budget of about $3.8 million, of which $1.8 million has already been spent as of the reporting date. The planned completion date is April 2025,” the report said.
The group also reported that its net debt jumped from $47.9 million to $72.4 million, but free cash flow increased by about the same amount – from $50.3 million to $74.4 million. In particular, over 12 months in Ukraine, they decreased to $22.7 million from $24.7 million, including the equivalent of $0.4 million in hryvnia from $7.6 million, in Latvia – to $10 million from $21.2 million, while in the UK, an increase to $40.31 million from $0.12 million was recorded.
As reported, Ovostar Union’s net profit for the first quarter of 2024 fell by 22.4% to $6.97 million, while revenue decreased by 24.6% to $35.67 million.
In mid-June 2011, the group’s holding company, Ovostar Union N.V., held an IPO of 25% of its shares on the WSE and raised $33.2 million. However, this year, the majority owners of the agricultural holding, CEO Boris Belikov and member of the Board of Directors Vitaliy Veresenko, together with Fairfax Financial Holding, accumulated 95.45% of the shares and bought out the remaining 4.55%, or 277,066 thousand shares, in a squeeze-out at a price of PLN70 per share (about $17.3 at the then exchange rate).
Astarta Agro Holding, the largest sugar producer in Ukraine, reduced its net profit by 13.9% in the first half of 2024 compared to the first half of 2023 to EUR47.11 million, according to the company’s report on the Warsaw Stock Exchange.
According to the report, consolidated revenue increased by 11.6% to EUR320.71 million, while gross profit grew by 0.5% to $126.63 million and EBITDA decreased by 11.7% to $85.83 million.
“The EBITDA margin was 27%, down 7 p.p. (percentage points) year-on-year due to falling prices and higher SG&A expenses,” the report states.
Taking into account the data for the first quarter, Astarta managed to improve its performance in the second quarter. As reported, in the first quarter of 2024, the agricultural holding reduced its net profit by 44.1% to EUR9.02 million, EBITDA by 24.5% to $28.62 million, and its consolidated revenue increased by 1.4% to EUR165.78 million.
It is noted that the main growth factor in the first half of the year was sugar production, which accounted for 40% of total revenue, or EUR128 million (+48% compared to last year), followed by crop production with 31%, or EUR99 million (-2% compared to last year). Soybean processing accounted for 18% of Astarta’s consolidated revenue, or EUR58 million (-18% y-o-y), while livestock production accounted for 8%, or EUR25 million (+20% y-o-y).
It is indicated that export sales increased to 67% of consolidated revenue or EUR215 million in the first half of this year against 55% in the first half of last year.
The main contribution to EBITDA was made by crop production – EUR44.26 million against EUR43.68 million in the first half of last year, while the sugar segment’s EBITDA fell to EUR12.20 million from EUR24.10 million a year earlier.
In livestock, EBITDA increased to EUR 14.55 million from EUR 9.48 million in the first quarter of last year, while in soybean processing it decreased to EUR 16.45 million from EUR 20.11 million.
It is noted that the operating cash flow increased by 67.7% to EUR116.4 mln in six months due to lower inventories.
Investments increased 2.1 times to EUR20.19 million, mainly in crop and sugar production.
Over the year, Astarta’s net debt decreased from EUR131.55 million to EUR95.86 million, and free cash flow increased from EUR20.96 million to EUR72.84 million.
It is noted that the abnormally hot weather without rain forced the agricultural holding to accelerate the harvesting of winter crops. Less favorable weather conditions also led to lower yields in 2024, however, in the western regions of the country there was more precipitation, winter crops yields were higher, and overall yields were higher than the average for Ukraine.
The gross harvest of winter wheat amounted to 5.3 t/ha (-16% y-o-y), which means a harvest of 260 thsd tonnes (-4% y-o-y). Rapeseed yields averaged 3.4 t/ha (-17% y/y), with a harvest of 40 thou tons (-29% y/y). Harvesting of late crops for 2024 is ongoing. Sowing of winter rapeseed for the 2025 harvest started in mid-August. The planned sowing area is 20 thou hectares compared to 12 thou hectares last year.
“Astarta reminded that this year’s corn acreage decreased three times compared to last year, to 6 thou hectares, and sunflower acreage decreased by 34%, to 18 thou hectares. At the same time, the area under soybeans increased by 27% to 70 thou hectares to maximize the supply of its own products for soybean processing, Astarta said.
The company added that the area under sugar beet remained virtually unchanged and amounted to 38 thou hectares (-1% y-o-y), while the area under organic crops remained at the same level – about 2 thou hectares.
“Astarta is a vertically integrated agro-industrial holding company operating in eight regions of Ukraine. It comprises six sugar factories, agricultural enterprises with a land bank of 220 thousand hectares and dairy farms with 22 thousand cattle, an oil extraction plant in Globyno (Poltava region), seven elevators and a biogas complex.
In 2023, the agricultural holding reduced its net profit by 5.0% to EUR 61.9 million, and its EBITDA decreased by 6.1% to EUR 145.77 million, while revenue increased by 21.3% to EUR 618.93 million.
