Business news from Ukraine

Business news from Ukraine

“Ukrgraphite” has received UAH 83.5 mln profit in first half of year

PJSC “Ukrainian Graphite” (“Ukrgraphite”, Zaporizhzhya) according to the results of work in January-June of the current year received net profit in the amount of UAH 83.556 mln, whereas it finished the same period of the last year with net loss of UAH 22.135 mln.

According to the company’s interim report, the company increased its income by 22.6% to UAH 938.909 mln in the first half of the year.

The company’s retained earnings at the end of the first half of this year amounted to UAH 3 billion 789.045 million.

As reported, “Ukrgrafit” in January-March-2023 increased net profit 42.9 times compared to the same period of the previous year – up to UAH 70.723 million, but reduced net income by 11% to UAH 437.326 million.

“Ukrgrafit” in 2022 reduced net income by 41.4% year-on-year to UAH 1 billion 545.562 million, received a net profit of UAH 52.584 million, while it ended 2021 with a net loss of UAH 317.539 million.

“Ukrgraphit” is Ukraine’s leading producer of graphitized electrodes for electric steelmaking, ore-thermal and other types of electric furnaces, commercial carbon masses for Soderberg electrodes, carbon-based lining materials for enterprises of metallurgical, machine-building, chemical and other industrial complexes.

According to the National Depository of Ukraine (NDU) as of the fourth quarter of 2022, Intergraphite Holdings Company Limited (Bermuda) owns 23.9841% of PJSC, C6 Safe Group Limited (Cyprus) – 72.0394%.

Authorized capital of Private JSC is UAH 233.959 mln, nominal value of 1 share is UAH 3.35.

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FUIB’s net profit increased more than 16 times in January-June this year

The net profit of First Ukrainian International Bank (FUIB, Kyiv) for January-June this year amounted to UAH 3 billion 676.54 million, which is 16.8 times higher than in the same period of 2022, according to the bank’s report in the information disclosure system of the National Securities and Stock Market Commission (NSSMC).

According to the report, FUIB’s net interest income for January-June 2023 increased 4.3 times to UAH 5 billion 743.88 million.

Net fee and commission income for six months of the current year increased by 31.5% to UAH 1 billion 93.01 million, the report says.

It is stated that in January-June this year FUIB disbanded UAH 341.80 million of reserves, while in the same period last year it increased them by UAH 4 billion 267.11 million.

The bank’s total profit for the first half of 2023 reached UAH 4 billion 19.74 million against UAH 78.61 million in the first half of last year.

According to the report, in January-June this year, the bank’s assets grew by UAH 13 billion 736.74 million, reaching UAH 125 billion 710.96 million.

Such growth is explained by a significant increase in investments in securities – from UAH 12 billion 586.77 million to UAH 45 billion 547.69 million, while cash and funds with the NBU, on the contrary, decreased by 1.7 times – to UAH 27 billion 151.01 million.

At the same time, loans and advances to customers increased from UAH 43.77 billion to UAH 44.78 billion, while debts of other banks increased by UAH 0.64 billion to UAH 41.27 billion.

FUIB’s customer funds increased from UAH 90 billion 38 million to UAH 104 billion 77 million in the first half of 2023, while the bank’s capital increased from UAH 11 billion 76 million to UAH 15 billion 71 million, including retained earnings from UAH 3 billion 82 million to UAH 7 billion 502 million.

FUIB was founded in 1991, according to its website, it serves about 1.5 million customers and is owned by Rinat Akhmetov. According to the NBU data as of June 1, FUIB was among the top ten largest banks in the country, ranking 8th among 65 operating Ukrainian banks in terms of assets (UAH 131.96 billion). As of the end of June, the bank’s network included 5 regional branches and 221 outlets, compared to 213 outlets at the beginning of the year.

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Net profit of OTP Bank in Ukraine for January-June amounted to almost UAH 3 bln

Net profit of OTP Bank for January-June 2023 amounted to UAH 2 billion 854.46 million compared to net loss of UAH 783.06 million in January-June 2022, according to the unconsolidated semi-annual report of the bank.

According to it, in particular, net profit in the second quarter of this year reached UAH 1 billion 395.28 million, which is 27.1 times higher than the net profit for the same period last year.

It is indicated that net interest income for the first half of the year increased by 46.3% to UAH 4 billion 306.59 million, including in the second quarter the growth amounted to 42.5% to UAH 2 billion 154.61 million.

Meanwhile, net commission income in January-June this year increased by 35.4% to UAH 612.064 million, including in the second quarter – by 55.7% to UAH 290.32 million.

A significant contribution to the improvement of the financial result was made by the reduction of the loss from the reduction of utility in the first half of this year to UAH 314.08 million, while for the same period last year this figure amounted to UAH 3 billion 573.13 million.

Specifically, for the second quarter of 2023, the loss from utility curtailment narrowed to UAH 170.81m compared to UAH 1 billion 364.51m in the second quarter of 2022.

The bank points out that its total profit for the first half of this year reached UAH 3 billion 247.74 million against a loss of UAH 872.35 million for the first half of last year, including a total profit of UAH 1 billion 772.90 million in the second quarter-2023 against a loss of UAH 162.81 million in the second quarter-2022.

According to the report, in January-June this year, the bank’s assets grew by UAH 1.92 billion, reaching UAH 92.93 billion as of June 30.

Such growth is explained by the increase in cash and funds with the NBU from UAH 4.75 billion to UAH 9.67 billion and investments in securities – from UAH 32.85 billion to UAH 37.37 billion, while loans and advances to clients decreased from UAH 29.92 billion to UAH 23.91 billion, and debts of other banks – by UAH 1.2 billion to UAH 20.51 billion.

Customer funds of OTP Bank decreased for the first half of 2023 from UAH 77.73 billion to UAH 76.19 billion, meanwhile the bank’s capital increased from UAH 11.63 billion to UAH 14.87 billion, including retained earnings – from UAH 3.77 billion to UAH 6.62 billion.

OTP Bank, a 100% subsidiary of the Hungarian OTR Bank Plc, was the eighth among 65 Ukrainian banks in terms of total assets (UAH 103.327 billion) at the beginning of June this year. The bank has a network of 72 branches in Ukraine.

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“Dneprometiz” has received UAH 17.2 mln of profit

PJSC “Dniprometiz” (Dnipro) of Ukrainian businessman Serhiy Tihipko following the results of work in January-June this year received a net profit of UAH 17.253 million, while the same period last year ended with a net loss of UAH 12.346 million.

According to the company’s interim report, in the first half of 2023, net income increased by 15.4% to UAH 1 billion 426.222 million.

At the same time, the company’s retained earnings by the end of June 2023 amounted to UAH 257.336 million.

As reported, “Dneprometiz” at the end of January-March of this year received a net profit of UAH 17.581 million, while ended the same period last year with a net loss of UAH 8.645 million. For the first quarter of 2023 net income increased by 54% to UAH 683.802 million.

“Dneprometiz” in 2022 decreased net profit six times compared to the previous year – to 25.572 million UAH, net income increased by 1.1% – to 2 billion 474.397 million UAH.

“Dneprometiz” produces hardware products from low-carbon steels. The capacity of the enterprise is 120 thousand tons of products per year.

According to the NDU data for the first quarter of 2023, T.A.S. Overseas Investments Limited (Cyprus) owns 98.6578% of Dneprometiz shares.

The authorized capital of Dniprometiz PJSC is UAH 83.480 mln, the nominal value of a share is UAH 68.08.

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“Ukrtelecom” gained EBITDA profit of over UAH 700 mln

“Ukrtelecom, Ukraine’s largest fixed-line operator, posted an EBITDA profit of more than UAH 700 million in January-June 2023, while its EBITDA margin rose to 27.8%, the company said on Friday.

“Even in the difficult conditions of operating during a full-scale war, Ukrtelecom demonstrates a stable high level of operational efficiency… Based on its results in the first half of the year, Ukrtelecom generated total revenue of more than UAH 2.5 billion,” the telecom operator said in a press release.

A full quarterly report is not yet available, but for the first half of 2022 Ukrtelecom reported an EBITDA margin of 24.3%, which, given the reported total revenue of UAH 2.9 billion, allows the company to estimate EBITDA for that period at UAH 705 million and talk about maintaining this figure in the first half of 2023, despite a decline in total revenue by about 14%.

In the first half of pre-war 2021, the company generated UAH 3.4 billion in total revenue (up 10%), its EBITDA amounted to UAH 1.1 billion (+29%), and its EBITDA margin was 31.3% (+4.5 percentage points).

The press release notes that Ukrtelecom continues to operate, providing access to Internet services at 88% of the number of settlements covered by the operator’s network prior to the full-scale Russian invasion. At the same time, the number of optical Internet subscribers increased by 10% year-on-year to 320,000.

“In the conditions of martial law, the company continues to meet the demand for optical internet connection, accordingly the subscriber base of users connected via optics is increasing,” it said.

In 2023, Ukrtelecom has already built 2.023 thousand km of fiber-optic lines. 80 medical and 82 educational institutions and almost 20 business objects are connected to high-speed optical Internet. In general, as of the beginning of July, more than 1.7 thousand educational and 1.28 thousand medical institutions, as well as 550 territorial communities have fiber optics from Ukrtelecom.

“Despite the difficult economic conditions, Ukrtelecom continues to effectively dispose of the property that is released due to the modernization of technological infrastructure,” the company stressed.

Revenues for the first half of the year from commercial lease of property amounted to UAH 230 million, the statement said.

According to preliminary data, the direct losses of the company from the buildings destroyed in the occupation troops of the Russian Federation, lost equipment, telecom networks and other assets in the temporarily occupied territories amount to about 700 million UAH, and in general, the total devastating consequences of Russian aggression for “Ukrtelecom” are estimated at 2.8 billion UAH, which is mainly due to the economic depreciation of operating assets.

“During the full-scale war, the company lost a number of real estate in temporarily occupied settlements, quite a few buildings are damaged and destroyed by the enemy,” Ukrtelecom pointed out.

The company also reports on reorganization, within the framework of which, in order to increase the efficiency of telecom business, generation of new opportunities for its development, as well as consolidation of responsibility for telecom revenues, a commercial directorate was created, which united the directions of development of corporate and mass segments and inter-operator telecom business.

“The company is implementing new important projects and decisions regarding business improvement and development… The reorganization will unify and increase the efficiency of business processes, introduce new interesting products, as well as methods of sales organization and customer service,” the release said.

It is also said that Ukrtelecom fulfills its obligations to the state, having paid over UAH 750 mln of taxes to budgets of all levels in January-June 2023.

In addition, the company implemented another project on large-scale assistance to the AFU – more than 20 units of the Defense Forces were provided with almost 2.5 thousand special hardware and software. During the full-scale war, the company sent dozens of UAVs, including Valkyrie and Leleka unmanned aerial systems, to the defenders as part of the Steel Front initiative of businessman Rinat Akhmetov. About 65 million hryvnias of financial aid has already been directed to the needs of the defenders, more than 230 cars from the corporate fleet have been handed over.

More than 370 employees of Ukrtelecom are defending the Ukrainian soil in the ranks of the AFU.

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“Stalkanat” reduced profit by more than quarter

PJSC “Production Association “Stalkanat” (Odessa) following the results of work in the first half of the current year reduced net profit by 28.7% compared to the same period last year – up to UAH 164.360 mln.

According to the company’s interim report, net income for this period decreased by 6.9% to UAH 1 billion 574.849 million.

Retained earnings at the end of June 2023 amounted to UAH 340.116 million.

As reported, “Stalkanat” in January-March this year increased net profit by 2.2 times compared to the same period last year – to UAH 77.304 million, reducing net income by 3.2% – to UAH 701.047 million.

“Stalkanat” in 2022 received a net profit of 325.073 million UAH, while 2021 ended with a net loss of 309 thousand UAH. Net income in 2022 amounted to UAH 3 billion 227.799 million, while in 2021 it was not, as the company at that time was in the process of creation due to the spin-off from PJSC “Stalkanat-Silur”.

The average number of employees of the enterprise for 2022 – 916 people, for 2021 – 16 people.

General meeting of shareholders held on September 3, 2021 decided to separate from PJSC PO “Stalkanat-Silur” and create a new company – PJSC “Stalkanat” with the transfer of part of property, rights and obligations to it according to the approved distribution balance sheet. The assets of PJSC “Stalkanat” were based on the distribution balance sheet and the acceptance act dated December 31, 2021.

The Company was incorporated on December 6, 2021.

PJSC PO Stalkanat-Silur (Odessa) previously had two branches – in Odessa and in Khartsyzsk, Donetsk region at NKT. On December 1, 2016, the management of the company officially notified about the shutdown of the company’s branch in Khartsyzsk – the relevant announcement was published in the newspaper “Uryadovyi Kurier”. Later, the management of PJSC PO Stalkanat-Silur announced the seizure of the company’s branch in Khartsyzsk at NKT, sent a corresponding statement to the National Police.

According to the company’s data as of the end of 2022, David Nemirovsky (Ukraine) holds 50.0001% of shares of PJSC “Stalkanat”, Anton Mikhalenko – 23.7%, Edery Liron (both – Israel) – 23.1%, Vitaliy Dubovich (Ukraine) – 3.1999%.

The authorized capital of PJSC “Stalkanat” is UAH 17.736 mln, nominal value of one share is UAH 0.17.

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