Business news from Ukraine

Ukraine will increase soybean production by record 19%

In 2024, the production of oilseeds in Ukraine will increase by 19% compared to 2023 to 2.3 mln ha, which will be a record for the industry, APK-Inform news agency reported based on the results of the survey among farmers.

According to the survey, conducted in February-March 2024, 82% of the respondents, who grow soybeans, plan to keep the area under soybeans unchanged, and 16% intend to increase it. The increase will be due to the reduction of the area under winter crops, as well as sunflower or other spring crops.

The soybean area in 2024 may increase to 2.3 mln ha (+19% by 2023), which will be a new record for the industry. Previously, the maximum for this crop was 2.2 mln hectares in 2015, analysts predict.

They also expect the production of soybeans in Ukraine to reach a record level, which, according to preliminary estimates, could reach 6 mln tons, which is 17% higher than last year.

At the same time, according to experts, the area under sunflower is not likely to change significantly: 87% of the respondents who grow the crop plan to keep the area under it unchanged. Those who plan to reduce or increase the area under sunflower mostly reported that it will be at the expense of rapeseed.

“Our estimate of the sunflower acreage in 2024 is still 5.8 mln ha, which is almost at the level of 2023. Under favorable weather conditions, the oilseed harvest could reach 13.9 mln tonnes (+1% compared to 2023), which is still lower than the pre-war figure,” the analysts emphasized.

The area under rapeseed in 2024 is likely to decrease due to the dry autumn, which led some farmers to abandon the winter oilseed planting.

In the survey, 51% of respondents reported that winter rapeseed crops are in good or excellent condition, 43% – in satisfactory condition, and 5% – in poor condition.

The area under spring rapeseed may also increase in 2024 to the record level due to the price attractiveness of this oilseed, but the total area under winter and spring rapeseed, according to APK-Inform preliminary estimates, will decrease by 6%. This figure will still remain quite high compared to previous years, amounting to about 1.4 mln ha. The harvest of this oilseed may decline by 9% in 2024, to 4.2 mln tonnes, APK-Inform summarized.

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IMC completes corn harvesting with record yield of 12.4 tons/ha

IMC Agro Holding has completed the harvesting of corn in 2023 and achieved a record yield of 12.4 tons/ha, which is 1.3 tons/ha higher than the previous record set in 2018, said Alex Lissitsa, SEO of the agricultural holding.

“A total of 574 thousand tons were harvested from an area of 46.3 thousand hectares, with an average corn yield of 12.4 tons/ha, a record for all years of the company’s operations, which is 1.3 tons/ha higher than the previous record set in 2018,” he wrote on Facebook.

IMC is an integrated group of companies operating in Sumy, Poltava and Chernihiv regions (north and center of Ukraine). It controls 120.3 thousand hectares (120.0 thousand hectares under cultivation). As of September 30, 2023, the group operated in two segments: crop production and elevators and warehouses.

The agroholding’s net loss in 2022 amounted to $1.1 million against a net profit of $78.7 million a year earlier, with a 37.3% decrease in revenue to $114 million. EBITDA decreased threefold to $36.2 mln.

For the 2024 harvest, IMC sowed winter wheat on 20.3 thou hectares.

In the first nine months of 2023, IMC posted a net loss of $2.25 million, compared to $4.67 million in net profit for the same period in 2022. The agroholding’s revenue increased by 59.8% to $98.78 million, including exports, which increased by 24.4% to $70.23 million. A significant increase in production costs – by 55.6% to $92.4 million – led to a decrease in gross profit by 33.3% to $29.89 million. EBITDA in the first nine months of 2023 amounted to $13.85 million, which is 2.7 times less than in the first nine months of 2022. The report notes that the reason for the decline was the decline in harvest prices in 2023.

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Record number of electric cars imported to Ukraine in 2023

A record number of electric cars – more than 37 thousand – were imported to Ukraine in 2023. This is 4 times more than in 2021. The most popular electric car brands are Volkswagen, Tesla, and Nissan. And Lviv region is the leader in the number of registrations of such cars.

A record 37,953 electric cars were imported to Ukraine in 2023. This is 4 times more than in 2021, when 8,996 electric cars were imported.

In total, electric cars accounted for 10% of the total number of cars imported to Ukraine in 2023. For comparison, in 2021, the share of electric cars was only 1.2%.

The largest number of imported electric vehicles was registered in Lviv region – 5,133 cars. Kyiv is in second place with 4,913 electric vehicles, and Odesa region is in third place with 3,412 electric cars registered there.

The most popular electric car brands in Ukraine in 2023 were Volkswagen, Tesla, Nissan, Renault, and Honda.

Nissan Leaf has been the most popular electric car model for 4 years in a row. More than 5 thousand of these cars were imported to Ukraine last year. Volkswagen ID.4 is in second place in terms of demand – 3,770 cars. Tesla Model 3 rounds out the top three with 3,291 electric cars.

The oldest electric car imported to Ukraine in 2023 was a Citroen Saxo made in 2000.

Record number of electric cars imported to Ukraine in 2023 – Opendatabot

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Ukraine has set record for rapeseed oil exports

In the first half of 2023-2024 marketing year (MY, July-December), Ukraine set the record for rapeseed oil exports – 356 thsd tonnes, up six times compared to the same period last year, APK-Inform news agency reported.

“The significant increase in the rate and volume of exports of this product in the current season was primarily due to the high demand for rapeseed oil on the world market amid attractive prices. Difficulties with sunflower procurement during the off-season also encouraged Ukrainian mills to increase rapeseed processing,” the analysts explained.

According to their information, the main volumes of Ukrainian rapeseed oil shipments during six months of 2023-2024 MY were to the EU countries, where 54% of Ukrainian rapeseed oil was supplied, and China – 31%.

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Carnival cruise line has received record revenue

The world’s largest cruise operator Carnival Corp. earned record revenues in the fourth quarter of fiscal year 2023, but ended the period with a slight loss.

According to the company’s press release, the net loss in September-November amounted to $48 million, or $0.04 per share, compared to $1.6 billion, or $1.27 per share, in the same period last year. Adjusted loss decreased to 7 cents from 85 cents per share.

Adjusted EBITDA was positive and amounted to $946 million against minus $96 million a year earlier.

Revenue reached a record $5.397 billion, up from $3.839 billion in the fourth quarter of FY2022.

Analysts on average estimated an adjusted loss of 13 cents per share on revenue of $5.3 billion, according to FactSet.

Revenue from ticket sales in the fourth fiscal quarter increased by 55% to $3.51 billion, and from onboard sales by 20% to $1.886 billion.

For the entire fiscal year 2023, Carnival also received record revenues of $21.593 billion, up from $12.168 billion a year earlier. Adjusted EBITDA amounted to plus $4.23 billion versus minus $1.68 billion a year earlier, adjusted net profit – $1 million versus a loss of $5.51 billion in FY2022.

In FY2024, the company forecasts adjusted EBITDA of $5.6 billion (including about $800 million in the first quarter) and adjusted net income of $1.2 billion (including a loss of $280 million in the first quarter).

The company’s share price is up 3.5% in Thursday trading.

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Dneprovagonmash showed record profit in 2023

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.

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