“In 2023, Kernel, one of the largest Ukrainian agro-industrial groups, strengthened its position as a port operator by acquiring a tanker, two bulk carriers and terminals for transshipment of sunflower oil in Odesa’s Pivdennyi and Chornomorsk ports and on the Danube River, said Yevhen Osypov, CEO of the agricultural holding.
“The agricultural holding has long been a port operator. We have several terminals through which we export. Over the past year, we have invested and purchased terminals for transshipment of sunflower oil. We did not have self-propelled terminals before. We used the services of partners,” he said at the Business Breakfast with Forbes Ukraine on Wednesday.
Osipov noted that the bulk of the agricultural holding’s terminals were concentrated in Mykolaiv. After losing Mykolaiv ports to the full-scale war, Kernel had to invest in new supply chains for sunflower oil to the global market and acquired terminals in Pivdennyi and Chornomorsk ports and on the Danube River to ensure exports. The agricultural holding’s SEO called the acquisition of vessels one of the elements of Kernel’s sustainable development.
“At some stage, we did not understand whether the corridor would work or not (the Black Sea Grain Initiative – IF-U), and the volumes (of agricultural products – IF-U) need to be exported. We realized that we need to invest in the fleet to ensure the possibility of export,” he said.
Mr. Osipov confirmed that Kernel currently owns one tanker and two bulk carriers, which provide the agricultural holding with 30% of sunflower oil and 20% of bulk cargo exports.
The group is currently exploring this area and has formed a new team to manage the fleet.
“These are slightly different competencies that the agricultural holding did not have before. This business is very competitive and not as simple as it seems at first glance,” admitted the SEO and added that the existing military bonus makes this business efficient.
Mr. Osipov noted that due to military risks, Kernel has not been buying new vessels and is considering investing in newer ones, although not this year – first it intends to learn how to balance with the existing fleet on the market. Currently, the agricultural holding’s fleet operates on a daily basis, delivering its agricultural products to Romania, the Mediterranean basin and Northern Europe, where it is gaining experience in shipping.
Prior to the war, Kernel was the world’s largest producer of sunflower oil (about 7% of global production) and a major exporter (about 12%). It is one of the largest producers and sellers of bottled oil in Ukraine. In addition, it is engaged in the cultivation and sale of agricultural products.
Kernel’s net profit for FY2023 amounted to $299 million, while the previous year it ended with a net loss of $41 million. The agricultural holding’s revenue for FY2023 decreased by 35% to $3.455 billion, but EBITDA increased 2.5 times to $544 million.
Singapore’s Dachex Shipping Pte. Ltd became the winner of the third stage of the procedure for selecting the customer for the processing of customer-supplied raw materials for JSC Odesa Port-Side Chemical Plant.
According to a statement on the plant’s website, the company offered the best additional conditions for cooperation, namely: the conclusion of a financing agreement (interest-free loan) for up to $20 million for a period of two years.
As reported, on April 19, 2021, Odesa Port-Side Chemical Plant suspended the procedure for selecting a “customer” at the claim of trader United Energy LLC, part of the Privat Group. At the same time, the plant said that it would appeal this court ruling in order to return to making a decision on the winner of the selection procedure or holding the third stage – negotiations.
First Deputy Head of the State Property Fund (SPF) Denys Kudin told Interfax-Ukraine that the other day the court sided with the enterprise.
Before receiving a court verdict on a pause in the competition, the plant held an electronic tender for the tolling processing of raw materials and shipment of products that day, in which ten companies took part.
ccording to the protocol of the exchange, all 10 participants in the auction offered the lowest possible “zero” coefficient of limit, which is part of the formula for calculating the “additional remuneration.” Accordingly, at the next stage, the plant shall negotiate with all bidders to determine the winner.
Ukrspyrt has resumed shipment of alcohol, terminated from July 1.
“The vodka crisis is canceled: the government has agreed on a temporary order for shipment of alcohol. State enterprise Ukrspyrt is working as normal and fulfilling contractual obligations,” the state-owned enterprise told Interfax-Ukraine.
The Cabinet of Ministers, in particular, agreed on a temporary order for shipment of alcohol until October 1, 2019.
“During this time, alcohol producers and consumers must bring accounting systems in accordance with the requirements of the Tax Code,” Ukrspyrt said.
As reported, the Cabinet of Ministers at a meeting on July 10 approved a “roadmap” of measures to resume the supply of alcohol suspended from July 1.
The document provides for the use of the metering devices already installed and registered in the relevant state register until the settlement of the issue of establishing and registering new electronic flow meters for ethyl alcohol by distilleries.
