Business news from Ukraine


Electrotyazhmash together with its main partner Turboatom (Kharkiv) sees an opportunity to increase the order portfolio for JSC Ukrhydroenergo, which operates all major hydroelectric power stations in the Ukrainian sections of the Dnipro and Dniester Rivers, by two to three times in the next two years, Viktor Busko, who was suspended at his request from performing the duties of director general of the enterprise, has said.
“At present, together with the main partner Turboatom, a project is underway to modernize Ukrhydroenergo’s turbo generating equipment, in the future it is planned to jointly participate in no less large projects at Ukrainian nuclear power plants. The prospect of working with Ukrhydroenergo is very serious. We see an opportunity to increase the portfolio of orders by two to three times over the next two years,” Busko told Interfax-Ukraine.
He recalled that such large projects are exhibited according to international procurement procedures and attract all the world’s top manufacturers of generators and turbines.
“However, we are confident in our abilities and Electrotyazhmash has every chance not only to compete, but also to receive these orders, subject to careful preparation of documents and a very balanced approach to pricing its services. Our products are not inferior in quality, while there’s not a single reason why our price should be higher than the Austrian or American,” he said.
He said that there were debts for the delivered products in the Electrotyazhmash-Turboatom-Ukrhydroenergo supply chain.

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JSC Turboatom (Kharkiv) in April plans to deliver a first modernized rotor under a contract to modernize high- and medium-press cylinders of reactor two of Yuzhnoukrainsk nuclear power plant for the total amount of UAH 300 million.
According to a report on Turboatom’s website, the contract was signed on February 25 by Turboatom Director General Viktor Subotin and Director of the Atomkomplekt division of National Nuclear Generating Company Energoatom Ruslan Zhmudsky.
According to Subotin, the signed agreement is the first contract to modernize the flow section of this type of turbine in Ukraine. The company has already performed similar work for customers outside the country, including at reactor five of Kozloduy NPP (Bulgaria).
“An entire program to modernize the flow sections of the reactors of Ukraine, both of our turbines and of Russian ones, is ahead,” the press service said, citing Subotin.
In turn, Zhmudsky said that the signed contract is part of the approved five-year modernization program.
“The program is designed until 2024, and in the situation that has developed now (namely, lack of funding for the construction of new reactors), the modernization of existing equipment will give us up to 10% of additional capacity,” he said.
According to Deputy Director General of Yuzhnoukrainsk NPP Andriy Petruk, the plant has been using Turboatom’s equipment for many years.
“The most important thing for us is the import substitution program, with which Turboatom helps us. The modernization, the contract for which has been signed, will increase the electric power by approximately 100 MW,” he said.
According to Turboatom General Designer Yevhen Levchenko, the five-year program provides for the modernization of seven more of the same reactors: one at Yuzhnoukrainsk NPP and six at Zaporizhia NPP.
“The next step is the modernization not of our turbines, but of the turbines manufactured by Russia’s Power Machines,” he added.

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The Cabinet of Ministers of Ukraine on December 27 plans to approve the updated financial plan of JSC Turboatom (Kharkiv) for 2019 with a net profit of UAH 827.68 million, which is 8.3% more than in 2018, according to the documents available to the Interfax-Ukraine agency. According to them, one of the goals of making corrections to the financial plan is to pay UAH 993.63 million to the state this year, including UAH 517.43 million as dividends for 2018.
Other indicators of the updated draft financial plan are not yet available to the agency.
Last year, the Cabinet of Ministers approved Turboatom’s financial plan for 2019 with a net profit of UAH 798.33 million and a revenue of UAH 2.737 billion.
In 2018, the company increased its net profit by 7.6%, to UAH 764.24 million, and its net income grew by 10%, to UAH 2.615 billion.
The shareholders of Turboatom at a meeting on April 17 decided to send 50% of net profit for payment of dividends for 2018, in particular UAH 382.1 million, including UAH 287.5 million to the state (as the owner of more than 75%). The Cabinet of Ministers then increased the norm of dividend payment to 90%. The director of the enterprise, Viktor Subotin, and Kharkiv Regional Council opposed the decision, however, the Ministry of Finance repeatedly insisted on the payment of increased dividends.


State-owned enterprise National Nuclear Generating Company Energoatom and JSC Turboatom (Kharkiv) signed the five year (2020-2024) program on modernizing equipment of Ukrainian nuclear power plants (NPPs) on Tuesday.
According to a press release of Energoatom, the program involves the replacement of eight turbine condensers of nuclear power reactors, including four Russian-made condensers. After replacing the condensers, the total increase in power of reactors will be about 400 MW.
The document also provides for the modernization of flowing parts of turbine cylinders with a capacity of 200 MW and 1000 MW, including five turbines with a capacity of 1000 MW as part of import substitution. Modernization includes the replacement of rotor blades on existing rotors and diaphragms, which will increase the turbine’s power and its efficiency.
It is also planned to upgrade the high-pressure cylinders of the turbines of the Zaporizhia NPP, starting in 2020. Modernization of turbines will increase the capacity and efficiency of existing reactors of Ukrainian NPPs by 10%, which will provide a power increase of 70-100 MW at each reactor.
In addition, on Tuesday in Enerhodar (Zaporizhia region), an agreement was signed between Atomkomplekt (a separate division of Energoatom) and Turboatom for the manufacture and supply of a block-modular condenser for replacing the condenser of the K K-1000-60/1500 turbine at reactor five of Zaporizhia NPP in April 2020.
The parties also discussed a long-term repair program for the replacement of used spare parts.
“Four years ago, we gave a new powerful start to our cooperation, which is not only servicing the turbine park, but also the replacement and modernization of equipment. This will allow us to increase and improve the efficiency of nuclear power plants, to increase the generation of electric energy, which is important in conditions a new market, when every additional kilowatt-hour produced gives additional income,” Energoatom President Yuriy Nedashkovsky said.
According to the CEO of Turboatom Victor Subbotin, the volume of modernization at Energoatom for five years will exceed UAH 6 billion, which is a significant contribution to the utilization of production capacities and personnel of the enterprise.

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JSC Turboatom (Kharkiv), the largest manufacturer of turbine equipment in Ukraine, 75.2% shares of which belong to the state, tentatively saw UAH 764.235 million in net profit in 2018, which is 7.6% more than in 2017.
Thus, Turboatom’s net profit target being UAH 763.166 million was slightly exceeded.
According to an agenda of the general meeting of the company’s shareholders scheduled for April 17, 2019 and posted in the information disclosure system of the National Commission for Securities and the Stock Market, retained earnings as of January 1, 2019 totaled UAH 3.629 billion.
The issue of distributing net profit for 2018 and the approval of annual dividends was put on the agenda of the meeting.
The draft minutes of the meeting has several options for profit distribution, in particular, to send 90% of net profit to pay dividends (UAH 687.75 million) and 10% to cover expenses foreseen in the financial plan for 2019 or to send 80% and 20%, 75% and 25% and 50% each respectively.
According to the report, in 2018, Turboatom increased current liabilities by 11%, to UAH 1.715 billion and noncurrent liabilities fell by 17.8%, to UAH 253.07 million.
Total receivables remained almost unchanged, being UAH 1.457 billion. Assets grew by 4.6%, to UAH 7.555 billion. Net worth as of early 2019 accounted for UAH 5.587 billion, including UAH 105.62 million of the charter capital.
The financial plan of Turboatom for 2019 foresees net profit to be UAH 798.3 million and net revenue UAH 2.737 billion.
Turboatom is the sole producer of turbine equipment in Ukraine for hydro, heat and nuclear electricity stations. The enterprise supplies its products to 45 countries in Europe, Asia, Americas and Africa.

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Kharkiv-based JSC Turboatom and Westinghouse have extended a memorandum of understanding in the nuclear energy sphere for one year.
The press service of National Nuclear Generating Company Energoatom reported that the document was signed on November 7, 2018 by Turboatom Director General Viktor Subotin, Westinghouse Vice President and Managing Director Aziz Dag and Energoatom President Yuriy Nedashkovsky during the international fuel and energy forum held in Kyiv.
“The memorandum of understanding with Turboatom includes cooperation under the Ukraine-EU Energy Bridge Project. According to the memorandum, Turboatom will provide products and services for the turbine part of the project. Yesterday, the expansion of the current memorandum for another year was signed,” Dag told Interfax-Ukraine.
As reported, Westinghouse within cooperation with Turboatom continues to discuss preparations for the implementation of programs to increase the installed capacity of VVER power units and the capability utilization index, while activation of cooperation is possible when launching the Ukraine-EU Energy Bridge Project.
The government decided to implement the Ukraine-EU Energy Bridge pilot project in June 2015. The project envisages organizing the transmission of power from reactor two of the Khmelnytsky NPP to the EU power grid. The funds received from electricity exports from this reactor are planned to be used to finance the construction of reactors three and four of the Khmelnytsky NPP.
A consortium of companies, consisting of Westinghouse Electric Sweden AB, Polenergia International S.àr.l. and EDF Trading Limited, announced their intention to participate in the project of arranging the Ukraine-EU energy bridge.

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