Business news from Ukraine

“Kernel” acquires 50,000-ton vessel for grain exports

“Kernel, one of Ukraine’s largest agricultural groups, has purchased a third vessel for grain exports with a carrying capacity of more than 50,000 tons, the agricultural holding’s press service reports on Facebook.

“We have purchased a new vessel Rotterdam Pearl V, capable of exporting more than 50 thousand tons of grain. Now our fleet already includes three vessels that can export about 100 thousand tons of grain and 20 thousand tons of sunflower oil per month,” the statement said.

The company added that it continues to invest in expanding maritime logistics capabilities for the Ukrainian agricultural industry.

“Our own fleet has been providing Ukrainian exports to the Mediterranean and North-East Atlantic countries for more than a year and allows us to manage costs along the entire logistics chain. The development of our own shipping, in particular, does not force us to fix tonnage from the market, which is unprofitable during the period of inflated freight rates during martial law,” the statement said.

Before the war, Kernel Agro Holding was the world’s leading producer of sunflower oil (about 7% of global production) and its exports (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 company ended the previous year 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.

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In Bosphorus Strait, a vessel with grain from Ukraine was refloated

The vessel Lady Zehma with grain from Ukraine was refloated in the Bosphorus Strait, the local publication Maritime Executive reports.
According to reports, after a 173-meter dry cargo ship with 3,000 tons of Ukrainian corn got stuck in the strait, rescue tugs were sent to help, which “quickly launched it into the water.”
“As of Thursday evening, the ship was moving at a slow pace, accompanied by several tugboats,” the publication said.
On August 30, the UN reported that the Joint Coordinating Center (JCC) had given permission for six ships, including the Lady Zehma ship carrying 3,000 tons of corn, to leave Ukrainian ports on Tuesday as part of an Istanbul food deal.
On July 22, in Istanbul, with the participation of the UN, Russia, Turkey and Ukraine, two documents were signed on the creation of a corridor for the export of grain from three Ukrainian ports – Chernomorsk, Odessa and Yuzhny.

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Turkish vessel Polarnet with 12,000 tons of corn from Kernel arrived at port of Derince

The Turkish vessel Polarnet, which left the port of Chornomorsk (Odessa region) on August 5 with 12,000 tons of corn from the Kernel agricultural holding, arrived at the Turkish port of Derince on August 8.
Kernel completed one of the most important missions – the first ship with Ukrainian grain arrived at its destination. The shipment was carried out as part of the initiative for the safe transportation of grain and food from Ukrainian ports,” the group of companies wrote on Facebook on Tuesday.
It is specified that the ship was loaded with corn at the Transbulkterminal grain terminal in Chornomorsk, which is part of Kernel. In the 2020/2021 marketing year (MY, July-June), the terminal handled 7.6 million tons of grain crops, which is 22% more than in MY 2019/2020, and became the largest in the country in terms of transshipment of agricultural products.
Agropromholding emphasized that Ukrainian agricultural exporters remain key suppliers of foreign exchange earnings to Ukraine, which is an important positive factor for the economy of the warring country.
“If we manage to maintain the trend and increase exports, farmers will not have to reduce the area under crops, and Ukraine will feel a deficit in state budget revenues,” Kernel summed up in the message.
Before the war, Kernel ranked first in the world in the production of sunflower oil (about 7% of world production) and its export (about 12%), and was also the largest producer and seller of bottled sunflower oil in Ukraine. In addition, the company was engaged in the cultivation of other agricultural products and their sale.
Its largest co-owner through Namsen Ltd. is Ukrainian businessman Andrey Verevsky with a share of 41.3%.
The agricultural holding in fiscal year 2021 (FY, July 2020 – June 2021), increased its net profit by 4.3 times compared to FY 2020 – up to $513 million, its EBITDA increased 2.1 times – up to $929 million, revenue – by 38%, to $5.65 billion.

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