KYIV. July 4 (Interfax-Ukraine) – United Mining-Chemical Company managing Vilnohirsk state mining and metallurgical plant (Dnipropetrovsk region) and Irshansk state mining and processing plant (Zhytomyr region) in January-March 2016 saw a 3.2-fold rise in net profit year-over-year, to almost UAH 144 million.
The enterprise said in a press release on Friday that in Q1 2016 pretax profit of UAH 177.3 million was recorded, while in Q1 2015 it was UAH 44.866 million.
Net sales revenue over the period exceeded UAH 400 million and earnings before interest, tax, depreciation and amortization (EBITDA) totaled UAH 168.9 million.
“The positive results were achieved thanks to boosting production and sales compared to the first quarter of last year. Nevertheless, the fact that the company launched production only in February 2015 should be taken into account. The last year period is the base for comparing financial indicators,” First Deputy Director General Oleksandr Hladushko said.
Net revenue in Q1 2015 was UAH 215 million, net profit – UAH 44.9 million and EBITDA – UAH 65.7 million.
Hladushko said that the company is far from reaching the potentially possible production and sales volumes. Products worth around UAH 413 million are still at the company’s warehouses.
“Unfortunately, we do not see the increase in demand and the improvement of the price situation on the global titanium market. The situation with sales remains difficult,” he said.
Despite difficulties with sales, the company does not intend to leave production facilities idle.
“Our company is a state-run company. For now we manage to create a financial ‘cushion’ softening the crisis. We would not violate our liabilities to employees,” he said.
The company in January-March 2016 increased tax payments to the budgets of all levels to UAH 64 million, while in Q1 2015 the sum was UAH 47.9 million, not taking into account the cost of production licenses and permits.
