Business news from Ukraine

AGROLIGA GROUP SEES 11% RISE IN NET PROFIT IN 2017

The Agroliga Group (Kharkiv region) saw EUR 4.21 million in net profit in 2017, which is 11.4% more than in 2016.
According to a company report on the Warsaw Stock Exchange (WSE), its revenue grew by 2.1%, to EUR 21.79 million.
Gross profit grew by 30.6%, to EUR 5.97 million. Operating profit rose by 33.9%, to EUR 5.2 million.
Assets increased by 40.5%, reaching almost EUR 25.6 million as of December 31, 2017.
The company plans to launch a new vegetable oil refinery in the village of Nova Vodolaha (Kharkiv region) in the first quarter of 2018. The total cost of construction and procurement of all the required components and equipment was estimated at $9 million, of which $ 6.7 million was financed using external sources.
The new refinery will have the opportunity to vary the volume of processing of raw materials from 100,000 tonnes to 170,000 tonnes without additional investment in equipment, and if small investment is attracted, the capacity can be increased up to 280,000 tonnes per year.
The refinery will also be able to reconfigure equipment for soybean and rapeseed oil refinery without additional investment in equipment.
Agroliga Group has been working in the Ukrainian market of agricultural products since 1992. Its enterprises are engaged in growing grain crops, processing sunflower seeds and dairy cattle breeding.

NATIONAL ENERGY COMPANY UKRENERGO AND HUNGARY’S MAVIR WANT TO MODERNIZE 750 KV POWER LINE.

National energy company Ukrenergo and Hungary’s MAVIR have signed a memorandum on modernization of the 750 kV Western Ukrainian-Albertirsa interstate power line, the press service of the company has reported.
“The modernization of the interstate power line is the strengthening of reliability of existing links between the Ukrainian power grid and the power grids of continental Europe, which is important for the future synchronous operation of the Ukrainian power grid with ENTSO-E,” the press service said.
The press service said that the sides before April 1, 2018 will design and finalize a general action plan for the implementation of the project, in particular determine technical solutions for reconstruction.
MAVIR seeks to build a new 750/400 kV substation by the end of 2019 to which Western Ukrainian-Albertirsa power line will be connected.
Ukrenergo will conduct an additional transposition (changing the location of the wires of the individual phases of the power line to minimize voltage deviations in the 750 kV phases from the nominal one) of the wires and will also arrange the fiber-optic communication channel on the adjacent 220-400 kV air lines going to Hungary. The reconfiguration of the line is planned before the end of 2019.
Ukrenergo recalled that Hungary is one of the key importers of Ukrainian electricity with an annual volume of about 3 billion kWh.
Ukrenergo operates trunk and interstate power grids, as well as performs the centralized dispatching of the united energy system in the country. The company is a state-owned enterprise, it is subordinate to the Ministry of Energy and Coal Industry.

POLTAVA PETROLEUM COMPANY THIS MONTH TO START DRILLING WELL IN YELYZAVETIVSKE FIELD

Poltava Petroleum Company JV (PPC) by the end of February will start drilling well E308 in the Yelyzavetivske field (Poltava region), the company’s press service has reported.
“JV Poltava Petroleum Company (PPC) announces decision to resume its drilling program in Ukraine. According to the company’s new development strategy for 2018, drilling of the first well E308 should begin at Yelyzavetivske deposit by the end of February. Projected well depth is 3,000 meters. As of today, pre-drilling activities are underway while the tender to select a drilling operator is being finalized,” the company said.
The company said that one of the primary factors motivating the decision was the amendment adopted by the Ukrainian parliament late 2017, which reduced royalty rates for new gas wells.

TECHNICAL MISSION OF IMF STARTS WORKING IN UKRAINE

The technical mission of the International Monetary Fund (IMF) began its work in Ukraine.
“The purpose of the mission is to discuss practical issues related to the continuation of the expanded financing program (EFF),” the press service of the Cabinet of Ministers said on Monday.
It is noted that on Monday, Prime Minister Volodymyr Groysman met with the mission’s head Ron van Rooden.
As reported, Finance Minister Oleksandr Danyliuk said that IMF experts in Kyiv would provide Ukrainian authorities with recommendations on the Anti-Corruption Court.

UKRAINE INTERNATIONAL AIRLINES RECEIVES ONE MORE BOEING 737-800

Ukraine International Airlines (UIA, Kyiv) has expanded its fleet with one more next generation Boeing 737-800 aircraft, becoming the 27th Boeing plane in the airline’s fleet. The Boeing 737-800 NG passenger capacity of 186 seats will be operated in a two-class cabin layout throughout the network of medium haul UIA flights and will start commercial flights as early as February this year.
The UR-PSZ aircraft made in 2009 was issued to UIA in operating leasing from Dubai Aerospace Enterprise (DAE).
“The new aircraft has been completely reconfigured in accordance with UIA standards. New armchairs in business and economy class sectors, as well as new kitchen modules have been installed. This year we plan further updating and expansion of the fleet, a gradual expansion of the network and an increase in the frequency of flights to already serviced routes. In the plans of UIA is exceeding the record level of 8 million passengers to be carried in 2018,” UIA corporate spokesperson Yevhenia Satska said.
UIA, the leading Ukrainian air carrier, was founded in 1992. It connects Ukraine with more than 80 capitals and key cities in Europe, Asia, Africa, America, the Middle East and CIS countries, and also provides connections with the routes of partner airlines to more than 3,000 cities of the world. UIA performs more than 1,100 regular flights a week.
The fleet consists of 42 airplanes of different modifications, including 27 medium range Boeing-737 NG aircraft. One of the ultimate beneficiaries of the company is businessman Ihor Kolomoisky.

CABINET OF MINISTERS REVISED FINANCIAL PLAN OF UKRHYDROENERGO WITH UAH 2.5 BLN PROFIT

The Cabinet of Ministers of Ukraine on February 7, 2018 approved the revised financial plan of private joint-stock company Ukrhydroenergo for 2018 with net profit of UAH 2.54 billion, the company’s press service has reported.
“Changes in the financial plan of Ukrhydroenergo for 2018 were made in connection with the approval of the tariffs for electricity supply by the National Commission for Energy, Housing and Utilities Services Regulation, an increase in electricity production for 2018, in accordance with the approved updated forecasted balance of electricity of the Ukrainian power grid, as well as with the change in the investment program of Ukrhydroenergo,” the press service said.
The company said that the financial plan takes into account the decrease in the average tariff of Ukrhydroenergo for electricity supply by 11.4%, to 70.2 kopecks per kWh.
Ukrhydroenergo operates all large hydroelectric power stations located in the Ukrainian sections of the Dnipro and Dniester rivers. The total installed capacity of the company’s hydroelectric power plants is 5,745 MW. The state fully owns the company’s shares.