Business news from Ukraine

PAPER AND BOARD COMPANY SEES 13% RISE IN PRODUCTION IN Q1 2019

Paper and Board Company (Lviv), the producer of packaging cardboard tubes and hygienic paper products, in January-March 2019 saw a 12.9% rise in production year-over-year, to UAH 151.7 million.
According to the Ukrpapir association, the company increased production of base paper for hygienic paper products by 6% over the period, to 1,530 tonnes, production of box cardboard fell by 9.25, to 5,910 tonnes.
Toilet paper output grew by 23%, to 899,000 rolls. In January-March 2019, production of toilet paper reached 173 million rolls.
Paper and Board Company was established in 1946 on the basis of the production facilities of a small mechanical plant. Currently it produces goods and semi-finished products from waste paper (cardboard sheets, corners, tubes) and pulp paper (toilet paper, towels, napkins).
The company exports its products, in particular to Poland, Germany, France, Austria, Italy, Portugal and Romania.

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UKRAINE COULD CUT SUGAR PRODUCTION BY 26%

Sugar production in Ukraine in the new season could fall by 23-29%, to 1.3-1.4 million tonnes, and the number of sugar refineries from 42 operating this season to 343-35, the Ukrtsukor national association of sugar producers has said.
“We are already seeing a reduction in the acreage of sugar beet this year and, of course, it will have its own “imprint” this autumn, when significantly fewer sugar refineries are launched compared with the 2018/2019 season. According to our estimates, it will be 34-35 enterprises, while in the current season 42 refineries worked,” Deputy Chairperson of the association Ruslana Butylo said.
According to her, given the reduction in acreage and the number of operating refineries, caused by the global sugar surplus, a significant reduction in sugar production and price hikes are predicted.
“The global surplus of recent years has not had the best effect on the state of sugar production in Ukraine. Excess sugar “pressed” on prices and lowered them more and more, far beyond the break-even point of production, diluting all financial reserves of producers, both in the world and in Ukraine. At the moment, it is rather difficult to predict the yield and sugar content of beets, the sowing of which is almost completed. However, we can assume that sugar will be 23-29% less this autumn – 1.3-1.4 million tonnes. This is the lowest amount of production since 2013,” Butylo said.

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PAPER AND BOARD COMPANY SEES 13% RISE IN PRODUCTION

Paper and Board Company (Lviv), the producer of packaging cardboard tubes and hygienic paper products, in January-March 2019 saw a 12.9% rise in production year-over-year, to UAH 151.7 million.
According to the Ukrpapir association, the company increased production of base paper for hygienic paper products by 6% over the period, to 1,530 tonnes, production of box cardboard fell by 9.25, to 5,910 tonnes.
Toilet paper output grew by 23%, to 899,000 rolls. In January-March 2019, production of toilet paper reached 173 million rolls.
Paper and Board Company was established in 1946 on the basis of the production facilities of a small mechanical plant. Currently it produces goods and semi-finished products from waste paper (cardboard sheets, corners, tubes) and pulp paper (toilet paper, towels, napkins).
The company exports its products, in particular to Poland, Germany, France, Austria, Italy, Portugal and Romania.

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JKX SEES DAILY PRODUCTION RISE BY 11.6% IN Q1 2019

JKX Oil&Gas with assets in Ukraine and Russia in the first quarter of 2019 reached average daily production of 9,907 boepd, which is 11.6% more than in the fourth quarter of 2018 and 13.2% more than in the first quarter of 2018.
The company reported on the London Stock Exchange on Wednesday that March 2019 monthly production of 10,200 boepd, strongly supported by the IG103 side track that has averaged 1,598 boepd in Q1 2019, is the highest monthly average group production since June 2016.
In Ukraine, production grew by 35.1% in Q1 2019 compared with Q4 2018, to 5,009 boepd, including a 37.6% rise in gas production, to 709,000 cubic meters a day, and a 23.8% rise in oil and condensate production, to 837 boepd.
Average price of gas in January-March 2019 in Ukraine fell by 21.6% on Q4 2018, to $269 per 1,000 cubic meters and the price of oil – by 28%, to $59 per barrel.
JKX said that the company held $10.5 million cash at March 31, 2019, after payment of $5.3 million principal and $0.7 million interest to the convertible bondholders in February. In addition to cash we are holding oil and gas inventory of approximately $4.8 million in value.

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KYIVSKY CARDBOARD PAPER MILL SEES 2% RISE IN PRODUCTION AND SALES

Kyivsky cardboard paper mill (Obukhiv, Kyiv region), a leader in Ukraine’s pulp and paper industry in terms of production and sales, saw a 2% rise in production of goods in money terms in January-March 2019 year-over-year, to UAH 1.349 billion, according to the Ukrpapir association.
Corrugated packaging output fell by 2.7%, to 54.27 million square meters, retaining the second highest result among producers of corrugated packaging in Ukraine after Rubizhne cardboard packaging mill in Luhansk region (with Trypilsky packaging plant).
Production of cardboard decreased 12.5%, to 47,960 tonnes. Production of package cardboard alone fell by 3%, to 34,730 tonnes, while box cardboard output fell by almost 30%, to 13,230 tonnes.
Production of base paper (for sanitary products) stood at 20,000 tonnes, which is 9% up year-over-year. Toilet paper output rose by 4.7%, to 108.81 million rolls.
Corrugated packaging output in total in Ukraine (including other producers) fell by almost 5% in January-March 2019, to 234.17 million square meters, that of paper and cardboard decreased by 8.7%, to 213,860 tonnes and toilet paper grew by 3.7%, to 173 million rolls.
Kyivsky cardboard paper mill is one of the largest cardboard and paper producers in Europe. It employs almost 2,200 people. It sells produce to almost 700 companies in Ukraine, some CIS member states and the rest of the world.

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UKRAINE SEES 7.1% FALL IN COAL PRODUCTION IN JAN-MARCH

Coal mining enterprises in Ukraine in January-March 2019 reduced run-of-mine (ROM) coal production by 7.1% (by 594,500 tonnes) compared to the same period in 2018, to 7.765 million tonnes.
According to the Ministry of Energy and Coal Industry, extraction of coking coal during the reporting period decreased by 24% (by 387,400 tonnes), to 1.227 million tonnes, and steam coal fell by 3.1% (by 207,100 tonnes), to 6.537 million tonnes.
Krasnolymanske LLC, under control of Vitaliy Kropachev, continued hiding information about its operations from the ministry started in September 2018.
The ministry said that in March 2019, ROM coal production fell by 11.9% (360,400 tonnes) compared with March 2018, to 2,664 million tonnes.
Coal mining enterprises managed by the Ministry of Energy and Coal Industry reduced coal production by 19.5% (by 230,900 tonnes), to 955,500 tonnes, in particular extraction of coking coal grew by 10.1%, to 165,800 tonnes, while steam coal production fell by 23.8%, to 789,700 tonnes.
Mines in Donetsk region produced 2.524 million tonnes of coal (14% less compared with January-March 2018), Luhansk region some 111,700 tonnes (23.7% less), Dnipropetrovsk region some 4.74 million tonnes (2% less), Lviv region some 374,300 tonnes (8.6% less), and Volyn region some 14,300 tonnes (52.2% less).

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