Business news from Ukraine

SMART ENERGY REACHES 1 MCM DAILY PRODUCTION OF NATURAL GAS

Smart Energy group, following the results of drilling and overhaul projects, has reached the daily production of natural gas in the amount of one million cubic meters (mcm), the press service of the group has said.
Among the successful well overhaul projects, Smart Energy noted the decommissioning of well No. 1 in Ostroverkhivske gas condensate field (Kharkiv region), located in the license area of Ukrgazvydobuvannia.
As reported, in 2019 the group plans to invest about UAH 1 billion in the increase of natural gas production.
Earlier, in January 2019, the group announced that it had reached a historic daily maximum of 960,000 cubic meters of gas.
Smart Energy is a management company that is part of Vadim Novinsky’s Smart-Holding. It is engaged in the implementation of projects in the field of hydrocarbon production and alternative energy.

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UKRAINE SEES 3% RISE IN GAS PRODUCTION

Production of natural gas in Ukraine in January and February 2019 increased by 2.8% (by 94.5 million cubic meters) compared to the same period in 2018, to 3.46 billion cubic meters, according to current data from PJSC Ukrtransgaz.
According to calculations by Interfax-Ukraine, in particular gas production by JSC Ukrgazvydobuvannia amounted to 2.542 billion cubic meters (2.7% up from January-February 2018), PJSC Ukrnafta to 189.2 million cubic meters (9.6% up), by other companies to 728.9 million cubic meters (1.5% up).
In February 2019, gas production amounted to 1.644 billion cubic meters (3.3% up compared to February 2018), in particular extraction by Ukrgazvydobuvannia was 1.207 billion cubic meters (3% up), Ukrnafta some 90.4 million cubic meters (10.7% up), other companies some 346.8 million cubic meters (2.4% up).
Ukrtransgaz, fully owned by Naftogaz Ukrainy, operates a system of trunk gas pipelines and 12 underground gas storage facilities of the country with a total capacity of 31 billion cubic meters.

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UKRAINE CUTS STEEL PRODUCTION BY 5%, RANKS 13TH IN WORLDSTEEL RATING

Ukrainian metallurgical enterprises in January 2019 reduced steel production by 4.9% compared to the same period in 2018, to 1.850 million tonnes, moving from the 12th to 13th place in the ranking of 64 countries, the major global manufacturers of these products, compiled by the World Steel Association (Worldsteel).
A decrease in steel production in most of the top ten countries, except for China, the United States and Brazil was recorded in January.
The top ten producer countries in January are as follows: China (75.013 million tonnes, an increase of 4.3%), India (9.180 million tonnes, a fall of 1.9%), Japan (8.141 million tonnes, a drop of 9.8%), the United States (7.647 million tonnes, an increase of 11%), South Korea (6.211 million tonnes, a fall of 1.5%), the Russian Federation (5.790 million tonnes, a fall of 4.5%), Germany (3.410 million tonnes, a decrease of 7.2%), Brazil (2.933 million tonnes, an increase of 2.3%), Turkey (2.565 million tonnes, a drop of 19.5%), and Iran (2.230 million tonnes, a fall of 2.6%).
They are followed by Taiwan (2.010 million tonnes, an increase of 10.4%), Italy (1.959 million tonnes, a decrease of 3.6%), and Ukraine (1.850 million tonnes, a fall of 4.9%).

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WEIDMANN MALYN PAPER FACTORY INCREASES PRODUCTION IN JAN

Private joint-stock company Weidmann Malyn paper factory (MPF, Zhytomyr region), the only producer of electrical insulating board for power engineering machines in Ukraine, increased production by 11.5% in January 2019 compared with January 2018, to UAH 58.24 million. Paper output in kind rose by 18.6%, to 542 tonnes, while cardboard production increased by 9%, to 424 tonnes.
MPF Weidmann is a member of the WICOR international group, the only company in Eastern Europe that can supply almost all kinds of electrical insulating paper and cardboard meeting regional and international standards.
In 2018, the factory increased production of commodity goods by 7.7%, to almost UAH 636.46 million.

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UKRAINIAN VEHICLE PRODUCTION 57% UP IN JAN

Production of vehicles in Ukraine in January 2019 grew by 56.7% compared with January 2018, to 893 vehicles, and the growth pace is linked to the assembly of Skoda passenger cars by Eurocar Plant, which grew by 73%, to 828 cars, the Ukrautoprom association has reported.
Eurocar improved its production 4.2-fold compared with December 2018.
The association said that today Eurocar is the only enterprise in Ukraine where the production of passenger cars continues.
At the same time, the production of commercial vehicles fell by more than 63%: only five vehicles were manufactured in a month (excluding AvtoKrAZ, which has stopped disclosing production information since August 2016), including four by Cherkasy Bus (two in January 2018), and one by Zaporizhia Automobile Plant (ZAZ, 30 vehicles)
The production of buses practically did not change: 60 buses were produced, against 59 vehicles a year earlier. The Cherkasy Bus (40 buses in January 2019 compared with 12 in January 2018) remained the leader of their production, the Chernihiv Automobile Plant (14 compared with 20 the previous year) was the second, the ZAZ and the Chasiv Yar Bus Plant made three buses each (compared with seven buses and 17 buses, respectively). Not a single bus was produced by Bogdan Corporation (three buses in January 2018).
Compared with December 2018, the output of buses in January decreased by 21%.
As reported, in 2018, the Ukrainian automakers produced only 6,616 vehicles. This was 23% less than a year earlier, and production capacity was loaded less than 1.5%.
At the same time, passenger car assembly decreased by 22%, to 5,660 cars (including Eurocar produced 5,659 cars, 7.9% less), commercial vehicles (excluding products of AvtoKrAZ) – by 73%, to 132 units. A slight positive trend was seen only in the production of buses – an increase of 2.5%, to 824 units.

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UKRAINE RAISES GAS PRODUCTION BY 0.5%

Natural gas production in Ukraine in 2018 increased by 0.5% (by 106.3 million cubic meters) compared to 2017, to 20.898 billion cubic meters, the Ministry of Energy and Coal Industry has told Interfax-Ukraine. According to the ministry, the enterprises of Naftogaz Ukrainy increased gas production by 0.9% (by 152.9 million cubic meters), to 16.506 billion cubic meters during this period. In particular Ukrgazvydobuvannia increased gas production by 1.2% (by 176.2 million cubic meters), to 15.420 billion cubic meters, while Ukrnafta reduced it by 2.1% (by 23.3 million cubic meters), to 1.078 billion cubic meters. Chornomornaftogaz retained production at the level of the previous year at 8.7 million cubic meters.
Other oil and gas producing companies operating in the country in 2018 reduced gas production by 1% (by 46.5 million cubic meters) compared to 2017, to 4.391 billion cubic meters.

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