Business news from Ukraine

KYIVSKY CARDBOARD MILL SEES SLIGHT RISE IN PRODUCTION

Kyivsky cardboard paper mill (Obukhiv, Kyiv region), a leader in Ukraine’s pulp and paper industry in terms of production and sales, saw a 1.8% rise in production of goods in money terms in January-September 2019 year-over-year, to UAH 4.139 billion, according to the Ukrpapir association.
Corrugated packaging output fell by 1.7%, to 172.64 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 4%, to 149,170 tonnes. Production of package cardboard alone grew by 2.7%, to 108,590 tonnes, while box cardboard output fell by 18.5%, to 40,580 tonnes.
Production of base paper (for sanitary products) stood at 61,140 tonnes, which is 3.8% up year-over-year. Toilet paper output rose by 4.3%, to 330.4 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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STATE-OWNED ARTYOMSOL SEES 2.6% RISE IN SALT PRODUCTION

State-owned enterprise Artyomsol (Donetsk region) produced over 1.48 million tonnes of salt in January-September, which is 2.6% more than a year ago.
According to the report on the website of the state-owned enterprise, from the beginning of the year, Artyomsol produced 338,500 tonnes of bulk milled salt, which is 20.7% higher than in January-September 2018.
The output of salt packaged in flexible containers increased 13%, to 49,300 tonnes, salt blocks – by 15%, to 2,300 tonnes.
At the same time, according to the information of the SOE for the first nine months of this year, the production of packaged salt decreased by 8.9%, to 134,700 tonnes. Production of salt packed in bags was less than 4.9%, salt briquettes – 18.7% compared with the same period a year earlier. In addition, iodized salt production was 13.1% less (only 41,700 tonnes).
The state-owned enterprise said that 763,100 tonnes of salt were shipped to foreign consumers in January-September 2019, which is 8% more compared to the same period in 2018.
Hungary, Poland, Slovakia, and Romania remain the main importers of Artyomsol products.
“The results of the enterprise’s work were significantly affected by the steadily increasing cost of transportation of goods by rail by Ukrzaliznytsia. This factor reduces the competitiveness of salt of the Ukrainian producer,” the company said.
Artyomsol is the largest enterprise for extraction and sale of sodium chloride (NaCl) in Central and Eastern Europe. Its production facilities are located in Soledar (Donetsk region). The company exports products to 15 countries.

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MILK PRODUCTION IN UKRAINE IN JAN-SEPT DECREASES BY 3.5%

Milk production in Ukraine in January-September 2019 decreased by 3.5% compared to the same period in 2018, to 7.61 million tonnes.
According to the State Statistics Service, in January-September 2019, farmers produced 2.42 million tonnes of meat (live weight), which is 6.4% more than in the same period of 2018.
Egg production grew by 4.3%, to 13.02 billion units.

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AZOVSTAL REDUCES PRODUCTION OF ROLLED GOODS BY 5%

Azovstal Iron and Steel Works (Mariupol, Donetsk region) in January-September 2019 reduced production of rolled goods by 5% to 2.883 million tonnes compared to the same period in 2018, according to recent data.
A representative of the company told the Interfax-Ukraine agency steel production decreased by 2.8%, to 3.079 million tonnes, output of pig iron by 10.3%, to 2.623 million tonnes.
In September, Azovstal produced 318,000 tonnes of rolled goods, 345,000 tonnes of steel, and 301,000 tonnes of pig iron.
Azovstal in 2018 kept its rolled stock production at the previous year’s level – 3.879 million tonnes, but reduced steel output by 4%, to 4.082 million tonnes, pig iron by 2%, to 3.707 million tonnes.
The company is part of Metinvest Group, the main shareholders of which are SCM Group (71.24%) and Smart-Holding (23.76%), jointly managing the company.
Metinvest Holding LLC is the managing company of Metinvest Group.

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JKX OIL & GAS RAISES DAILY PRODUCTION BY 19%

JKX Oil & Gas with assets in Ukraine and Russia in the nine months of 2019 reached an average daily production of 10,668 barrels of oil equivalent (boepd), which is 19% more than the average figure for the nine months of 2018.
According to the company’s report on the London Stock Exchange, production in Ukraine in January-September 2019 rose by 51% compared to January-September 2018, to 5,535 boepd, in particular that of gas by 55%, to 765,000 cubic meters per day, oil and condensate by 33%, to 1,033 boepd.
At the same time, the average gas price for the indicated period of 2019 in Ukraine decreased by 21% compared to the same period in 2018, to $226 per 1,000 cubic meters, oil by 15%, to $61 per barrel.
The company said that in the third quarter of this year, compared with the second quarter, the average daily production grew by 13%, to 11,719 boepd, including in Ukraine by 16%, to 6,217 boepd. In particular, the growth of gas production in Ukraine amounted to 14%, to 842,000 cubic meters per day, oil and condensate by 26%, to 1,260 boepd.
“This is the highest level of oil production for the quarter and since the beginning of the year for the period from 2013,” the report said.
The increase in oil production in the third quarter of 2019 is the result of drilling two new wells: NN81 and IG142, JKX said.
At the same time, gas prices continued to decline in the third quarter, to an average of $175 per 1,000 cubic meters compared with $215 per 1,000 cubic meters in the second quarter and $269 per 1,000 cubic meters in the first quarter.
JKX Oil & Gas is engaged in the exploration and production of hydrocarbons in Ukraine, the Russian Federation, Hungary, and Slovakia.

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COALMINES OF DTEK ENERGY CUT PRODUCTION BY 6.8%

Coalmines of DTEK Energy in January-September 2019 produced 16.5 million tonnes of run-of-mine (ROM) coal, which is 6.8% less than in January-September 2018 (UAH 17.7 million tonnes).
According to the company’s press release, by the end of this year, DTEK Energy’s mines plan to produce a total of more than 23 million tonnes of coal.
“Successfully passing the heating period is task number one for all energy companies. DTEK, as a representative of thermal generation, accumulates sufficient coal reserves in the warehouses of thermal power plants before the start of winter. Our priority is domestic fuel. DTEK Energy’s mines produce 1.8 million tonnes per month. It is possible to achieve such indicators thanks to the hard work of our miners and constant investments in coal mining,” DTEK Energo CEO Dmytro Sakharuk said.

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