Business news from Ukraine

FERREXPO INCREASES NET PROFIT TO $871 MLN IN 2021

Mining company Ferrexpo with assets in Ukraine in 2021 increased its net profit by 37.1%, to $870.99 million, with revenue growth of 48.1%, to $2 billion 518.23 million, according to the company’s report on the London Stock Exchange in Friday.
According to it, EBITDA profit increased by 67.5% to $1 billion 438.76 million.
The report also notes that the company’s gross debt fell from $266 million to $50 million last year, while its net cash position increased from $4 million to $117 million.
Ferrexpo says its manufacturing assets were not affected by the hostilities after Feb. 24, but shipping has been halted since Feb. 25, with only shipments to Europe currently taking place.
Commenting on the impact of the war on operations and financials, Ferrexpo says it has adjusted its long-term model to reflect lower sales volume caused by a lack of offshore sales to its customers. The expected lower sales volume will have a negative impact on cash flow generation, which in turn will negatively affect the carrying value of the group’s non-current assets in future periods. However, Ferrexpo has so far refrained from making any assessments.
At the same time, Ferrexpo said it had prepared stress tests with more severe adverse changes such as a 3, 6 and 18 month production halt. Under these stress testing scenarios, the impairment loss could increase to between $320 million and $400 million, again depending on circumstances and macroeconomic data that would only be known to the Group at the time of preparation of the interim condensed consolidated financial statements for the six months ended 30 June 2022.

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LIFECELL NET PROFIT GOES DOWN BY 4.2-FOLD

Over 2021, mobile operator Lifecell LLC (lifecell) received a net profit of UAH 610.9 million, which is 4.24 times less than in 2020 (UAH 2.589 billion), according to the company’s financial statements.
At the same time, the operator’s income in 2021 increased by 24.1%, to UAH 8.483 billion.
EBITDA increased by 30.9%, to UAH 4.751 billion, while EBITDA margin increased by 2.9 percentage points (p.p.), to 56%.
Lifecell’s capital investments in 2021 increased by 3.2%, to UAH 3.594 billion.
According to the information provided, in the fourth quarter of 2021, the operator’s income increased by 25.7%, to UAH 2.406 billion. EBITDA in the October-December quarter increased by 26.5%, to UAH 1.319 billion.
On an annual basis, the operator’s active three-month subscriber base in 2021 expanded by 13.6%, to 9.2 million (compared to 8.1 million in 2020).
The active three-month 4.5G subscriber base in 2021 grew 32% year-on-year to 73% of total mobile data users at the end of the year. Average data consumption per user in the fourth quarter of 2021 grew by 13%, mainly due to higher data usage by 4.5G users, the company notes. The penetration of smartphones in the lifecell network at the end of the fourth quarter of 2021 was 83%.
The company’s active three-month ARPU increased by 12.3% in 2021 and amounted to UAH 83.2 compared to last year’s figure of UAH 74.1. At the same time, the 12-month MoU increased 2.7% year-on-year, while falling 3.5% year-on-year in the fourth quarter.
Operator lifecell is the third largest mobile operator in Ukraine. Turkcell (Turkey) owns 100% shares of Lifecell LLC.

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UKRZALIZNYTSIA RECEIVES UAH 21 MLN IN PROFIT IN JAN

JSC Ukrzaliznytsia received UAH 21 million in net profit in January 2022 versus a loss of UAH 693 million in January 2021, Oleksandr Kamyshin, head of the company’s board, said on his Telegram channel on Monday.
According to him, revenue increased by 63%, to UAH 9.3 billion (versus UAH 5.7 billion in January 2021). EBITDA increased five times to UAH 2.6 billion (January 2021 – UAH 506 million).
“This is despite the fact that now we have received UAH 1.8 billion exchange loss, and last year there was UAH 117 million exchange income,” he said.
As reported, JSC Ukrzaliznytsia received UAH 457 million in net profit in 2021 versus a loss of UAH 11.9 billion a year earlier.

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CITIBANK INCREASES PROFIT IN UKRAINE

The net profit of Citibank (Kyiv) in January-September 2021 amounted to UAH 1.225 billion, which is 18.5% more than in the same period in 2020 (UAH 1.03 billion), according to the quarterly reports released on the bank’s website.
According to the report, for the third quarter of 2021, the net profit of Citibank increased by 32.8% compared from the corresponding indicator of the previous year – to UAH 479.15 million.
The bank’s net interest income for the nine months of 2021 decreased by 3.3% compared to the comparable period (to UAH 1.03 billion), while net commission income increased by 7.5% (to UAH 195.3 million).
The bank’s assets over the specified period increased by 23% – to UAH 34.3 billion, in particular, cash and cash equivalents increased by 17% (UAH 10.14 billion), clients’ loans and debts increased by 2.2 times (to UAH 5.675 billion).
Citibank’s liabilities in January-September 2020 increased by 25.8%, to UAH 31.92 billion, including bank funds by 2.2 times, to UAH 330.1 million, and customer funds increased by 25.2%, to UAH 31.385 billion.
The bank’s equity capital during this period decreased by UAH 113 million – to UAH 2.368 billion, charter capital remained at the level of UAH 200 million.
Citibank was founded in 1998 and is a subsidiary bank of the American Citibank NA.
According to the National Bank of Ukraine, as of September 1, 2021 Citibank ranked 14th in terms of total assets (UAH 34.494 billion) among 72 operating banks.

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NET PROFIT OF STATE-RUN UKRGASBANK GROWS BY 2.6 TIMES IN JAN-SEPT 2021

Net profit of Ukrgasbank (Kyiv) in January-September 2021 amounted to UAH 1.748 billion, which is 2.6 times more than in the same period of 2020 (UAH 685.19 million), according to the bank’s quarterly report posted on his website.
According to it, in the third quarter Ukrgasbank’s net profit amounted to UAH 1.021 billion, which is 4.1 times more than in the same period in 2020 (UAH 248 million)
The bank’s net interest income (after deductions on credit losses) in January-September 2021 grew 2.4 times compared to the same indicator a year earlier, from UAH 1.28 billion to UAH 3.131 billion, net fee and commission income rose by 27.5%, to UAH 1.108 billion.
Ukrgasbank’s assets in January-September 2021 fell by 21% to UAH 112.77 billion, and cash and cash equivalents by 23.8%, to UAH 26.88 billion, while loans to customers and finance lease grew by 4.8%, to UAH 49.82 billion
In addition, the bank’s investments, which are measured at fair value through other comprehensive income, decreased 1.7 times in January-September 2021, to UAH 32.08 billion, while investment property remained at the level of UAH 149.255 million.
Liabilities of Ukrgasbank in January-September fell by 33.3%, to UAH 102.9 billion, including customer funds decreased by 28%, to UAH 91.125 billion, while funds from credit institutions increased 46%, to UAH 8.28 billion, and provisions for guarantees, liabilities and legal risks grew by 1.7 times, to UAH 702.9 million.
The bank’s equity capital in January-September 2021 grew by 15.7%, to UAH 9.9 billion. The charter capital remained at the level of UAH 13.84 billion.
JSB Ukrgasbank was established in 1993. The state, represented by the Ministry of Finance, owns 94.94% of the shares of the financial institution.
According to the National Bank of Ukraine (NBU), as of September 1, 2021, Ukrgasbank ranked fifth in terms of total assets (UAH 124.417 billion) among 72 banks operating in the country.

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OTP BANK INCREASES NET PROFIT BY 1.4 TIMES IN UKRAINE

The net profit of OTP Bank (Kyiv) in January-September 2021 amounted to UAH 2.066 billion, which is 1.4 times more than in the same period in 2020 (UAH 1.5 billion).
According to reports on the bank’s website, its net profit for the third quarter of 2021 decreased by 16.6% from the corresponding indicator a year earlier – to UAH 771 million.
Net interest income of OTP Bank for the nine months increased by 26.9% compared to January-September 2020 – up to UAH 3.34 billion, and net commission income – by 13.2%, to UAH 977 million.
The bank’s assets for three quarters increased by 5% – to UAH 64.5 billion, including loans to customers – by 30.2%, to UAH 35.99 billion, while funds in banks decreased by 5%, to UAH 12.95 billion.
The bank’s liabilities for the reporting period increased by 9.3% – to UAH 54.08 billion, in particular, customer accounts – by 9.6%, to UAH 52.4 billion.
According to reports, OTP-Bank’s equity capital for the first nine months of this year increased by 8.7% – up to UAH 10.4 billion, while charter capital remained at the level of UAH 6.186 billion.
OTP Bank is the flagship of the OTP banking group, registered by the NBU, which also includes AMC OTP Capital LLC and OTP Leasing LLC.
According to the National Bank of Ukraine, as of September 1, 2021, in terms of total assets (UAH 65.765 billion) OTP Bank ranked ninth among 72 banks operating in the country.

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