Business news from Ukraine

INTERPIPE MORE THAN HALVES NET PROFIT IN 2021

The international vertically integrated pipe and wheel company (TKK) Interpipe received $91.316 million in net profit in 2021, while in 2020 this figure was $195.116 million (a decrease of 53.2%).
According to the company’s annual report, pre-tax profit was $110.907 million compared to $227.405 million in 2020.
At the same time, last year’s revenue increased to $1 billion 132.9 million from $865.131 million.
At the same time, Interpipe increased free cash from $96.631 million to $109.627 million over the year.
In 2020, Interpipe reduced its net profit by 4.2 times compared to 2019 – to $195.116 million from $828.656 million, revenue decreased by 22.9% – to $865.131 million.
Interpipe is a Ukrainian industrial company, a manufacturer of seamless pipes and railway wheels. The company’s products are supplied to more than 80 countries through a network of sales offices located in the key markets of the CIS, the Middle East, North America and Europe.
The structure of the company includes five industrial assets: Interpipe Nizhnedneprovsk Pipe Rolling Plant (NTZ), Interpipe Novomoskovsky Pipe Plant (NMTZ), Interpipe Niko-Tube, Dnipropetrovsk Vtormet, and the Dneprostal electric steel-smelting complex under the Interpipe Steel brand .
The ultimate owner of Interpipe Limited is Ukrainian businessman Viktor Pinchuk and members of his family.

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CONSOLIDATED NET PROFIT OF NAFTOGAZ OF UKRAINE IN 2021 AMOUNTED TO MORE THAN UAH 12 BLN

The consolidated net profit of NJSC Naftogaz of Ukraine for 2021 amounted to UAH 12.023 billion against a net loss of UAH 19.002 billion in 2020.
According to the reports published on the website of Naftogaz, its sales revenues last year increased by 36.5% (by UAH 58.15 billion) compared to 2020 – up to UAH 217.384 billion, total revenues – by 13.5% ( by UAH 25.962 billion), up to UAH 218.979 billion.
In terms of segments, revenue from sales in 2021/2020: sales of natural gas (UAH 136.751 billion / UAH 75.821 billion), domestic exploration and production (UAH 90.309 billion / UAH 61.472 billion), Ukrnafta (UAH 36.944 billion / UAH 35.535 billion ), gas transit services (UAH 32.72 billion/UAH 46.724 billion), gas storage (UAH 4.764 billion/UAH 6.046 billion), oil transit services (UAH 3.583 billion/UAH 3.466 billion), domestic oil transportation (UAH 0.411 billion UAH/0.275 billion UAH), other (3.165 billion UAH/2.776 billion UAH), elimination (-91.263 billion UAH/-72.881 billion UAH).
Geographical structure of income from the sale of goods and services in 2021 and 2020: Ukraine (UAH 175.709 billion/UAH 104.266 billion), RF (UAH 36.071 billion/UAH 49.91 billion), Europe (UAH 4.457 billion/UAH 4.837 billion), Asia (UAH 0.802 billion/0), Egypt (UAH 0.342 billion/UAH 0.209 billion), USA (UAH 0.003 billion/UAH 0.012 billion).
The press release of the NAC to the published financial statements notes that the main profit of the company last year was received from mining.
“However, not all segments of activity were profitable and this needs to be corrected. In particular, the activity of importing, trading and supplying gas was unprofitable due to state regulation, primarily the decisions of the NEURC regulator. Gas storage activities were also unprofitable, partly also from – for the decisions of the regulator,” said the head of the NAC Yuriy Vitrenko.
“State-owned companies should be profitable under normal conditions. Given the scale of Naftogaz, such profits are not excessive, taking into account the invested capital and its cost. At the same time, the data indicate that Naftogaz would be profitable in 2021 without gas transit. This important achievement,” he said.
Naftogaz unites the largest oil and gas producing enterprises of the country (100% of Ukrgazvydobuvannya and 50% + 1 share of PJSC Ukrnafta). The Group has a monopoly on the storage of natural gas in underground storage facilities (100% Ukrtransgaz) and the transportation of oil by pipeline across the country (100% Ukrtransnafta), and is actively developing the direction of gas supplies to household consumers.

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KSG AGRO INCREASES NET PROFIT BY 2.5 TIMES IN Q1

Agroholding KSG Agro in January-March 2022 increased its net profit by 2.5 times compared to the first quarter of 2021 – up to $1.82 million, EBITDA increased by 10% – up to $1.52 million.
According to the holding’s report on the Warsaw Stock Exchange website on Thursday evening, its revenue for the specified period increased by 1% to $3.54 million.
KSG Agro also increased gross profit by 12% to $1.41 million, operating profit by 10% to $1.12 million.
In addition, in the first quarter of 2022, the group of companies received a net loss of $0.65 million due to the difference in exchange rates, while in January-March 2021 this factor generated $0.4 million of net profit.
KSG Agro emphasizes that in the context of the Russian military invasion of Ukraine, it continues to implement a development strategy focused on growing three winter and two spring crops and pig farming. The products of the agrarian group are basic foodstuffs and are always in demand, while the demand for it is especially high in wartime.
“The group has strengthened the security of the pig farm and temporarily moved its headquarters from Dnipro to Chernivtsi. Since most of the group’s production processes are vertically integrated, it depends only on suppliers of fertilizers, fuel and feed for pigs,” the report says.
According to it, the total capital of the agricultural producer by March 31, 2022 increased by 0.3% compared to December 31, 2021, to $23.42 million, its net debt increased by 5.5%, to $28.45 million. Thus, in the first quarter, the ratio of net debt to equity increased by 4.3% to 1.21.
The total assets of the agricultural holding for the specified period decreased by 3.8% – to $68.73 million, while long-term debt obligations increased by 3.7% – to $26.71 million, and current liabilities decreased by 16.8% – to $18, 59 million
“Since the beginning of the Russian invasion, there has been no hostilities in close proximity to the group’s assets. The group’s pig farm and its crop fields are located in the center of Ukraine, where there has not yet been hostilities. Therefore, as of the date of this report, management does not expect significant interruptions as in the spring sowing campaign, as well as in the subsequent harvesting of winter crops,” explained KSG Agro.
The number of sows of the agricultural group in the first quarter of 2022 increased by 2.2% compared to the first quarter of 2021 – up to 5.68 thousand. At the same time, the total number of animals (pigs and piglets) increased by 11.6% – up to 48.8 thousand heads.
In the crop-growing segment, the agricultural holding increased its net profit by 4.3% over the three months of this year compared to January-March 2021 – up to $0.46 million, in the livestock segment – by 27.9%, up to $0.93 million. other operations” (production of fuel pellets and thermal energy), net profit decreased by 4.3 times – to $0.22 million.
Thus, the total profit of the agricultural group in the operating segment in the first quarter of this year amounted to $1.41 million (+12% compared to the same period last year) and amounted to 77% of all net profit for this period.
For the three months of 2022, the Group of Companies increased pork sales by a third compared to January-March 2021, in dollar terms, sales amounted to $1.36 million.
“The figures above suggest that the group has a clear track record of resilience in challenging environments. From the improvement in macroeconomic performance, we can conclude that other Ukrainian companies exhibit the same character traits. A trait that seems to be in the DNA of the Ukrainian people and serves evidence that victory will ultimately be ours,” the agricultural holding’s report says.
The vertically integrated holding KSG Agro is engaged in pig breeding, as well as the production, storage, processing and sale of grains and oilseeds. Its land bank is about 21 thousand hectares.
According to the agricultural holding itself, it is among the top 5 pork producers in Ukraine.
KSG Agro in 2021 reduced net profit by 16 times compared to 2020, to $20.27 million, revenue by 44%, to $30.75 million, while doubling EBITDA to $12.28 million.
The owner and chairman of the board of directors of KSG Agro is Sergey Kasyanov.

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TASCOMBANK PLANS TO ALLOCATE UAH 200 MLN, OR 44% OF 2021 PROFIT, TO FORM RESERVES

Shareholders of TAScombank (Kyiv) at a general meeting on June 14 will consider approving profit for 2021 in the amount of UAH 456.062 million and directing 44%, or UAH 200 million, to the formation of reserves.
According to the bank’s announcement in the information disclosure system of the National Securities and Stock Markets Commission, the remaining profit of UHA 256 million is planned to be left undistributed.
The bank also plans to refuse to pay dividends to shareholders based on last year’s results.
As reported, in 2020, the bank’s net profit amounted to UAH 381.112 million.
According to the NBU, at the beginning of 2021, the main owner of TAScombank was Sergiy Tigipko (99.93% of shares).
According to the NBU, as of March 1, 2022, TAScombank ranked 16th (UAH 30.632 billion) in terms of total assets among 69 banks operating in the country.

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KSG AGRO INCREASES NET PROFIT BY 16 TIMES IN 2021

Agroholding KSG Agro in 2021 increased its net profit by 16 times compared to 2020 – up to $20.27 million, EBITDA doubled – up to $12.28 million.
According to the holding’s report on the Warsaw Stock Exchange website on Monday, its revenue for the specified period increased by 44% to $30.75 million.
KSG Agro for the reporting period doubled its gross profit – up to $12.95 million, operating profit – one and a half times, up to $10.63 million.
“The past year, thanks to our efficient work and a number of circumstances, was successful for us. Thanks to the right selection of technologies and favorable weather conditions, our crop yields set a record for the last 10 years. In the pig segment, we received good intermediate results from our long-term project for the renewal of the pig population sows of Canadian genetics Genesus”, – commented on the results of the holding’s work, the head of its board of directors Sergey Kasyanov.
According to the report, the working capital of the agricultural producer by December 31, 2021 increased by 9.5 times compared to December 31, 2020 – from $1.1 million to $10.6 million.
Last year, the agricultural holding increased profits in the crop segment by 2.2 times compared to 2020, to $18.3 million, while in the livestock sector it increased by 9%, to $11.2 million.
According to the report, the agricultural holding collected 31.02 thousand tons of wheat in 2021 (+ 72% by 2020); 18.21 thousand tons of sunflower (+55%); 8.56 thousand tons of barley (+76%); 9.33 thousand tons of corn (an increase of 3.4 times) and 0.76 thousand tons of rapeseed (a decrease of 3.6 times).
The number of sows at KSG Agro last year increased by 3% – up to 5.56 thousand. At the same time, the total number of animals (pigs and piglets) for the specified period increased by 5.5% – up to 43.7 thousand heads.
“Currently, management assesses the risk that any fighting will reach the group’s pig farm as low. The group also temporarily moved its headquarters from the city of Dnipro to Chernivtsi, close to the western border of Ukraine and away from Russian aggression,” the group said. in a group message.
As of December 31, 2021, the agricultural holding’s assets increased by 13.5% compared to the same date in 2020, to $71.44 million, while its current debt obligations decreased by 20.4%, to $25.74 million, and long-term liabilities – by 11%, up to $22.36 million.
The vertically integrated holding KSG Agro is engaged in pig breeding, as well as the production, storage, processing and sale of grains and oilseeds. Its land bank is about 21 thousand hectares.
According to the agricultural holding itself, it is among the top 5 pork producers in Ukraine.
KSG Agro in 2020 reduced net profit by 3.2 times compared to 2019 – to $1.27 million, revenue – by 11%, to $21.34 million, while increasing EBITDA by 2.9 times – to $6, 02 million
The owner and chairman of the board of directors of KSG Agro is Sergey Kasyanov.

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MOBILE OPERATOR LIFECELL IN I QUARTER RECEIVES NET PROFIT OF UAH 209 MLN

According to the results of January-March 2022, the mobile operator Lifecell LLC (lifecell) recorded a net profit of UAH 209.4 million, which is 2.52 times more than in the same period of 2021.
According to the operator’s press service on Friday, the company’s income in the first quarter of this year increased by 21.5% – to UAH 2.307 billion from UAH 1.899 billion in the first quarter of 2021.
EBITDA at the end of the specified period increased by 20% – to UAH 1.292 billion (in the first quarter of 2021 – UAH 1.077 billion). At the same time, EBITDA margin decreased by 0.7 percentage points to 56% (56.7%).
Lifecell’s capital investments for the first three months of the year increased by 24.3% – up to UAH 711.6 million from UAH 572.4 million in the first quarter of last year.
The active three-month subscriber base of lifecell increased by 11.3% – up to 8.9 million subscribers (8 million in January-March 2021).
Active three-month ARPU grew by 7.1% year on year and amounted to UAH 84.3 (UAH 78.7 a year earlier). At the same time, the 12-month active MoU decreased by 4.1% to 170 minutes (from 177 minutes in the first quarter of 2021).
“Some of our people are fighting on the front lines. The rest, in the conditions of war, do their work during rocket attacks. As soon as our army liberates the territory from the invaders, our brigades, together with contractors, go to the destroyed facilities and resume their work. That is why the first quarter of 2022 can be proud. And I’m glad to be a part of the lifecell team and a part of Ukraine”, commented Ismet Yazidzhi, CEO of lifecell, commented on the results of the quarter of 2022.
As reported, according to the results of 2021, lifecell received a net profit of UAH 610.9 million, which is 4.24 times less than in 2020 (UAH 2.589 billion), while the operator’s income in 2021 increased by 24.1% – up 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.

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