Business news from Ukraine


PJSC Motor Sich (Zaporizhia) in January-September 2021 received UAH 920.03 million of net profit, which is 0.7% less than in the same period in 2020.
According to the interim consolidated financial report of Motor Sich on the website, net income for the nine months of this year increased by 25.9% – to UAH 9.696 billion.
The company’s gross profit increased by 5.4% – to UAH 3.375 billion, while operating profit decreased by 35.4% – to UAH 1.078 billion.
According to the balance sheet, the company’s retained earnings at the end of September reached UAH 19.14 billion.
“During the reporting period, Motor Sich increased the share of sales of new types of equipment in the total volume of sales and continues to work towards achieving the planned profitability indicators of such projects. The diversification strategy of production is expected to offset the decrease in receipts for products that are approaching the end of their life cycle in the long term,” the report says.
According to the report, for the nine months of this year, serial aircraft engines accounted for about 56% of production and sales, and helicopters – about 10.6%. Another 8.2% of production and 7% of sales came from aircraft engine repairs.
Motor Sich is one of the world’s largest manufacturers of engines for aviation equipment, as well as industrial gas turbine units. It supplies products to more than 100 countries around the world.



Revenues from income tax in August 2021 compared to August 2020 may double, the head of the parliamentary committee on finance, taxation and customs policy, Danylo Hetmantsev, has said.
“Some 214.5% (UAH 37.1 billion) more was charged this month in income tax compared to last year. In addition, according to forecasts, in August taxpayers will pay twice as much year-on-year income tax (UAH 35.3 billion),” he wrote on Telegram.
At the same time, he stressed that the increase in revenues is not associated with the payment of tax in advance.
“No payment of income tax in advance. No calls to taxpayers with requests to transfer money to the budget. Just de-shadowing,” he said.



Revenue of Metinvest B.V. (the Netherlands), the parent company of an international vertically integrated group of steel and mining companies Metinvest, in April this year increased by 12.9%, or $178 million, compared to the previous month, to $1.555 billion from $1.377 billion. According to the published preliminary unaudited consolidated monthly results of the company’s financial statements on Wednesday, total EBITDA in April was $650 million, which is $69 million, or 11.9% more than in March ($581 million). At the same time, EBITDA from participation in the joint venture amounted to $101 million (in March – $95 million).
According to the report, adjusted EBITDA of the metallurgical division of the group for April 2021 amounted to “plus” $313 million (in March – “plus” $233 million), including $34 million from participation in the joint venture ($13 million); EBITDA of the mining division – $399 million ($402 million), including from the joint venture – $66 million ($82 million). The management company spent $7 million ($7 million).
The total revenue in April consisted of the revenue of the metallurgical division in the amount of $1.189 billion (in March – $1.045 billion), and the mining division – $563 million ($513 million). Intragroup sales were $197 million ($182 million).
The total debt of Metinvest in April decreased by $101 million compared to March, to $3.172 billion from $3.273 billion, whiles cash and cash equivalents increased by $234 million, to $1.204 billion from $970 million.
Net cash used in investing activities amounted to $60 million, and in financing activities – $156 million.
Metinvest received $46 million from the resale of square billets produced by (Dniprovsky Iron and Steel Works of ISD Corporation) in April in the amount of 75,000 tonnes. In addition, $218 million were received from the resale of 272,000 tonnes of flat-rolled products, 80,000 tonnes of long products – $58 million, and 115,000 tonnes of cast iron – $70 million.
In general, the company in April sold 440,000 tonnes of semi-finished products for $277 million, 967,000 tonnes of finished metal products for $786 million, and 183,000 tonnes of coke for $58 million.
In April, the group sold 1.779 million tonnes of iron ore for $333 million, and 178,000 tonnes of coal concentrate for $22 million.
The main shareholders of Metinvest are SCM Group (71.24%) and Smart-Holding (23.76%), jointly managing the company.
Metinvest Holding LLC is the management company of Metinvest Group.



The Solway Investment Group international investment group, owning Pobuzhsky Ferronickel Plant (PFP, Kirovohrad region), at the end of 2020, maintained its consolidated revenue at the level of 2019, $624.2 million.
According to the company’s report, its EBITDA was $167 million with a margin of 26.7% in 2020, the cost of production decreased by 6.3% yea year-over-year, to $438.9 million.
“Solway has a cash balance in excess of financial debt, and, as a result, the ratio of net debt to EBITDA at the end of 2020 is below zero,” the company said in a press release.
At the same time, it is noted: despite the problems due to the pandemic, the work of Solway remains stable and safe. They managed to prevent the closure of enterprises and avoid social and economic consequences in the regions of their activity. Continuous operation was maintained and some plants even exceeded production targets.
According to the statement, the group’s actions were based on two key priorities, protecting the health and safety of employees and local communities, and laying the foundations for sustainable development and long-term economic recovery.
Solway’s strategic vision creates circular economic returns and prioritizes long-term growth over short-term profits.
“We strive to reduce the impact of our production on the environment, to comprehensively assess its impact when planning investment projects. We effectively use natural resources, raw materials and energy locally,” the company said in the press release.
In 2020, Solway has been actively pursuing the issue of reducing its carbon footprint. One of the main assets of the group, PFP, has been implementing a project to rehabilitate gas processing plants for several years in order to reduce emissions by 99.9%. The advanced stage of the project was reached in 2020.



Ukraine in January-June 2021 reduced its revenue from electricity exports by 40.9% (by $74.921 million) compared to the same period in 2020, to $108.238 million, according to data from the State Customs Service.
According to the calculations of the Interfax-Ukraine agency, in the six months, electricity was supplied to Hungary for $50.714 million, Poland – for $31.217 million, Romania – for $14.446 million, other countries – for $11.861 million.
In particular, in June 2021, electricity was exported for $30.263 million against $5.96 million in June 2020.
In addition, during this period Ukraine imported electricity for $58.598 million against $109.004 million in the same period last year, in particular from Belarus – for $24.691 million, Slovakia – for $22.25 million, Russia – for $5.186 million, other countries – for $6.471 million.

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KPMG has announced a reduction in revenues in Ukraine in the 2020 financial year to UAH 552 million compared to UAH 561 million in 2019.
“For a year of economic and social turbulence, KPMG International announced the total annual income of KPMG firms in the amount of $ 29.22 billion for the fiscal year that ended on September 30, 2020 against $ 29.75 billion in 2019. In Ukraine, KPMG’s revenues for the 2020 fiscal year were UAH 552 million against UAH 561 million in 2019,” the company said in a release on its website.
“This applies to the business of our clients, as well as all our services in the field of audit and activities in the field of taxation and consulting. We introduce innovations and work closely with our strategic alliances to help clients transform their business into a digital format,” the press service said citing Andriy Tsymbal, the managing partner of KPMG in Ukraine.

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