Business news from Ukraine

UKRAINE’S SPACE INDUSTRY BOOSTS PRODUCTION BY 12.7% IN FIRST SIX MONTHS OF 2018

Enterprises comprising Ukraine’s rocket and space industry boosted production by 12.7% in the first six months of 2018 compared to the same period last year, to UAH 1.58 billion.
Sales of the enterprises in the first six months of 2018 increased by 12.3%, to UAH 1.57 billion, while the total volume of gross output amounted to UAH 2.11 billion, the press service of the State Space Agency of Ukraine (SSAU) has said.
The agency said exports to the EU, United States and other countries amounted to UAH 877.4 million, or 90.1% of all exports.
During the period, five Ukrainian space enterprises posted profits: open join-stock company Kharton had UAH 2.99 million in net profit, state-owned Yuzhny machine-building plant named after Oleksandr Makarov (Yuzhmash, or Pivdenmash) reported about UAH 130,000 in net profit, while the net profit of production association Kyivprylad was UAH 20,000. State-owned Scientific and Research Technological Institute of Instrument Making and state-run Ukrkosmos were also in the black, the press service said.
The average number of full-time employees of the industry as of the end of the second quarter of 2018 (July 1, 2018) was 16,745 people, 0.3% less than in the first quarter.
“The main reason for the reduction in the number of staff remains relatively low wages due to the underloaded capacity of enterprises and the transfer of some of them for a shorter workweek, or other forms of optimization of labor costs,” the report says. The nominal average monthly salary in the industry grew by 8.1% compared to the beginning of the year and amounted to UAH 8,223.1 in the first half of the year, the SSAU said.
As reported, at the present time there are 26 enterprises and organizations of the rocket and space industry in the management of the SSAU.
In 2018, the state budget for the rocket and space industry envisages UAH 2.03 billion in the state budget, which is 30% less than in 2017. Of the total financing of the sector through the general fund, some UAH 1.55 billion (79%) should be spent on servicing of debt obligations on earlier borrowed loans for the implementation of international projects, in particular, for servicing a loan raised under the project “Creation of the National Satellite Communication System.” In 2017, some 61.5% of the industry budget (UAH 1.5 billion) was allocated from the national budget for these purposes.
For the first time over the years, there is no provision for financing a national targeted research and engineering space program in the 2018 state budget.
Also, the country’s budget for 2018 envisaged no funding for defense state programs and projects implemented by space industry enterprises under the SSAU. The budget of the industry in 2017 allocated UAH 941.2 million (32.3% of the total sum) under such programs.

UKRAINIAN SPACE INDUSTRY INCREASES PRODUCTION IN Q1 BY 12.7%

Enterprises of the space industry of Ukraine in January-March increased production in comparison with the same period in 2017 by 12.7%, to UAH 884.4 million, the press service of the State Space Agency of Ukraine has reported. The volume of sales in the first quarter increased by 12.3%, to UAH 892 million. The total volume of gross output for the reporting period of 2018 exceeded UAH 1.462 billion, comparative figures for the last year’s reporting period are not available in the report.
According to the State Space Agency of Ukraine, the volume of the rocket and space industry’s gross output in the first quarter of 2018 rose by 21.2% compared to the same period in 2017, to UAH 52.2 million. Work under the state order was conducted by two enterprises: Pavlohrad Chemical Plant and Ukrkosmos.
The share of exports in the total volume of sales for the reporting period was 32%, while in the total volume of exports some 84.7% to the EU, the United States and other countries.
According to the data provided, seven enterprises posted profit in the first quarter. In particular the net profit of state enterprise Pavlohrad Chemical Plant amounted to UAH 33.66 million, that of PJSC Hartron some UAH 630,000, state enterprise Pivdenmash some UAH 100,000, Dniprovsky Design Institute some UAH 100,000, and Scientific and Research Technological Institute of Instrument Making some UAH 100,000.

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SPACE INDUSTRY OF UKRAINE EXPORTS ABOUT 50% OF GOODS/SERVICES IN 2017

Enterprises of the Ukrainian space industry exported about 50% of manufactured products and services in 2017, the press service of the State Space Agency of Ukraine (SSAU) has reported. According to a report posted on the website of the agency, in the total volume of sales of the industry’s goods and services worth UAH 4.7 billion, the share of exports amounted to 49.3%, or 8.1% more than in 2016.
According to the press service, the share of exports to the U.S., EU countries and other countries amounted to 92.9%, or UAH 2.11 billion, in total exports.
Export growth for the reporting period was demonstrated by export-oriented enterprises, in particular, Arsenal Special Device Production State Enterprise – 57.4%, Pavlohrad Chemical Plant – 139.7%, Pivdenne Design Bureau – 19.6%, and PJSC Hartron – 63%.
According to the agency, enterprises operating in the space industry increased production by 26.3% in 2017 year-over-year, to UAH 4.6 billion. Gross production grew by 22% and exceeded UAH 5.49 billion. The growth of sales at the end of the year amounted to 24%.
SSAU currently manages 26 enterprises and organizations of the space industry. The state budget for 2017 envisages UAH 2.91 billion for financing the space industry, or 14.2% less than in 2016. In the total amount of financing, 61.5% of the funds from the state budget’s general fund are envisaged for the fulfillment of debt obligations on previously attracted loans for the implementation of international industry projects.

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