Page 68 - UKRRptOct19

9.2.7​ TMT corporate news
SCM and Raga reach settlement in Ukrtelecom dispute. ​A subsidiary of the System Capital Management​ (SCM) Holdings that belongs to Ukraine’s biggest oligarch Rinat Akhmetov and Raga Establishment Ltd. “formally and finally settled the dispute” concerning the sale of Ukrtelecom in 2013, SCM's press service reported on October 1. The deal means that all the ongoing legal proceedings shall be discontinued, the press release clarified. No other details of the settlement have been disclosed. Raga claimed earlier it sold a 92.8% stake in Ukrtelecom to SCM for an agreed price of $860mn, while it only received payment of $100mn. In May 2018, the London arbitration court ruled in favour of Raga, thus making SCM liable to pay about $821mn in compensation. As a part of litigation, some of SCM's Cyprian assets were frozen between December 2017 and June 2018.
9.2.9 ​Utilities corporate news
9.2.11 ​Metallurgy & mining corporate news
Ukraine’s leading coal and power holding DTEK Energy provided its semi-annual financials on September 27, based on, which its top line improved 24% y/y ​to UAH53.43bn and adjusted EBITDA decreased 11% y/y to UAH11.03bn. The holing’s bottom line dropped 47% y/y to UAH3.34bn. The growth rates of its key financial indicators were adjusted for the fact that in 2018, the holding lost control over its Kyiv-based power-generating assets and spun off its power distribution assets.
● Metinvest
Metinvest​ Ukraine’s largest steelmaker, released its 1H19 financial results on September 16. The holding’s revenue lost 6% y/y to $5,818mn, EBITDA dropped 33% y/y to $890mn, and net profit fell 39% y/y to $408mn. Its EBITDA margin decreased 6pp y/y to 15%, and its net margin slid 4pp to 7%. EBITDA of Metinvest’s mining segment rose 24% y/y to $791mn in 1H19, while that of its metallurgical segment plunged 83% y/y to $132mn. Operating cash flows before working capital dropped 31% y/y to $792mn. Net cash from operations increased 25% y/y to $570mn. Operating cash outflow due to changes in working capital plunged to $2mn from $356mn in 1H19, as a $390mn outflow due to receivables was compensated by inflows of $120mn due to inventories and $271mn due to payables in 1H19. Metinvest’s CapEx amounted to $482mn in 1H19, up 15% y/y, driven by a 52% y/y jump in its mining segment’s CapEx to $222mn. In 1H19, Metinvest paid $31mn in dividends to its owners (the first half of 2018: $29mn). In 1H19, Metinvest provided $82mn in a loan (likely with 9% interest) to its majority owner SCM. Net debt stood at $2,474mn at June 30, flat ytd, and the ratio of net debt to last-12-months EBITDA amounted to 1.2x, inching up from 1.0x at the end of 2018.
Metinvest affiliate Pokrovske Coal output jumps 18% in 8M19 ​Private joint stock company Pokrovske Coal produced 15.7 kt of raw coking coal per day in August, a 0.8% m/m drop, according to Concorde Capital’s analysis of Energy Ministry data, as reported by Interfax-Ukraine on Sept. 11. In 8M19, Pokrovske Coal produced 3.15mmt of coal, a 17.8% y/y jump.
68​ UKRAINE Country Report​ October 2019 ​ ​www.intellinews.com