Page 69 - UKRRptOct19

Metinvest​ EBITDA plunges 50% m/m in June ​EBITDA at Ukraine’s largest steelmaker Metinvest plunged 50% m/m in June to $94mn, according to its monthly results published on Sept. 16. The holding’s revenue lost 3.6% m/m to $982mn. Metinvest’s operating cash flow before working capital changes dropped 6.0% m/m to $141mn, whereas cash flow from operations (before profit tax and interest) jumped 8.5x m/m to $196mn in June. The holding’s cash outflow from investment activities slid 3.3% m/m to $89mn, while outflow from financing activities amounted to $3mn and its end-of-month cash balance jumped 45.3% m/m to $279mn. Its gross debt rose $17mn m/m to $2,753mn. Metinvest’s metallurgical segment EBITDA plunged in the red to $-20mn in June from $31mn in May, while its mining segment EBITDA lost 28.8% m/m to $114mn.
● Interpipe
Interpipe pipe output drops 3% in 8M19.​ Pipe production at Ukraine’s largest producer Interpipe (INPIP) was 1.65 kt per day (or 51.1 kt per month) in August, a 13.8% m/m drop, according to Concorde Capital’s analysis of an Sept. 18 news report by Interfax-Ukraine. Interpipe Niko Tube output dropped 18.6% m/m to 0.73 kt per day in August. Interpipe NTRP pipe production lost 11.8% m/m to 0.55 kt per day. Interpipe NMPP output slid 5.9% m/m to 0.36 kt per day. In 8M19, Interpipe’s pipe production was 507.4 kt (2.09 kt per day), or 2.6% less y/y.
● Ferroexport
Kostyantyn Zhevago, the CEO and majority owner of Ukraine’s largest iron ore pellet exporter Ferrexpo (FXPO LN), was served ad absentia on September 27 with a notice of suspicion related to the embezzlement ​of $113mn from the Finance & Credit (F&C) bank in 2015, according to a September 27 post on the Facebook page of Olha Varchenko, the deputy director of Ukraine’s State Bureau of Investigations (DBR). Zhevago was not present to receive the notice because he is undergoing medical treatment abroad, according to a September 27 report by epravda.com.ua, a news site that cited Zhevago’s press service. Zhevago has informed Ferrexpo’s board that he has not received a notice of suspicion in accordance with Ukrainian law, according to a September 30 Ferrexpo news release entitled “Response to allegations made on social media." The public dissemination of untrue information regarding Zhevago jeopardizes the future implementation of major investment projects in Ukraine, Ferrexpo’s release said, adding that Zhevago strongly denies any allegations of wrongdoing.
9.2.12 ​Other sector corporate news
After four years and $75mn in investment, Biopharma, a manufacturer of blood preparations,​ in September, a German-designed fractionator plant in Bila Tserkva, 100 km south of Kyiv. Part of Biopharma’s ambition to become one of the world’s top five blood producers, the EU-equipped plants is capable of processing up to 1mn liters of plasma a year. Investors include Vasily Khmelnitsky, Horizon Capital, and Western NIS.
69​ UKRAINE Country Report​ October 2019 ​ ​www.intellinews.com