Page 54 - UKRRptJun21

Cabinet dismissed the widely respected former head of state-run oil and gas company Andriy Kobolev on April 29, who claims that the state was hoping to get its hands on the $2bn in liquid funds in the company’s accounts it keeps to pay for investment and gas imports for the winter heating season.
As part of the order the government specifically excluded the state-owned hydropower company Ukrhydroenergo from the order at the request of the Minister of Economy Ihor Petrashko, who requested its dividend payout ratio to 30% to allow it to invest in modernisation. Ukrhydroenergo in 2020 increased its net profit by 28.4% (by UAH914.348mn) compared to 2019, to UAH4.137bn, Interfax reports.
The ratio was also set at 30% for the state-owned saving bank giant Oschadbank, while PrivatBank that was nationalised in 2016 and is now the most profitable bank in the sector was ordered to pay 80%, although this may be adjusted down to 75% according to previous proposals in February. Naftogaz got the highest payout ratio of 95% and was already the biggest contributor to the budget of all the companies in the state’s portfolio.
The explanatory note states that the receipt of dividends from public sector enterprises for 2020 is expected to reach UAH23.2bn ($827mn) excluding dividends from Naftogaz, which posted a loss of UAH19bn for 2020 for the first time in several years.
Ukrainian pipe maker Interpipe paid $40mn of dividends to shareholders in March this year, according to its 2020 annual report, as cited by Interfax Ukraine. "In March 2021 after the date of the final repayment (Interpipe on January 26, 2021 fully repurchased eurobonds with maturity in 2024 for a total of $309.192mn), which led to lifting restriction on the payment of dividends, the company announced and paid dividends in the amount of $40mn," the report says. The company did not declare or pay dividends in 2019 and 2020. Interpipe net profit fell 4.2-fold in 2020 compared to the previous year, to $195.12mn with a decrease in revenue by 22.9%, to $865.13mn, while operating profit increased 2.6-fold, to $212.8mn, and EBITDA by 6%, to $273mn.
8.4 International ratings
Ukraine - Rating agency
as of July 1, 2020
last change
Moodys (USD rating)
B3 (S)
15/06/20
Fitch (USD rating)
B (S)
24/04/20
S&P
B (S)
27/09/19
Ukraine’s credit ratings have been improving but the country is still rated junk by the three main agencies.
Moody’s rates Ukraine at Caa1 with stable outlook on its foreign currency debt. The local debt is also rated at Caa1.
Moody’s last upgraded Ukraine from Caa2 (Positive) in August 2017 as the country emerged from an economic meltdown that year. The lowest rating the
54 UKRAINE Country Report XXXX 2018 www.intellinews.com