Page 62 - UKRRptMay20

June, Yurik is the board member of the state railroad responsible for attracting investment. Previously, he worked for UkraineInvest, the Finance Ministry and Blackstone.
9.2.4 ​Construction & Real estate corporate news 9.2.5​ Retail corporate news
9.2.6​ Agriculture corporate news
The EBRD has approved a $60mn long-term loan to the Fozzy Group to expand and modernize their Silpo and Fora supermarkets. ​The goal is to increase energy efficiency and to open supermarkets in towns with only traditional food markets. Silpo has 259 stores, including four Le Silpo gourmet markets. Fora has 250 stores in 70 towns.
● Kernel
Sunflower seed crushing volumes at Ukraine’s largest sunflower oil producer​ ​Kernel​ rose 11.2% y/y to 2.52 mmt in 9MFY20 ​(July 2019 - March 2020), according to its operating update published on April 23. The company’s sunflower oil sales dropped 12.4% y/y to 1.03 mmt in 9MFY20.​ ​The company’s silo storage volumes slid 1.8% y/y to 4.1 mmt, while its terminal throughput jumped 41% y/y to 4.8 mmt and its grain export rose 29.7% y/y to 6.0 mmt in 9MFY20.​ ​In 3QFY20 (January-March 2020), Kernel’s sunflower crushing volumes climbed 3.6% y/y to 940.7 kt (or a 0.2% slide qoq), while total oil sales decreased 2.2% y/y to 389.6 kt (or a 9.9% rise qoq). The company’s terminal throughput jumped 65.5% y/y to 1.9 mmt (and improved 14.5% qoq), while the company’s grain exports advanced 41.1% y/y to 2.2 mmt (or slid 4.8% qoq) in 3QFY20.
S&P Global Ratings affirmed on April 17 the long-term credit rating of Ukrainian sunflower oil producer and grain trader​ ​Kernel​ at B with a Stable outlook. It also affirmed a B issue rating on the company’s outstanding Eurobonds. The affirmation of the company’s ratings was based on its view of a more favorable business environment in Ukraine. The agency’s Stable outlook reflects its view that the COVID-19 pandemic will not hinder Kernel’s export volumes. In the agency’s view, the company will be able to stabilize its credit metrics and refinance its Eurobonds due January 2022 within the next 12 months. ​ ​S&P continues to forecast Kernel’s negative free operating cash flow (FOCF) for this year, but a lesser amount than it previously anticipated. Also, S&P anticipates that Kernel’s adjusted debt-to-EBITDA ratio will be close to 3.5x-3.8x in FY2020 vs. its previous 4.0x forecast. Also, Kernel will generate positive FOCF in FY2021, with adjusted debt-to-EBITDA of 3.0x-3.5x, in the agency's view. If the company’s adjusted debt-to-EBITDA moves closer to 3.0x, the agency could consider raising Kernel’s ratings.
● Astarta Holding
Ukraine’s leading sugar producer and crop farmer​ ​Astarta​ reported a 20% y/y increase in net revenue to €448mn in 2019, ​according to its April 14
62​ UKRAINE Country Report​ May 2020 ​ ​www.intellinews.com