Page 57 - bne IntelliNews Country Report: Ukraine Dec17

9.2 Major corporate news 9.2.1 Oil & gas corporate news
The net profit of Ukraine's state-owned gas monopolist Naftogaz increased by 19.9% year-on-year to UAH30.579bn ($1.154bn) in January-September, according to the company's report published by the National Commission for Securities and the Stock Market. Naftogaz's net revenue grew by 36.7% y/y to UAH130.649bn, while gross profit fell by 18.5% y/y, to UAH27.477bn, Interfax news agency reported on November 15. During the 2015-2017 winter period, Ukraine did not purchase natural gas from Russia and instead imported gas from Russian clients in Europe, such as Slovakia and Poland, by reverse flow, and with a mark-up in price. It has been more than 900 days since Ukraine imported any Russian gas.
The Ukrainian government greenlighted the new supervisory board of the country's gas monopoly Naftogaz on November 22, two months after the two remaining independent members of the previous board — Paul Warwick and Marcus Richards – quit citing "the government’s lack of commitment to duly implement the corporate governance reform”. September's resignation of the two board members raised concerns among donors over the government’s commitment to cleaning up corruption in big state-owned enterprises.
9.2.3 Transport corporate news
Net revenue at Ukraine’s state-owned railway monopoly U krzaliznytsia increased by 11% year-on-year to UAH55.52bn ($2.1bn) in January-September , according to the company's consolidated abridged financials published on November 10. The result was attributed to proceeds from cargo transportation, which increased 8% y/y to UAH43.19bn, which was the result of freight rates growing 15% since a May 2016 hike and a 3.2% y/y increase in freight turnover (to 141.5bn tonnes per km). At the same time, the amount of goods shipped by the company decreased 1% y/y to 250.9mn tonnes in January-September.
Ukrainian Railway (RAILUA) announced plans to buy 30 locomotives from General Electric . The agreement is expected to be signed by year-end and delivery made in 2018. Initially, the localization level will be about 10% (assembly at Kryukiv Rail Car [Not Rated]), with the target to bring local involvement to 40% by 2021. Additionally, RAILUA plans to modernize 276 diesel and 381 electric locomotives and refurbish another 34 diesel and 49 electric locomotives subject to funding availability.
9.2.5 Retail corporate news
Co-owner of online retailer Ulmart August Meyer reportedly granted a $10mn loan to the company ahead of the high-holiday season, R BC daily said on November 28 citing unnamed representatives of the retailer. Co-owner Kostygin is currently under house arrest on the accusations of defrauding Russia's largest bank Sberbank in a loan deal, and reportedly Meyer stepped in to allow Ulmart pay the creditors and suppliers. Sberbank was interested in taking over Ulmart by making use of the fraud allegations, as part of a larger
57 UKRAINE Country Report December 2017 www.intellinews.com