Page 61 - bne IntelliNews Country Report: Ukraine Dec17

tonnes) and a 52% fall in long products (to 691 tonnes) due to a lack of square billets. Total iron ore concentrate production declined 11% y/y to 20.44mn tonnes at Metinvest’s subsidiaries during in January-September.
Ukraine's largest steelmaker Metinvest reported a 10.8% m/m increase in iron ore concentrate production at its subsidiaries in October. Controlled by the country's richest oligarch Rinat Akhmetov, iron ore production stood at 2.71mn tonnes in October, according to estimates of Kyiv-based brokerage Concorde Capital. The result is a 10.8% month-on-month increase, or a 7.2% m/m rise on a daily average basis. The holding’s pellet output was 777 tonnes in October, an 18.4% m/m drop (or a 21.0% m/m decline on a daily average basis). In January-October, Metinvest’s attributable output of iron ore concentrate dropped 6.7% year-on-year to 26.4mn tonnes.
Ukraine's leading coal and power holding DTEK , controlled by oligarch Rinat Akhmetov, boosted its mining of hard steam coal 9.2% year-on-year to 18.8mn tonnes, the company said on November 8. DTEK’s mines produced 1.9mn tonnes of coal in October, up from 1.8mn tonnes in September. Earlier this year, DTEK lost its assets, specifically, anthracite-producing mines located in revel-controlled territories of the Donbas region. According to the company, its assets located on the territory represents 8% and 25% of its capacity in power generation and coal mining, respectively. These assets are also responsible for 10% of DTEK's power transmission. Now, DTEK controls only three mines in Ukraine, all of, which produce hard steam coal. Out of its eight remaining thermal power plants, five are designed to burn hard steam coal and three burn anthracite, according to the Concorde Capital brokerage in Kyiv. Concorde's Alexander Paraschiy estimates DTEK’s October coal production was 1.86mn tonnes, which is 1.2% better than September (in daily average terms) but 1.2% less y/y.
Ukraine's largest steelmaker Metinvest , controlled by the country's richest oligarch Rinat Akhmetov, has won two tender lots for rail supplies to the country's state-owned railway monopoly Ukrzaliznytsia , which should be positive for Metinvest’s profit and cash flows. The steelmaker will provide 26 tonnes of rails at a price of $814 per tonne for a total of $21.2mn of revenue, according to our analysis of the tender documents. The rails must be supplied by the end of the year.
9.2.11 Other sector corporate news
Turboatom (TATM), the largest CIS producer of power turbines and majority controlled by the state, reported 9M17 sales of $57m (+15% y-o-y), EBITDA of $30m (+13%) and net income of $24m (+2.4%). The company had a net cash position of $30m as of end-9M17 (vs. $25m at end-June and $43m at end-2016).
Motor Sich (MSICH), the leading producer of aircraft and helicopter engines in the CIS, reported unaudited 3Q17/9M17 results. The 9M17 figures were strong, with sales up 16% y-o-y to $344m, EBITDA +14% to $141m, and net income +31% to $97m. Yet the implied 3Q17 results were weak in both q-o-q and y-o-y terms: sales down 30% q-o-q and 8% y-o-y, EBITDA -38% and -27%, and net income -63% and -50%, respectively (see table below). End-9M17 net debt totaled $2.6m vs. $5.0m at end-June and $2.7m at end-2016.
61 UKRAINE Country Report December 2017 www.intellinews.com