Page 74 - UKRRptFeb21
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9.2.6 Agriculture corporate news
● Kernel
Ukraine’s Kernel, the world’s largest producer and exporter of sunflower oil, crushed a record 1mn tons of oil seeds Oct-Dec, boosting oil sales by 23% y/y, to 425,340 tons. During the second half of last year, Kernel increased oilseed processing by 5%, to 1.7mn tons, and oil exports by 11%, to 721,580 tons. India and China are the two largest importers.
Kernel crushing volumes rise 5.3% y/y in 1HFY21. Oilseed crushing volumes at Ukraine’s largest sunflower oil producer and grain trader Kernel rose 5.3% y/y to 1.66mmt in 1HFY21 (July-December 2020), according to its operational update published on Jan 21. The company’s total edible oil sales swelled 11.4% y/y to 721 kt in 1HFY21. Kernel’s inland silos received 3.63mmt of grains and oilseeds, or a 9.0% y/y decrease, while its export terminal throughput jumped 47.2% y/y to 4.25mmt in 1HFY21. The company’s grain exports from Ukraine rose 16.4% y/y to 4.52mmt in 1HFY21.
In 2QFY21, the company’s oilseed crushing volumes climbed 5.3% y/y to 1.0mmt (or a 51.1% qoq jump). Edible oil sales grew 22.8% y/y to 722 kt, or 43.6% more qoq. Kernel’s inland silos received 2.4mmt of grains and oilseeds (16.8% more y/y and 89.6% higher qoq) and its terminal throughput advanced 40.8% y/y to 2.4mmt (or 27.5% higher qoq) in 2Q FY21. The company’s grain exports rose 5.9% y/y to 2.4mmt, or 12.7% higher qoq in 2QFY21.
Andriy Perederey: The company’s oilseed processing volumes improved due to the launch of tolling operations on third-party capacities in the Kharkiv region, while Kernel’s oilseed crushing plants operated in full capacity. The company’s oil sales jumped in 2QFY21 vs. 2QFY20 due to a low comparison base. The company boosted its terminal throughput volumes due to phased starts of operations at a new grain terminal in Chornomorsk.
And so, we expect that the company’s infrastructure and trading segments will be key EBITDA sources in 1HFY20. Also, the oilseed processing and sales segment will have a positive dynamic in FY2021 and will support the company’s EBITDA in FY2021 due to supportive prices of vegetable oils. So we estimate the company’s total EBITDA in the range of $430-440mn in 1HFY21.
The EBRD is considering approving next month an $80mn loan to Kernel
for the purchase, storage, processing, transportation and export of agricultural goods. As of last June, Kernel’s net debt was $980mn.
● Astarta Holding
Sugar sales at Ukraine’s leading sugar producer and crop farmer Astarta swelled 33% y/y to 81.2 kt in 4Q20, according to its January 27 trading update. Its sales of three key crops (wheat, corn and sunflower) amounted to 332.9 kt (2% less y/y) in 4Q20. Sales of soybean oil and meal dropped 20% and 12% y/y, respectively. Its milk sales climbed 2% y/y to 22.3 kt. The average price of sugar surged 37% y/y to UAH13.2/kg, the average prices of key crops advanced 13% y/y, while the average price of soybean products jumped 50% y/y in 4Q20. Based on the company’s results, Astarta sold 328.5
74 UKRAINE Country Report February 2021 www.intellinews.com
