Page 63 - UKRRptJune18

31. "However, despite the m/m increase in steel prices for most of Metinvest’s products (pig iron by 1%, slabs by 2%, billets by 1%, finished products by 3%), the Ebitda margin of the holding’s metallurgical segment decreased again m/m, to 12% in March from 15% in February." The expert believes that one of the factors behind the m/m drop in the Ebitda margin of Metinvest’s metallurgical segment in March could be the increase in the share of semi-finished products to 29% of the segment’s revenue from 19% in February. The Ebitda margin of Metinvest’s mining segment rose m/m to 41% from 35% in February. Metinvest’s March cash outflow due to accounts receivable was an enormous $255mn, well above the recent high of $205mn in January. One of the reasons behind Metinvest’s poor cash performance in March likely was the holding’s preparation for the refinancing and restructuring deal , the preliminary results of, which became known in April, Khoroshun added.
The attributable production of iron ore concentrate at Ukraine's largest steelmaker Metinvest increased by 4.6% month-on-month on a daily average basis to 2.73mn tonnes (90.8 tonnes per day) in April, according to calculations published by Kyiv-based brokerage Concorde Capital on May 29. The company’s pellet output was 958 tonnes in April, a 9.0% m/m gain (or a 12.6% m/m increase on a daily average basis). Concentrate production at Inhulets Iron Ore rose 1.1% m/m in April to a daily rate of 31.3 tonnes. Production at Northern Iron Ore gained 13.9% m/m to 33.4 tonnes per day. Production at Central Iron Ore slid 2.4% m/m to 10.8 tonnes per day, whereas output at Southern Iron Ore dropped 0.9% m/m to 33.3 tonnes per day. In January-April, Metinvest’s attributable output of iron ore concentrate rose 2.1% year-on-year to 10.71mn tonnes. Concorde forecasts Metinvest’s 2018 attributable iron ore concentrate output to rise by up to 2% y/y to 32mn-32.5mn tonnes.
9.2.13 Other sector corporate news
Ukraine's major arms exporter boosts profit by 69% in the first quarter.
The state-owned company Ukrspecexport, Ukraine's main exporter of military weapons and equipment (up to 85% of all military-technical cooperation), increased its net profit in the first quarter of 2018 (y/y) to UAH64.34mn ($2.4mn) from UAH38mn (US$1.4mn). Net income from sales of products totalled UAH364.1mn ($13.8mn) y/y, which was 7.85% up from UAH337.6mn ($12.8mn) y/y, according to UNIAN. Ukrspecexport increased its net profit by 1.33 times in 2017 to UAH144mn ($5.5mn) from UAH108mn ($4.1mn).
Russia's major fertilizer producer EuroChem has exited the Ukrainian market by selling its 100% stake in Ukrainian distribution subsidiary, Agrocentre EuroChem-Ukraine.These companies are supplying nitrogen fertilizers (ammonium nitrate) to the rebel-held territories of the Donetsk and Luhansk regions without customs clearance via the closed checkpoints or checkpoints on the Russian-Ukrainian border forbidden by the Ukrainian government.
Earlier, Ukraine also imposed sanctions against Agrocenter EuroChem-Lipetsk, Agrocenter EuroChem-Krasnodar, Agrocenter EuroChem-Nevinnomyssk, Agrocenter EuroChem-Volgograd, Agrocenter EuroChem-Orel, EuroChem Trading Rus, Nevinnomyssky Azot, MCC EuroChem and Novomoskovsk joint-stock company Azot.In addition, Kyiv imposed sanctions against Galaktika, Rusagrokhim, Bosnis, Agrokhimuniversal, Agrocenter-Belgorod, Agrochemcenter-Tambov,
63 UKRAINE Country Report June 2018 www.intellinews.com