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operating cash flow before working capital changes plunged 69% y/y to UAH2.65bn and net cash from operations plummeted 84% y/y to UAH1.45bn. At the same time, the company reduced its purchase of new PP&E by just 11% y/y to UAH3.43bn in 1H20.​ T​ he company’s total debt increased 5% YTD to UAH36.73bn as of end-June 2020, while its net debt advanced 18% YTD to UAH33.18bn. Its ratio of net debt-to-LTM EBITDA reached 2.46x as of end-June, we estimate, up from 1.62x at the end of December
UIA is on track to carry 2mn passengers this year, ​one quarter the 8mn carried last year. From January through September, the airline carried 1.45mn passengers, the airline reports. Transit passengers, mainstays of the airline’s hub and spoke strategy, have plummeted to 22% in September, down from 50% last year.
9.2.6​ Agriculture corporate news
● Kernel
Ukraine’s largest sunflower oil producer and grain trader Kernel reported on October 5 its FY2020 EBITDA surged 28.0% y/y to $443mn.
The growth was driven by its infrastructure and trading segment EBITDA, which more than doubled y/y to $216mn, and its oilseed crushing segment, whose EBITDA rose 39.4% y/y to $152mn. Meanwhile, its farming segment EBITDA dropped 26.4% y/y to $134mn in FY2020.
The company reported its net revenue rose 6.0% y/y to $4,106mn and its net income dropped 37.6% y/y to $122mn in FY2020. As of June 30, 2020, the company’s net debt increased 41% y/y to $980mn, with most of the increase, or $287mn, due to the introduction of the IFRS 16 standard. Kernel’s net debt/EBITDA ratio was 2.2x as of end-June 2020 vs. 2.0x a year ago.
In FY2021, the company expects to process 3.5 mmt of sunflower seeds (vs. 3.44 mmt in FY2020) and to export 9.5 mmt of grain (vs. 7.9 mmt last year). Also, the company plans its CapEx at about $270mn in FY2021.
The company estimates that Ukraine will reduce the harvest of its key crops this season, including a 14% y/y decline of sunflower seeds (to 14.2 mmt) and 8% y/y slide (to 67 mmt) of total grain harvest.
The company’s board recommends to pay $21mn in dividends from last year’s profits (flat y/y, $0.25/share), to be paid "during the financial year ending 30 June 2021." Andriy Perederey: Kernel’s EBITDA was higher than our expected range of $380-390mn due to an increase of its sunflower oil margin in 4QFY20 and much stronger results of its infrastructure and trading segments. Going forward, we expect pressure on the company’s margins in its trading and processing segments this season, due to the reduced availability of its key crops on the Ukrainian market, as well as weaker results in farming, due to expected weakening in crop yields.
Ukraine’s leading farmer and oilseed producer​ ​Kernel​ reported a 5.4% y/y rise in sunflower crushing in 1QFY21 ​(July-September 2020) to 662.6 kt, according to its Oct. 26 trading update. This was a record-high volume for the first quarter, which was made possible by a large supply of sunflower seeds in
65​ UKRAINE Country Report​ November 2020 ​ ​www.intellinews.com