Page 72 - UKRRptNov20

14%, while the share of sales to Europe gained 9pp to 35% and the share of sales to CIS countries slid 2pp to 43%. Regarding production volumes, which might be indicative of sales volumes in future months, Interpipe’s pipe production inched up 1.5% m/m to 41.4 kt in September, while railway product output gained 10.9% m/m to 15.7 kt. Steel production inched up 1.2% m/m in September to 64.7 kt.
● Ferrexport
Ferrexpo daily pellet output drops 18% m/m in September​.​Ukraine’s largest iron ore pellet exporter​ ​Ferrexpo​ produced 774 kt of pellets in September, which amounts to 25.8 kt per day, an 18.4% m/m drop, according to Concorde Capital's analysis of the company’s 3Q20 production report released on October 6.​ ​In 9M20, Ferrexpo’s pellet output amounted to 8.13 mmt (29.7 kt per day), or 3.1% more y/y.​ ​Ferrexpo noted in its report that a planned pelletizer maintenance in early September resulted in a reduction of its production volumes.
● Other
ArcelorMittal Kryvyi Rih to build the new pellet plant amounted $250mn.
ArcelorMittal Kryvyi Rih held a groundbreaking ceremony for the construction of a new pellet plant. The investment in the construction project amounted to $250mn. The launch of a new production facility will allow the gradual decommissioning of two existing sinter facilities of the enterprise. Together with the large-scale reconstruction and modernization, it will significantly improve the environmental situation in the region. Total emissions will be reduced by 78 thousand tons, and CO2 emissions will be reduced by 800 thousand tons per year.
Ukraine’s leading coal & power producer​ ​DTEK​ Energy produced 14.18 mmt of ROM coal in 9M20, or 14% less y/y​, according to a sector-wide report provided by the Energy Ministry. In September alone, the company produced 1.77 mmt of coal, which is 1.9% more y/y and 2.1% less m/m, on a daily average basis. Aggregate coal mining in Ukraine slid 8% y/y to 21.03 mmt in 9M20, with the decline at state-controlled mines at 25% y/y. Recall, DTEK Energy initiated debt restructuring talks in late March, with no apparent progress in negotiations with its creditors, so far. It also faced problems with demand for some portion of its coal mined, which forced it to suspend coal mining at two companies – that it leases from the state – in April-July. DTEK is also seeking now to terminate its long-term lease agreement of its Dobropillia mine, whose coal-mining capacity is excessive for DTEK’s internal needs.
9.2.12 ​Other sector corporate news
Motor Sich​ further improves P&L in 9M20.​ ​Ukraine’s leading aeronautics firm Motor Sich reported a 20% y/y increase in net revenue to UAH7.70bn in 9M20. Its EBITDA surged 14.5x y/y to UAH2.41bn and its bottom line was UAH0.93bn (up from negative UAH0.53bn a year before) in 9M20. The company’s net debt decreased 13% y/y to UAH1.49bn as of end-September. The company’s cash flow from sales of finished goods dropped 22% y/y to UAH2.44bn, while cash prepayments for goods gained 32% y/y to 5.59bn in 9M20.​ ​In 3Q20 alone, the company reported net revenue of UAH2.96bn (up 27% y/y and up 10% qoq) and EBITDA of UAH0.89bn (up 14.9x y/y, down
72​ UKRAINE Country Report​ November 2020 ​ ​www.intellinews.com