Page 74 - UKRRptDec19

pipe and railway wheel producer Interpipe (INTHOL) conducted its first conference call on November 12 in, which it discussed its 1H19 operational and financial results. ​ ​ ​ ​Among the information that was not disclosed on October 16 ​in Interpipe’s condensed financial release​ were sales volumes, which dropped for pipes 8% y/y in 1H19 to 317 kt and rose by 1% y/y to 96 kt for wheels.​ ​ ​ ​The drop in pipe sales volumes was due to an 11% y/y decrease in seamless pipe sales volumes to 261 kt in 1H19, while welded pipe sales volumes rose 6% y/y to 56 kt. Seamless pipe sales volumes fell due to lower drilling activity in Ukraine and a ban on Ukrainian pipes in Russia that took effect in April. ​ ​ ​ ​Europe pipe sales also declined, the reason being the quotas introduced by the EU Commission. However, Americas pipe sales volumes rose 33% to 82 kt, according to Concorde Capital estimates, which the company attributed to stronger cooperation with OCTG clients and welded line pipe sales.​ ​ ​ ​In the wheel segment, the volume of sales to Europe jumped 44% y/y to 26 kt, according to Concorde Capital estimates, which compensated a 27% slide in sales in Ukraine to 23 kt. However, Interpipe noted on the call that the indicators that might be considered leading for railway wheel demand, namely, railcar freight rates and prices for new railcars, have demonstrated weakness recently, which might lead to eventual declines in demand and prices for Interpipe’s wheels.​ ​ ​ ​The company said it does not plan to invest in its working capital in 2020 because of its strong such investments already this year, particularly in 1H19.
Interpipe​ pipe output drops 8.7% in 10M19. ​ ​Pipe production at Ukraine’s largest producer Interpipe (INTHOL) was 1.31 kt per day (or 40.5 kt per month) in October, a 7.3% m/m drop, according to Concorde Capital’s analysis of a November 25 news report by Interfax-Ukraine.​ ​​ ​Interpipe Niko Tube output jumped 14.0% m/m to 0.75 kt per day in October. Interpipe NTRP pipe production lost 16.8% m/m to 0.35 kt per day. Interpipe NMPP output plunged 37.8% m/m to 0.20 kt per day.​ ​​ I​ n 10M19, Interpipe’s pipe production was
589.6 kt (1.94 kt per day), or 8.7% less y/y.​ ​
Interfax-Ukraine said that Interpipe Steel’s output of crude steel was 1.39 kt per day in October, a 24.3% m/m plunge. The 10M19 steel output at Interpipe Steel was 733 kt, a 10.9% y/y loss.
● DTEK
DTEK​ Energy coal mining drops 7.4% in 9M19.​ ​Ukraine’s leading coal and power holding DTEK Energy (DTEKUA) produced 18.45 mmt of ROM coal in 9M19, Concorde Capital calculated based on sector-wide data provided by the Energy Ministry. This is 7.4% less y/y and 11.3% short of plan. In October alone, DTEK mines produced 1.95 mmt of coal, which is 11.4% less y/y but 8.6% more compared to September(onadailyaveragebasis).​T​ otalminingofsteamcoalin Ukraine dropped 11.3% y/y to 20.52 mmt in 9M19, with DTEK’s share in total output rising to 90% from 84% a year before.
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​In a separate news report,
9.2.12 ​Other sector corporate news
Ukraine should be able to veto the Chinese acquisition of aeronautics engine manufacturer Motor Sich​, head of Ukroboronprom supervisory board Aivaras Abromavicius said in an interview with the ​epravda.com.ua​ news site published on Nov. 28. “I am sure that in such a sensitive sphere as
74​ UKRAINE Country Report​ December 201 ​ ​www.intellinews.com