Page 75 - UKRRptDec20

outflows due to Interpipe’s performance securities outstanding may amount to $20-25mn in 2022-2024, Fitch said, adding that Interpipe’s annual CapEx will average $63mn in 2020-2021 and rise to $70mn from 2022.
● Ferrexport
Ukraine’s largest iron ore pellet exporter​ ​Ferrexpo​ produced around 1,000 kt of pellets in October​, which amounts to 32.3 kt per day, or a 25.0% m/m jump, according to Concorde Capital's analysis of data reported by Interfax-Ukraine on Nov. 19. In 10M20, Ferrexpo’s pellet output rose 3.5% y/y to 9.18mmt, or 30.1 kt per day. Dmytro Khoroshun: Ferrexpo’s daily production rate rebounded strongly in October, which is positive.
● Other
Avellana Gold is investing $5mn to clean up 130,000 tons of waste in order to re-launch production at Ukraine’s only gold mine. ​The waste was left a decade ago by the previous producer at the site in Muzhievo, 70 km east of Uzhgorod, near the Hungarian border. The Cyprus-based consortium of US, UK and South African investors plans to produce gold, silver, lead, and zinc. Avellana CEO Brian C. Savage says: “The metal from our mine will be enough to produce 300,000 batteries a year and will cover the country's need for zinc imports.” Avellana plans to process 500,000 tons of ore per year, employing 500 workers. Investment was slowed by a raider attack.
Revenue at Ukraine’s leading coal and power producer​ ​DTEK​ Energy dropped 56% y/y in 9M20 to UAH31.61bn, ​according to its abridged financial report released on Nov. 27. The decline was a result of a smaller volume of electricity sold to the market by its thermal power plants (by 30% y/y) and lower (by 26% y/y) average electricity price. As a result of the falling revenue, DTEK's gross profit plummeted 82% y/y to UAH2.08bn in 9M20. The company’s operating loss amounted to UAH7.48bn (vs. UAH5.30bn operating profit a year before), mostly driven by increased losses on impairment of operating assets (most likely, receivables) to UAH4.86bn. ForEx losses of UAH6.90bn and financial costs of UAH5.10bn resulted in DTEK Energy’s negative bottom line of UAH19.12bn. The company’s EBITDA plunged 63% y/y to UAH5.32bn in 9M20, according to Concorde Capital estimates. Its operating cash flow before working capital changes dropped 61% y/y to UAH5.72bn, while net cash from operation slid 27% y/y to UAH2.20bn. Its net debt climbed 28% YTD to UAH57.40bn as of end-September, with net debt to LTM EBITDA reaching 8.7x, according to our estimates. In 3Q20 alone, the company’s revenue was UAH11.17bn (up 46% qoq, down 41% y/y) and estimated EBITDA was UAH2.54bn (up 2.8x qoq, down 23% y/y).
9.2.12 ​Other sector corporate news
Ukraine will invest $70mn next year to revive regular production of aircraft at Antonov and to “master the full production of helicopters,” Prime Minister Shmyhal told the Cabinet November 11. The money is to be part of a decade long, $1.4bn investment to revive the portions of Ukraine’s aircraft industry seen as most profitable. Emerging from an import substitution phase prompted by the 2014 break with Russia, Antonov now is building an
75​ UKRAINE Country Report​ December 2020 ​ ​www.intellinews.com