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cash position: as of end-June 2018, its cash balance was $7.49mn, or 87% higher y/y.
Ukraine’s JKX boosts hydrocarbon production 1.5% y/y in the first half of 2018 JKX Oil & Gas produced 8,728 boepd of hydrocarbons in the first half of 2018, or 1.5% more y/y, according to its July 5 trading update. The increase was fuelled by 10.6% higher output in Russia (to 5,146 boepd), while production in Ukraine fell 7.3% y/y to 3,491 boepd. Improved performance in Russia was due to a low comparison base (as one of the wells was idle a year ago). In the second quarter of 2018, the company produced 8,707 boepd of hydrocarbons, which is 0.5% less qoq but 12.1% more y/y. “Importantly, JKX managed to boost production in Ukraine by 5.6% qoq to 3,585 boepd, which is a result of its newly commissioned well M158 in late March, as well as the successful work over of three wells leased from the state (R22, EM52 and R3). Nevertheless, JKX’s Ukrainian output decreased 0.9% y/y in the second quarter of 2018. The company is going to commission another state-leased well (NN10) shortly. On top of that, the company nearly completed drilling of its E308 well at its most successful Elizavetivske field,” Concorde Capital said in a note. In Russia, JKX mined 5,030 bopepd in the second quarter of 2018, which is 4.4% less q/q (due to a natural decline of output at existing wells) but 26% more y/y (due to a low comparison base).
9.2.3 Transport corporate news
The European Bank for Reconstruction and Development (EBRD)'s board of directors has approved a $150mn loan tranche for Ukraine’s state-owned railway monopoly Ukrzaliznytsia , according to the multinational lender's official Artem Shevalev. Shevalev wrote on his official Facebook page on June 4 that the loan will allow the company to purchase about 6,500 gondola cars at a total value of $260mn. Among the preconditions for the loan, Shevalev listed the start of work of the company’s new supervisory board, approval of an action plan on corporate governance and deregulation of railcar rent component. The loan will be provided on market conditions, without state guarantees.
Airbus Helicopters has signed a $555mn contract with the Ukrainian Ministry of Interior for the purchase of 55 civil helicopters destined for search and rescue (SAR), public services, and emergency medical service missions in the country, the company said in a statement on July 14. President Petro Poroshenko said the same day that Ukraine is still reflecting Russia's aggression, and "the amount allocated to this contract is very significant". Meanwhile, Ukrainian Prime Minister Volodymyr Groysman said in his official Twitter account that the contract's amount is €555mn. "We would ask that part of this contract, part of the helicopters, to be allocated for the armed forces of Ukraine," Interfax news agency quoted Poroshenko as saying. "We have a full and united position of the Ukrainian side. I would be very grateful if we could make this detailing during the implementation of the contract." The 55 aircraft include 21 repurposed H225s, and 10 brand new H145s and 24 H125. The heavy twin-engine H225 aircraft ordered by Ukraine, for which France currently holds economic rights, will be repurposed to suit public services and search and rescue missions for which the aircraft is recognised as a reference helicopter. The H225 features include a takeoff sequence of less than five minutes, an extra long-range capability with auxiliary fuel tanks, and its world-renowned autopilot and upper SAR modes. The first H225 helicopters
54 UKRAINE Country Report August 2018 www.intellinews.com