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terminal throughput increased 4.3% y/y (or a 8.2% improvement q/q) to 1.72mmt in 2Q.
Ukraine’s egg producer Ovostar 2018 trading update implies weak the fourth quarter of 2018 operations The laying hen flock at Ukrainian egg producer Ovostar Union fell 3.6% y/y to 6.38mn as of end-2018, according to its January 24 trading update. Its egg output fell 2.0% y/y to 1.625bn units in 2018. Shell egg sales rose 15.6% y/y to 1.381bn, while its average egg price jumped 15.5% y/y to $0.067 in 2018. Ovostar’s sales of liquid egg products increased 6.7% y/y to 12.27 kt and their prices increased 16% y/y to $1.45/kg in 2018. Its sales of dry egg products dropped 17.8% y/y to 2.71 kt, while their prices increased 12% y/y to $4.84/kg. The company’s annual results imply that in the fourth quarter of 2018, Ovostar produced 0.423bn of eggs (2.4% y/y higher) and sold 0.325bn in shell eggs (11% y/y lower) at an average price of $0.067 (12% y/y lower). Its the fourth quarter of 2018 sales of liquid egg products decreased 9% y/y, while prices were flat y/y in $terms. Sales of dry egg products fell 55% y/y and their prices rose 13% y/y in the fourth quarter of 2018 in $terms. “The results imply Ovostar’s the fourth quarter of 2018 revenue reached $29.5mn (down 24% y/y) and its 2018 revenue was $124mn (up 26% y/y),” Alexander Paraschiy of Concorde Capital said in a note. “ The weak the fourth quarter of 2018 operating results look worrying as the fourth quarter is typically the strongest for egg prices and sales in Ukraine. For instance, in 2016-2017, Ovostar generated 31%-39% of annual revenue and 41%-54% of annual EBITDA in the last quarter. This time, it looks like the 4Q contribution to the company’s annual revenue will be less than 25%, while the quarter’s contribution to EBITDA will be also rather weak. In turn, we see a high likelihood that Ovostar’s EBITDA will fall y/y in 2018, even though in 9M18 it reported a 42% y/y EBITDA surge.”
9.2.7 TMT corporate news
Santa Monica-based company Snap has bought the rights to all the technologies of Ukrainian startup Teleport Future Technologies , the local news outlet Liga.net reported on December 6. The agreement was signed in February 2018 and fully implemented in November. The sum of the transaction was about $8mn. Teleport became famous for the same-name application for changing hair colour. It set a record in Ukrainian, Russian and Belarusian App Store, getting more than 1mn downloads in the first 24 hours following the release, Ukrinform news agency reported on December 10. The project was created by Odesa-born Vladyslav Urazov from Odesa. He and his colleague Bohdan Matveyev gathered a team of 30 people from different countries, including Ukraine, France, the UK and Russia. In 2015, Snap bought another Ukrainian startup called Looksery. The deal was said to be done for $150mn
9.2.9 Utilities corporate news
Ukraine's leading coal and power holding DTEK has sold all its corporate rights to five electricity distributors , as part of a regulatory unbundling order. In addition, it sold some shares in DTEK Donetsk Grids, except for its 71.5% stake, which will be spun off later due to bureaucratic delays, the company said in a statement on December 10. The unbundling deal was completed on December 7. The consideration for the unbundling was paid in cash and did not exceed $100mn, the company added. As a result of the deal, DTEK will no longer hold any interest in power distribution companies. DTEK’s
77 UKRAINE Country Report February 2019 www.intellinews.com