Page 74 - UKRRptSept20

short term. It also reported that the terms of international trade were supportive for the company in 2Q20. In 2Q20, Motor Sich’s improved revenue by 36% y/y (and 30% qoq) to UAH2,683mn and generated UAH814mn of net profit (vs. losses of over UAH200mn in both 1Q20 and 2Q19). The boosted 1H20 revenue – which allowed the company to benefit from high operating leverage – coupled with some cost-cutting measures enabled the firm to improve significantly its operating profit. At the same time, the stronger hryvnia in 2Q20 allowed the company to reduce costs related to debt revaluation (most of its debt is denominated in foreign currency). Overall, it's positive to see the company improve its fundamentals despite an ongoing conflict about its ownership, in which Chinese and American interests are involved. Meanwhile, the company’s shares remain banned from trading, with unclear prospects of resolving the issue.
Witkowitz, a Czech manufacturer of machine-building equipment, plans to invest €50mn in Dnipro’s in Yuzhny Machine Building Plant. ​Based in the coal and steel region of Moravia-Silesia, Witkowitz plans to invest in reconstructing diesel locomotive train engines and in producing hydrogen engines.
74​ UKRAINE Country Report​ September 2020 ​ ​www.intellinews.com