Page 72 - UKRRptSept19

9.2 Major corporate news 9.2.1 Oil & gas corporate news
JKX EBITDA rises 26% y/y in 1H19. JKX Oil & Gas (JKX LN) posted $45.3mn in net revenue in 1H19, or 7% more y/y, according to its interim report released on July 31. In Ukraine, its revenue increased 12% y/y to $37.2mn, while in Russia it decreased 11% y/y to $8.1mn. Recall, its hydrocarbon output advanced 49% y/y in Ukraine and decreased 4% y/y in Russia in 1H19. The company’s profit from operations improved 51% y/y to $6.6mn in 1H19, with Ukraine contributing most to the growth with $8.6mn operating profit (up 79% y/y). JKX’s operating profit before exceptional items increased 24% y/y to $8.9mn, implying its EBITDA rose 26% y/y to $17.8mn in 1H19. The company’s bottom line increased 16% y/y to $2.2mn. JKX invested $12.0mn into CapEx in 1H19, almost doubling it y/y. Most of CapEx, $8.5mn, was spent on Ukrainian assets. The company reported a cash balance of $10.6mn and total debt of $5.6mn as of end-1H19. In 2H19, the company expects to boost its hydrocarbon production in Ukraine based on the results of its newly commissioned IG142 well and its WM4 well, which it plans to drill in Ukraine starting August. In Russia, the company counts on production from Well-5, which it commissioned in late June, as well as a positive result from a workover of its non-operational Well-18.
JKX Ukraine hydrocarbon output increases 49% y/y in 1H19. JKX Oil & Gas (JKX LN) produced 10,132 boepd of hydrocarbons in 1H19, which is 16% more y/y, according to its July 12 trading update. In Ukraine, the company’s output increased 49% y/y to 5,188 boepd, while in Russia its output decreased 4% y/y to 4,932 boepd. In 2Q19 alone, the company’s output increased 19% y/y to 10,354 boepd, including a 50% growth in Ukraine (to 5,364 boepd) and 1% decline in Russia. The company also reported on its end-June liquidity position, declaring that it had $10.7mn in cash, which is $8.5mn less compared to the end-2018 balance (due to increased CapEx). This amount is still much more than a year ago ($7.6mn) and two years ago, when the company faced a potential liquidity problem with a cash balance of just $4.2mn. On top of that, JKX reported that it had received a judgment from Kyiv Appellate Court which satisfied the company’s claim to the state ($12.1mn) based on international arbitration. This was a ruling of a second-tier court which might be appealed by the government in the Supreme Court.
9.2.2 Automotive corporate news
9.2.3 Transport corporate news
Peugeot Citroen Ukraine has opened six dealerships in Ukraine this year:
Dnipro, Kharkiv, Khmelnytskyi Kharkiv, Lviv, and Zaporizhia. The French company plans to increase its sales five times this year, to 1,100 new cars and commercial vehicles.
S&P Global Ratings upgraded the credit rating of Ukrainian Railways (RAILUA) to B- from CCC+ with a Stable outlook, according to the agency’s Aug. 2 report. The key event triggering the upgrade was the successful placement of a $500mn Eurobond, which “removes pressure on liquidity,” S&P concluded. Namely, the raised money will allow the company to smoothly pay amortization on an old Eurobond over the next 12 months ($150mn in
72 UKRAINE Country Report September 2019 www.intellinews.com