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9.1.3 Transport sector news
The Ukrainian government has approved the strategic plan of Ukraine’s battered state-owned railway monopoly Ukrzaliznytsia for 2019-2023, the company’s CEO Yevhen Kravstov said on June 12. Among its key strategic goals are the satisfying customer demands, securing financial stability, modernizing and drawing investments, as well as improving safety, competitiveness and the quality of corporate governance. To fulfil its strategy, the company plans to set efficient rates, conduct reorganization, approve a long-term investment program and fight corruption. The presentation contains no numbers, with the company stating it's still developing the details. "The company drafted its strategy during the last two years, and it’s a great achievement that the cabinet finally approved it," Alexander Paraschiy at Kyiv- based brokerage Concorde Capital believes. "At least, it should mean the government is ready to help the company to set railway rates based on justified levels, or on existing market rates." He added that in its 2019 business plan, also approved by the government, the company presented some forward- looking numbers that might be a part of its strategy till 2023. These numbers foresee the company’s Ebitda rising to UAH25bn by 2023 (from UAH16.3bn in 2018), as well as capital investments of UAH78.5bn for 2019-2023, which looks underestimated. "We expect the company will provide more information on its financial outlook and needed investments in the coming months," Paraschiy added.
9.1.6 Agriculture sector news
The ministry predicts this year grain harvest will hit 70.8 million tons. The USDA predicts 72.1 million tons. Ukraine could export a record 50 million tons of grain in the 2018/2019 marketing year that ends this month, predicts Dragon Capital. With 46.1 million tons of grain exported as of June 1, Dragon sees: “exports for the full marketing year to 49-50 Mt, up 23-25% y-o-y and a
63 UKRAINE Country Report July 2019 www.intellinews.com