Page 62 - UKRRptAug19

of debt servicing (bank interest costs) decreased from UAH7.308bn in 2017 to UAH5.016bn in 2018. Income from interest on deposits in bank accounts increased from UAH1.244bn to UAH1.691bn. The rate on loans in hryvnia increased from 18% in 2017 to 20% in 2018, in US dollars – from 7% in 2017 to 8% in 2018, in euros – remained unchanged – 2%.
JKX Oil & Gas 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.
9.2.3 Transport corporate news
Ukraine’s newest Black Sea terminal, EuroVneshTorg, is already expanding its grain handling capacity by 50%. From 2mn tons today, it is to reach 3mn tons in September. Located in Olvia, Mykolaiv region, the company, which means ‘Euro Foreign Trade,’ handles grain exports for Dutch Louis Dreyfus, French Soufflet Negoce and American Cargill. Company director Sergei Hunko says: “Today, the terminal is able to handle about 3% of all grain exports in Ukraine. In the future, we plan to increase the capacity to 8% annually.”
Ukrzaliznytsia needs to spend almost $3bn through 2025 to buy new locomotives and modernize existing ones, Anton Sabolevsky, the railroad’s director of strategic development and investment, says on the UZ website. There is also a massive need for new cargo wagons. About one third of this rolling stock, or 64,000 wagons, are over 25 years old. With EBRD loans, UZ is buying 5,000 new gondola cars this year.
9.2.4 Construction & Real estate corporate news
Dragon Capital won two ProZorro electronic auctions at the end of July committing to pay nearly $7mn for two commercial properties at prestige addresses in Kyiv and Lviv. In Kyiv’s Podil district, Dragon will pay $2.4mn for the former headquarters of Kyivan Rus bank, a 1,400 square meter building at Khoryva St. 12-a, behind the Bursa boutique hotel. In Lviv, Dragon will pay $4.5mn for a total of 945 square meters for the ground floor and basements of three buildings on Market Square – Rynok 19, 20 and 21. Lviv Mayor Andriy Sadovy said: “Transparent, open and public. Today Lviv has sold the most expensive lot in the history of the city – 945 square meters on Market Square
62 UKRAINE Country Report August 2019 www.intellinews.com