Page 65 - UKRRptJul22

9.2.9 Utilities corporate news
Energoatom is negotiating electricity export to Poland. State-owned Energoatom wants to supply large volumes of electricity to Poland in a year and a half, stated Energoatom President Petro Kotin. "We are already negotiating to start exporting electricity to Poland. The high voltage line connecting Khmelnytskyi NPP with Poland currently allows the company to deliver electricity at 750 kV. However, Poland insists on lowering the voltage class of this line to 400 kV," Kotin said. Unfortunately, it will be unprofitable for Ukraine to downgrade the high voltage line, as it significantly reduces its capacity. However, if there is no other option, the Ukrainian side will most likely agree to these terms. Therefore, the Energoatom President estimates that the start of large-scale electricity exports to Poland will be possible only in a year and a half.
The only uranium ore producer in Ukraine can merge with Energoatom.
State Nuclear Energy company Energoatom proposed that the government join with the Eastern Mining and Engineering Company, the only uranium ore producer in Ukraine, stated the president of Energoatom, Petro Kotyn. Energoatom proposed to merge not with the entire Uranium company but only with a part. According to Kotyn, “We will keep the part of the company that can extract uranium at a competitive price so that we can enter the world market and produce uranium fuel for our own needs. To accomplish that, Energoatom is ready to invest in production. According to recent calculations, for this uranium producer to be profitable, it would be necessary to invest about UAH 12B ($400M).
Ukrenergo has received the first €50B from the EBRD to increase liquidity. State company Ukrenergo has received the first €50M from the European Bank for Reconstruction and Development (EBRD). It is provided under credit agreements to increase liquidity, and is planned to cover debts on the ancillary services market within the next two weeks, said the adviser to the Prime Minister of Ukraine, Yuriy Boyko. The company plans to spend them on debts arising in the ancillary services market, repaying them almost completely. Almost half of these funds will be transferred to Ukrhydroenergo, Kyivteploenerho, Kharkiv CHP-5, Energoatom, and DTEK, who are among the largest recipients of funds, Boyko said in an interview with Interfax-Ukraine.
9.2.11 Metallurgy & mining corporate news
● Interpipe
Interpipe’s EBITDA fell by 63% in the first quarter. One of Ukraine’s largest steel producers, Interpipe, experienced a 63% year-over-year drop in EBITDA to $15M due to the war and production cuts. In the first three months of the year, steel production decreased by 16% year-on-year to 163,000 tons, pipes by 12,000 tons to 97,000 tons, and railway production by 43% to 23,000 tons. The company's sales decreased by 10% to 140,000 tons. Despite this, due to higher global steel prices, revenue from product sales increased by 19% to $239M - primarily thanks to a 47% increase in revenue from the sale of pipes to $181M. In addition to the loss of sales volume and additional logistics costs due to the war, the financial results were also affected negatively by the increase in the price of primary raw materials: scrap metal, electricity, and natural gas.
65 UKRAINE Country Report XXXX 2018 www.intellinews.com