Dragon Daily
-
May 21, 2012 download PDF
Ukraine signs cooperation agreement with China to produce engines — Positive for Motor Sich [Buy; PT $602]
Ukrainian arms export agency Ukroboronservice has signed a preliminary cooperation agreement with China to participate in the latter’s program for developing the construction of helicopter, jet and marine engines.
-
WSE-listed Ukrainian agricultural producer Industrial Milk Company (IMC) plans to increase this year’s milk output by 12% y-o-y to 20.3 kt thanks to yield growth as its milking cow herd is projected to remain unchanged
-
May 18, 2012 download PDF
Gazprom reportedly agrees to EU’s participation in potential gas transit consortium with Ukraine
Russian MP Valeriy Yazev said yesterday Russia does not object to inviting EU companies to a prospective gas transit consortium with Ukraine, but he stressed such a consortium should not only operate, but own Ukraine’s gas transportation system (GTS). The daily Kommersant quoted an anonymous source at Gazprom as saying this statement reflects the company’s position
-
LSE-listed MHP, the largest Ukrainian poultry producer, reported strong 1Q12 financials with revenues of $298m (+21% y-o-y), EBITDA of $84m (+48%) and net income of $48m (+148%). MHP’s chicken meat sales were up by 1% y-o-y to 85 kt over the period while prices surged by 31% y-o-y (flat q-o-q), to UAH 16.75/kg (net of VAT) on average. Poultry exports jumped by 70% y-o-y to 10 kt. Last quarter MHP also sold 82 kt of corn at an average price of $224/t, 19 kt of wheat at $186/t and 5.8 kt of soybeans at $397/t (all incl. VAT and in line with average market prices).
-
WSE-listed Ukrainian miner Sadovaya Group increased coal sales by 5.1% m-o-m to 78.1 kt in April as demand from power generators recovered. However, its 4M12 output remained 25.4% lower y-o-y. Sadovaya’s mining output was up 6.7% m-o-m to 42.5 kt in April (+43.9% y-o-y) while coal recovery from waste dumps was terminated due to dismantling an existing aging waste recovery factory that will be replaced by a new much more efficient complex in July. Coal trading operations expanded by 8.9% m-o-m to 35.6 kt last year, but were down 50.5% y-o-y
-
May 17, 2012 download PDF
Milkiland [Buy; PT $8.32] — Banned subsidiary close to resuming exports to Russia
Russian authorities announced they have completed final quality examination of cheese samples from two Ukrainian producers, including WSE-listed Milkiland’s Mena subsidiary, clearing 11 out of 14 batches for imports to Russia (including four batches from Mena). The head of Russia’s Federal Consumer Protection Service (Rospotrebnadzor), Gennadiy Onishchenko, said quality checks will continue as some of the submitted cheese samples did not comply with Russian food safety standards
-
WSE-listed Ukrainian miner Coal Energy yesterday issued a profit warning for 3Q12FY (January-March 2012) ahead of scheduled publication of its quarterly results on May 23, saying EBITDA was set to decrease by 32% q-o-q (or $5.4m in absolute terms). The company said it faced an unexpectedly difficult market environment over the period, which was exacerbated by severe weather, thus hampering sales of both coking and thermal coal. In particular, frozen sea ports hurt export sales, increasing the company’s thermal coal inventories by 70 kt. This resulted in a $2.0m loss on the EBITDA level (based on export coal prices during the quarter). In addition, weaker domestic demand for coking coal, caused by lower steel output, led to Coal Energy’s coking coal inventories increasing by 15 kt, depriving it of $1.2m in EBITDA terms compared to original budget assumptions.
-
May 16, 2012 download PDF
Coal Energy [Buy; PT $12.22] — April coal output up 11% m-o-m, reports significant CAPEX progress
Coal Energy reported coal output in April of 169.7 kt, up 11.3% m-o-m and 65.1% y-o-y. Its mining output stood at 134.9 kt, flat m-o-m and up 39.7% y-o-y, with thermal coal production at 106.5 kt (flat m-o-m and up 44.6% y-o-y) and coking coal output at 28.4 kt (up 0.1% m-o-m and 24.0% y-o-y). Coal volumes recovered from waste dumps surprised positively, surging by 98.2% m-o-m and 4.6x y-o-y to 34.9 kt. The company managed to beneficiate middlings at its Postnikovskaya plant and received 20.0 kt of saleable concentrate from 34.9 kt of processed raw materials.
-
May 16, 2012 download PDF
Kernel Holding [Under Review] — Reports mixed 3Q12FY results, cuts full-year guidance
WSE-listed Kernel Holding, the largest domestic sunflower oil producer, reported mixed 3Q12FY results, posting revenues of $599m (+16% y-o-y and +1% q-o-q), EBITDA of $62.5m (-31% y-o-y and -40% q-o-q) and net income of $33.8m (-57% y-o-y and -41% q-o-q).
-
WSE-listed Ukrainian agricultural producer Industrial Milk Company (IMC) has issued 1Q12 financial results, reporting revenues of $18.3m (+125% y-o-y and +28% q-o-q), EBITDA of $2.0m (+22% y-o-y) and tiny net income of $0.1m (-9% y-o-y). The net gain from changes in fair value of biological assets under the IFRS 41 Agriculture standard remained flat y-o-y at $1.7m