Daily monitor

Mining Machines Holding, owner of Donetskgirmash [DGRM UZ] and Druzhkivka Machinery [DRMZ UZ] has increased sales by 115% YoY since the year beginning and plans increasing it further to USD 95 mln in 2015 after last year’s USD 15 mln.

Mriya [MAYA GR, BUY] decided to postpone its debut Eurobond issue to 1Q11. This decision was made due to unfavorable debt market conditions. Recently Fitch & S&P have assigned “B-” and “B” ratings to the planned Eurobond issue. The planned volume of the issue is USD 300 mln.

Yesterday the Parliament approved the new Tax code, which raises the oil and gas condensate and natural gas royalty fees by 40%. It was also noted that the further increase may follow soon. Moreover, the fee for extracting hydrocarbons is also raised by 18.5%. The Tax code is effective from January 1, 2011.

In January-October Ukraine’s electricity exports fell 0.8% to 3.2 bln kWh. In monthly terms the exports doubled in October to 420.5 mln kWh as a result of restored supplies to Hungary.

By the year end International Monetary Fund (IMF) and Ukrainian government will carry out first review of the stand by credit agreement and Ukraine is likely to get the second tranche of the IMF credit amounted to USD 1.6 bln, including USD 1 bln to support government budget.

MHP [MHPC LI, BUY] posted strong financial 9M10 results. The Company’s net sales increased by 35% YoY to USD 676 mln (9M09: USD 502 mln). EBITDA increased by 18% YoY to USD 232 mln (9M09: USD 197 mln). EBITDA margin remains high, however it decreased to 34% from 39% in 9M10. Net income grew by 54% YoY to USD 158 mln versus USD 103 mln in 1H09 partially due to the foreign currency gains.

Ukrainian industrial output recovery rate remained at 10.2% in October, which equals 10.7% YoY in 10M10.

Kernel [KER PW, U/R] posted its strong financial results for FY1Q11 (July 2010 – September 2010). According to Company’s data, net revenue increased by 44% YoY to USD 345.4 mln (FY1Q10: USD 240.3 mln). EBITDA grew by 89% YoY to USD 67.5 (FY1Q10: USD 35.8). The EBITDA margin increased by 4.7 p.p. to 19.5% in FY1Q11. Net income decreased by 13% YoY to USD 33.9 mln (FY1Q10: USD 39.2 mln), while operating profit grew by 95% YoY to USD 59.7 mln versus USD 39.2 mln in FY1Q10. Net margin fell by 6.5 p.p. YoY to 9.8% (FY1Q09: 16.3%).

Government of Ukraine distributed about 2.2 mln of 2.7 mln tonnes of grain export quotas between 28 companies

Astarta [AST PW, U/R] has posted strong financials in 3Q2010. According to Company’s data net income increased by 262% YoY to EUR 76.2 mln (3Q09: EUR 21.1 mln). Consolidated revenue increased by 74% YoY to EUR 130.7 mln (3Q09: EUR 75.3 mln), operating profit grew by 179% YoY to EUR 81.6 mln versus EUR 29.2 mln in 3Q09. EBITDA grew up by 165% YoY to EUR 93.9 (3Q09: EUR 35.4). EBITDA margin grew from 47% in 3Q09 to 72% in 3Q10 and net margin – from 28% to 58%.