Daily monitor

Ukraine’s steelmakers increased steel output in August by 6% MoM to 2.6 mln tons, Metall-Courier reported. The highest growth among domestic peers was posted by IUD subsidiaries Alchevsk ISW [ALMK UK], at 56% MoM (-20% in 8M10); by Dzerzhinka [DMKD UK], at 43% MoM (-24% in 8M10); and by Petrovskyi ISW [DMZP UK], at 57% MoM (-7% in 8M10). Other steelmakers, whose shares are actively trading on UX, namely Mariupol Illich ISW, Azovstal, and Yenakievo ISW, posted a monthly increase in output at 14%, 2%, and -3%, respectively.

According to the Energy Company of Ukraine, a holding company managing four Ukrainian GenCos – Dniproenergo [DNEN UK], Donbasenergo [DOEN UK], Centrenergo [CEEN UK], and Zakhidenergo [ZAEN UK] – domestic GenCos’s total electricity production rose by 9.3% YoY in 8M2010, to 31.8 bln kW. In monthly terms the output increased by 17.9% during August.

Ukrainian agricultural companies finished their early grain harvest campaign with 29.5 mln tonnes of grain, leguminous, and oil-seed crops, with an average yield of 2.47 tonnes per ha. Agricultural companies processed only 11.9 mln ha of sowing areas.

The government debt of Ukraine in July 2010 increased by 6.5% to USD 45.9 bln total (15.2% YoY).

Yesterday national energy regulator, NERC, left natural gas price for industrial users in September at the August level of UAH 2,187 per thsd cm (USD 277 per thsd cm).

According to the Ukrainian News agency, in 1H10, Ukraine increased its iron ore export by 42% to 18.6 mln tonnes.

Yesterday, Kernel [KER PW, U/R] posted its financial results for FY10. According to Company’s data, net income increased by 16% YoY to USD 152.7 mln (FY09: USD 132.0 mln). Revenue decreased by 3% YoY to USD 1,020.5 mln (FY09: USD 1,047.1 mln), while operating profit grew by 1% YoY to USD 168.2 mln versus USD 166.6 mln in FY09. EBITDA fell by 1% YoY to USD 188.1 (FY09: USD 189.6). The EBITDA margin remained flat at 18% in FY10.

According to Dmitry Kiva, the general director of Antonov State Aircraft Company, recent negotiations with Russian Joint Aircraft Corporation may result in creation of joint Russia-Ukrainian aviation concern by November. Meanwhile Antonov announced its plans to attract USD 0.5 bln of credits, backed by contract receivables during the next 3 years for expending production volume.

In August 2010, Kryukivka Carriage [KVBZ UZ] will have decreased its train car production by 4% MoM to 873 units. All 3 sections of the plant were operating during the month, producing 50 cement carriers, 2 subway train carriages, and 821 gondola cars.

At yesterday’s EGM, Ukrnafta’s [UNAF UK, BUY] shareholders approved six new members (including a new Head) of its Supervisory Board, all of them being protégées of the current government. The remaining five members – representatives of the Privat business group, which owns 42% of the Company– were left unchanged.