Daily monitor

Direct state debt and state-guaranteed debt of Ukraine grew by 4.4% to USD 50.4 bln in September. In 9M10, this equals a 27% increase.

A Kiev economic court has dissolved the contract on acquisition of a 76% share of Luganskteplovoz [LTPL UK] by Bryansk Machinery (Russia) from the State Property Fund of Ukraine. The court has also collected USD 10.6 mln in forfeits and fees from Bryansk Machinery for non-compliance with contract conditions.

The Creativ Group [4C8A GR, CRGR UK BUY], a vertically integrated agricultural holding and a leading manufacturer of oils and fats in Ukraine, plans to launch pork production complex in Kirovograd region with capacity of 60 thsd heads by the end of 2011 year.

In 1-3Q2010, Bogdan Motors [LUAZ UZ] shortened its net loss by 43% YoY to USD 38 mln, raising net sales by 9% to USD 134 mln. The Corporation produced 12,547 cars over the period, which is a 2.4% YoY increase.

Ukrnafta’s unit sales breakdown indicates that in 9M10, the Company sold about 90% of its total output of oil and gas condensate, natural gas, and other products. At the same time, unit sales were 12-18% lower than in 9M2009.

In 9М10, the financial account balance rose to a positive USD 7.3 bln.

Ukrnafta’s 3Q2010 net sales grew 54% to UAH 6.2 bln, while its EBITDA grew 33% to UAH 1.5 bln, which implies margin of 24%. The Company’s net profit grew to UAH 975 mln, which represents just 6.7% q/q increase due to a massive profit tax payment. UNAF’s net margin reduced from 23% in 2Q10 to 16%.

In 3Q2010, Luganskteplovoz [LTPL UK] received a net profit of USD 812 thsd, decreasing its net loss in 1-3Q2010 6 times YoY to USD 2.5mln. Company sales grew by 70% over the period, reaching USD67.7mln.

AvtoKrAZ Holding [KRAZ UK] has launched production of trucks designed for countries with left-hand drive traffic systems. The KrAZ-5233NE serial military truck was developed in response to an order from an Indian company’s security agency. A new truck will allow the company to sell trucks to clients in Pakistan and South Africa. Meanwhile, Uzbek Tupolanghydrokurilish placed an order for 30 more KrAZ-65055 trucks to be supplied in 2011 (14 of these trucks are already operating on a reservoir construction on the Tupolang River).

Between January-September 2010, Turboatom [TATM UZ], the only Ukrainian producer of power plant turbines, increased its net profit by 69% YoY to USD18.2 mln. Net sales grew by 62.4% YoY, reaching USD 91.3 mln. The volume of export accounted for 83% of company sales. Turboatom production exceeded its planned volume by 28%.