Daily monitor

Vladimir Boyko, the CEO of Mariupol Illich Iron & Steel Works [MMKI UZ, BUY], warned that his company may cease operation within two to three days due to lack of orders. At a meeting in the Cabinet of Ministers of Ukraine, Boyko said that there was only two production days left of orders. According to some reports, he said that after two days the plant may halt its production.

The State Railway Monopoly of Ukraine, Ukrzaliznytsya (UZ), has updated its rolling stock of USD 565 mln in 2008. The money was spent for purchases of 176 passenger railcars, 699 freight railcars, 20 electric locomotives bought through a leasing contract, 3 thermo locomotives, 8 trains, 4 rail buses, among other acquisitions.

Yesterday, on August 27, 2008, Kovelmoloko [KMOL UZ, BUY] held a successful AGM. KMOL’s shareholders positively voted on the main agenda of the AGM – a 15.2 times increase of the Statutory Fund.

According to an official press release, Slavutych [SLAV UZ, BUY] is going to increase its Statutory Fund by 14.8% to USD 202 mln through an additional share issue.

Dnipropetrovsk Iron & Steel Works named after Petrovsky [DMZP UZ, BUY], or Petrovka, has completed a USD 25 mln, 50-day upgrade of its Blast Furnace No. 2. According to UGMK.info, as the next step in blast furnace shop advancements, Petrovka plans to upgrade BF No. 5 in 2010.

The National Electricity Regulatory Commission (NERC) has revised upwards the electricity tariffs for industrial consumers – by 4.7% MoM for large industrial consumers amounting USD 84 per kWh and 5.0% MoM for small industrial consumers amounting to USD 110 per kWh.

According to Kommersant-Ukraine, an obscure Russian company – Prospetsinvest LLC – is interested in the Ukrainian State Company Rovenki Anthracite. For starters, Prospetsinvest will contribute USD 120 mln in equipment and USD 60 mln in investments in return for 40% of profits, as agreed in a collaboration agreement. Kommersant-Ukraine also notes that in the future, should Rovenki Anthracite come up for privatization, Prospetsinvest will have priority as a past collaborator with the company.

According to an additional bonds issue prospect, Kovelmoloko [KMOL UZ, BUY] is going to further expand its market share on the Ukrainian dairy market to 5%. Moreover, the company plans to hold 4.8% of the Ukrainian production of sour milk “kefir”, 8.3% for sour cream, 5.7% for cheese, 5.4% for soft cheese, and 3.4% for butter.

According to various news sources, which cited the press service of Concern Stirol [STIR UZ, U/R], the company redeemed USD 125 mln of Eurobonds.

Nikopol Ferroalloys [NFER UZ, N/R] will conduct an AGM on October 08. Among the topics on the agenda are: profit distribution for 2001, 2002, 2003, 2005, 2006, and tentatively for 2008; management board reports for these years; and technical matters, such as the new edition of its statute.