Daily monitor

On May 16, Dniprospetsstal [DNSS UZ, BUY] disclosed in an official filing further changes in nominal ownership structure.

Ukrnafta [UNAF UZ, BUY] announced that an AGM would take place on June 24.

The May 16 AGM of Dniprometiz [DMPO UZ, N/R] provided no details on the company’s development plans. The management indicated that such plans would be discussed at a later press conference.

Official statistics on retail trade indicate a 29.0% YoY growth in the sector’s turnover in 4M08. The growth in retail trade turnover accelerated from +27.2% YoY in 3M08 and +28.8% YoY in 2007.

According to the announcement made by Naftogas, the company intends to cut gas supplies to all Combined Heat and Power Plants (CHPP) which can not provide full payments for the consumed gas, including Kyivenergo [KIEN].

Ukraine resumed electricity export to Poland starting April 14, which was stopped in October 2007. According to Ukrinterenergo, state intermediary in electricity export, it has a signed contract with Polish company Zomar S.A. on electricity export until 2015. During April 14 – April 30 2008 Ukraine exported only 8.4% less than in April 2007.

Official statistics indicate real GDP growth accelerated to 6.7% in April and 6.2% in 4M08 from 6.5% YoY in March and 6.0% YoY in 3M08, respectively.

On May 13, Metinvest Holding reported that during 4M08, one of its trading subsidiaries, Metinvest-Ukraine LLC (responsible for Metinvest Group sales in Ukraine and CIS countries excluding Russia), demonstrated strong results. Namely, sales of long products in CIS countries (excluding Russia) increased 45% YoY to 55 thsd mt, whereas long products sales in Ukraine jumped by similar 45% YoY to 380 thsd mt. The leading growth market was Belorussia, which consumed 14 thsd mt, twice as much as in 4M07. Metinvest-Ukraine director general, Oleg Olshanskiy, noted that the company’s growth rate in Ukraine outpaced the average market growth rate by more than two times.

At a May 14 EGM, shareholders of Dnipropetrovsk Metallurgical Plant named after Komintern, or Kominmet, [DMZK UZ, N/R] approved a share capital increase plan. A total of 48.3 mln new shares will be offered at the face value of USD 0.0495 per share, fetching USD 2.4 mln. Shareholders will be able to exercise their exclusive purchase rights (on a pro-rata basis) from July 14-18 (ex-rights day July 14, last trading day July 11); during the second stage, which is to last just one day, July 21, anyone would be able to purchase leftover shares.

Stakhaniv Carriage Works [SVGZ, U/R] has increased its production in Jan. – April, 2008 14% YoY to 2,356 carriage units. In April, SVGZ released 569 freight carriages, about 80% of which were gondola carriages, the most demanded type of carriage in the CIS. From Jan. to April, 2008, SVGZ increased its output of gondola carriages 50% YoY. As of the beginning of May 2008, SVGZ has employed almost 5.8 thsd workers (compared to 4.7 thsd workers in May 2007).