Daily monitor

The current account deficit in July is USD 255 mln and the financial account surplus is USD 1 bln. A 7М10 surplus of current account is USD 24 mln, and the financial account surplus is USD 5.15 bln.

Yesterday Astarta [AST PW, BUY] held an analysts’ meeting, where it presented its financial and production results for the 1H10. According to the Company’s data, its net income increased by 119% YoY to EUR 41.0 mln (1H09: EUR 18.7 mln). Consolidated revenue increased by 85% YoY to EUR 86.0 mln (1H09: EUR 46.4 mln), while operating profit grew by 117% YoY to EUR 43.3 mln versus EUR 20.9 mln in 1H09. EBITDA was up 104% YoY to EUR 51.1 (1H09: EUR 25.1). The EBITDA margin grew from 54% in 1H09 to 59% in 1H10.

Bogdan Corporation, owner of Bogdan Motors [LUAZ UZ], has announced its plan to increase car production at the Cherkassy plant to 5,000 units per month by the year 2015. Next year, the company aims to produce 2,500 – 3,000 cars per month. From 2012 - 2015, Bogdan Motors will incrementally increase production to reach 5,000 units per month by 2015, which is the car production breakeven point for the plant.

Today, according Nikolay Prisyagnuk, the Minister of agriculture of Ukraine, the Cabinet of Ministers will not consider the imposition of quotas on grain exports. Viktor Slauta, the vice-prime-minister, confirmed this fact.

Yesterday Avangard [AVGR LI, U/R] posted strong financial results for the 1H10. According to Company’s data net income increased by 86% YoY to USD 61.9 mln (1H09: USD 33.4 mln). Revenue increased by 68% YoY to USD 165.9 mln (1H09: USD 98.6 mln), gross profit grew by 37% YoY to USD 55.4 mln versus USD 40.3 mln in 1H09. EBITDA margin remains high, however it decreased to 38% from 44% in 1H09.

Mariupol Illich ISW should increase its August pig iron output by 10% MoM to 399 thsd tonnes and than keep it flat in September, Metal Courier reported.

Turboatom [TATM UZ] has finished modernization of a steam turbine for module 10 of Lugansk thermal generating plant. The last part of equipment for modernization is to be supplied today. The supply will finish the contract between Turboatom and Lugansk thermal generating plant concluded October 29, 2008 with overall cost of USD 8.2 mln.

Transmashholding (Russia) (owner of 76% share of Luganskteplovoz [LTPL UZ]) plans to provide Luganskteplovoz with a large order for 100 locomotive sections for RZD (Russian Railway Company) and 50 - for Ulan-Bator Railway (Russia-Mongolia railway operator) in 2011. The company also plans to construct two new generation locomotives.

New long trolleybus produced by Bogdan Corporation (proprietor of Bogdan Motors [LUAZ UA]) in cooperation Cegelec (Czech Republic) was certified in accordance with standards of the EU. According to the company press secretary, this will allow Bogdan Motors to participate in trolleybus supply tenders in the European Union, starting from tenders in Lithuania in 2010.

The Ministry of Fuel and Energy reported that Ukrnafta’s oil and gas condensate output was down 13% y/y in July, while in monthly terms its output grew by 2%. On a broader scale, Ukrnafta performed worse than the sector, which decreased its oil and gas condensate production by 11% y/y in July 2010.