Daily monitor

The Ministry of Fuel and Energy reported that Ukrnafta’s oil and gas condensate output was down 3% MoM, from 211kt in May to 205kt in June, thus bringing its 1H10 result to 1.3mt (-13.4% compared to 1H2009).

The European bank of Reconstruction and Development (EBRD) has provided a EUR 10 mln loan to Astarta [AST PW, BUY], a major Ukrainian agro-based holding with an emphasis on sugar production. The loan agreement was signed on July 7. The loan maturity is seven years, while the grace period is eighteen months. The focus is on sugar mills modernization—particularly a decrease in gas consumption—and on elevator construction.

The Ministry of Fuel and Energy reported that Ukrnafta’s natural gas output was down 5.7% MoM, from 210mln cm in May to 198mln cm in June, thus bringing its 2Q result to 614.5mln cm (-3.7% compared to 1Q2010).

Azovmash, one the largest Ukrainian machinery holdings, has announced that it intends to deliver charging equipment to Dniprovsky Iron and Steel Integrated Works (DMKD UZ) in 2010. Besides this, Azovmash signed an agreement with ALMK for the supplement of large bell and charging equipment parts. Azovmash did not disclose the monetary value of the agreement.

The Ministry of Economy announced an oil & gas condensate royalty ratio of 1.0 for June, 4% down MoM.

Slavutych brewery [SLAV UZ], a major Ukrainian beer producer, in its AGM on June 25 decided to implement a buyback program, according to which the company plans to purchase 61.8 mln shares (6.5% of the total shares) in the company on the market. According to official information, the buyback will extend from June 26 to July 26 at a price of UAH 2.1 (USD 0.26) per share, which is 9% below the current market price.

Ukrainian Railways (UR) plans to purchase 2 thsd freight railcars in 2010, reported UR’s press service. Earlier UR adopted a financial plan for 2010 with planned NI of UAH 450 mln and CapEx of UAH 10 bln.

National Bank of Ukraine (NBU) cut interest rates by 1% to 8.5%, but left the overnight credit rate unchanged.

On July 6, Astarta [AST PW, BUY], a major Ukrainian agro holding with an accent on sugar production, has launched a new milky farm with 1 thsd cows. After the launch of the farm the total number of milky cows of the Holding has increased by 10% to 11 thsd cows.

The Ukrainian Ministry of Finance started Eurobonds road-show, reported minister of finance Mr. Yaroshenko. According to Minister, Ukraine intends to place Eurobonds for USD 2 bln.