Daily monitor

Ukrainian Railways, (Ukrzaliznitshya) successfully restructured a syndicate loan of USD 550 mln , the minister of transport reported. The term of the loan has been extended by 5 years. No additional information about the terms of restructurization is available.

Myronivsky Hliboproduct (MHP) [MHPC LI, HOLD], a leading vertically-integrated poultry producer in Ukraine, has announced its results for 1Q2010, ended March 31, 2010. Revenue increased 48% to USD 200 mln; EBITDA remained stable at USD 49 mln; net income decreased 8% to USD 36 mln.

According to Interfax, Australia may introduce a 40% tax on the resource mining industry in the medium term. This tendency may spread to other countries that have a solid mineral resource base, such as Brazil, Canada, and South Africa. If the increase takes place, the profits of the world’s biggest iron ore producers may be at risk.

Myronivsky Hliboproduсt [MHPC LI, HOLD], a major Ukrainian poultry producer, has announced its intent to buy back 5% of its GDRs on the market. The final decision should be made on the EGM scheduled for May 27. The buyback program will last for a year from the date of adoption. GDRs will be purchased at market price, but in the range of 1–18 dollars per GDR.

According to Vladimir Boyko, Mariupol Illich ISW’s CEO, the company will decrease its average daily steel output in May to 14 thsd tonnes (-17% MoM) from 16.9 thsd tonnes in April. This decline results from a lack of orders for the company’s steel products. The company plans to use this excess capacity to perform regular repairs.

State Property Fund of Ukraine announced privatization plans according to which 93% stake in Ukrtelecom [UTLM UK] shall be privatized in august 2010, 25% stakes in Odessaoblenergo [ODEN UK] and Poltavaoblenergo [POON UK] in may 2010 and 25% stakes in Sumyoblenergo and Prykarpattyaoblenergo [PREN UK] in June 2010. UTLM shall be privatised via open auction, whereas stakes in oblenergos via stock exchange.

According to the Ukrainian news agency, Poltava GOK’s [PGOK UK] shareholders on their AGM decided to sell the company’s stake in Yeristovo GOK and Belanovskyi GOK to the mother company, Ferrexpo. These two GOKs hold licenses to explore Yeristovskoe’s and Belanovskoe’s iron ore deposits.

Kernel Holding [KER PW, HOLD], a major grain trader and sunoil producer in Ukraine has announced its financial results for 3Q2010 ended on March 31, 2010. For the 3d quarter revenue increased 32.5% YoY, from USD 203.4 mln for 3Q2009 to USD 263.4 mln for 3Q2010; operating profit decreased 6.9% YoY from USD 48.8 mln to USD 45.4 mln; net profit decreased 15% YoY, from USD 47.2 mln to USD 40.0 mln.