Daily monitor

Russia and Ukraine have reached an agreement on volume of quotas for pipe import from Ukraine into Russia. The volume of quota has reached 300 thsd tons.

Astarta [AST PW, U/R] has finished its beet sugar production campaign. According to the Company’s data, around 1.56 mln thsd tonnes (+2% YoY) of sugar beets were processed to produce about 200 thsd tonnes of sugar (-11% YoY), due to a lower sugar extraction ratio (12.7% in 2010 vs. 14.8% in 2009). The Company underlines its reduction by 8% of gas consumption per tonne of sugar produced. Astarta also reported an increase in its land bank of 20% YoY to 210 thsd ha. Despite unfavorable weather conditions, Astarta has harvested more than 330 thsd tonnes of crops (corn +3% YoY, soybeans +61% YoY).

In 2010 Kryukivka Carriage [KVBZ UK] has increased production of freight cars 2.7 times YoY to 9 079 units.

Ukrros [36U1 GR, BUY] has posted its financial results for 9M2010. The Company has increased its net sales by 4.5 times YoY to USD 91.6 mln, EBITDA by more than 5 times YoY to USD 25.7 mln with EBITDA margin of 28%. Ukrros has posted its net income of USD 13.1 mln against its net loss of USD 14.1 mln year earlier with net margin of 14.3%.

Luganskteplovoz [LTPL UK] has concluded a contract to receive a RUB 1bln (USD 32.8mln) credit at 8.1% interest from Kolomensky Zavod (Russia).

According to 2010 production results for Stakhaniv Carriage [SVGZ UK], the company has increased its output of freight cars 4.7-fold YoY, from 1 584 to 7 434 units. This result is not only the highest on record for the 45 years of the plant’s existence, but also represents one of the fastest recovery rates in the Ukrainian economy.

Kernel [KER PW, U/R] has signed a loan agreement for USD 80 mln with a European bank. The loan facility has been provided to the Company for general corporate purposes.

Ukraine will receive second tranche of International Monetary Fund (IMF) loan amounted to USD 1.53 bln.

Landkom [LKI LN, HOLD] posted its harvest results for 2010 of 100 thsd tonnes, which is 12% lower than we expected (113.8 thsd tonnes). The Company has harvested 18.4 thsd tonnes of wheat, 39.6 thsd tonnes of rapeseed, 30.2 thsd tonnes of corn, 3.6 thsd tonnes of sunflower and 3.5 thsd tonnes of soybeans. Also, the Company has prepared 18.8 thsd ha of land for spring planting.

Kernel [KER PW, U/R] has increased its syndicated loan by USD 100 mln and the total amount available for Kernel under the Syndicated Secured Financing Facility is USD 360 mln. Such increase is provided in response to the increased sunflower seed market price. Additional funds will be used for further sunflower seed purchases, their storage and processing.