Daily monitor

Bohdan Motors [LUAZ UZ, U/R] posted a net loss of UAH 621.6 mln (USD 77.8 mln) in 2009. The Company’s net sales dropped by 82% from UAH 6.9 bln to UAH 1.2 bln.

Azovmash has announced that it intends to deliver a convertor to the company Mittal Steel Annaba (Algeria). The equipment’s delivery is slated for the end of 2010. The value of this contract has not yet been publicly disclosed.

According to the World Steel Association, in January, global steel production grew by 25.5% MoM to reach 108.9 mln tonnes in January. Most countries in the top ten steel producers experienced a monthly increase in steel output, with the exception of Ukraine, Russia, Japan and Turkey. Despite the MoM decrease in steel output, Ukraine managed to boost steel production by 28.4% YoY.

Sumy Frunze Machine Building [SMASH UZ, U/R], the leading CIS manufacturer of machinery equipment for the oil and gas industry, reported a net income of UAH 403 in 2009. In 2008, the Company had posted a UAH 149 mln net loss, mainly due to the revaluation of FX-denominated loans, which resulted in financial losses in the amount of UAH 161 mln.

The power generating companies Centrenergo [CEEN UZ] and Zakhidenergo [ZAEN UZ, HOLD] have reported net losses for 4Q09 and the full year of 2009. Notably, in 2009, CEEN posted a USD 32 mln net loss, negative USD 3 mln EBITDA, and USD 559 mln in net sales. In 4Q09, the Company carried a USD 4 mln net loss, but fortunately had a positive USD 4 mln EBITDA.

The VS Energy-owned Kirovogradoblenergo [KION] posted a UAH 34 mln net loss, compared to the Company’s 2008 situation, when it registered a meager UAH 1.2 in earnings. Yesterday, all other Ukrainian power distributers reported that they ended 2009 with net earnings. The VS Energy-owned Odesaoblenergo [ODEN] showed a tiny net income of UAH 0.03 mln. The state-owned Kharkivoblenergo [HAON] recorded UAH 21 mln in 2009 earnings, while those figures stood at UAH 13 mln for Khmelnytskoblenergo [HMON], UAH 22 mln for Vynnytsiaoblenergo [VIEN UZ], UAH 19 mln for Krymenergo [KREN UZ], and UAH 5 mln for Mykolayivoblenergo [MOEN UK].

AvtoKrAZ [KRAZ UZ, N/R], a Ukrainian producer of heavy duty automobiles, has successfully supplied a shipment of 30 vehicles to a client in Russia. These autos are intended for use in the process of installing oil and gas equipment.

According to Metal-courier, Zaporizhstal, one of the largest Ukraine’s steelmakers, began importing coke from Russia. The steelmaker signed an agreement with Russian “Coke” (Kemerovo), according to which the Company should supply 10 thsd tonnes of coke to Zaporizhstal in February. Zaporizhstal representatives explained this decision as a result of the coke deficiency in Ukraine and the low coke quality of domestically-produced coke.

According to the State Statistics Committee of Ukraine, in 2009, Ukraine’s coke imports contracted by 80% to reach 0.25 mln tonnes. At the same time, coke exports decreased by 8.5% to 0.92 mln tonnes.

Azovmash, the managing company of Mariupol Heavy Machinery [MZVM UZ, BUY] and Azovzagalmash [AZGM UZ, SELL], posted a UAH 2.6 mln in net income in 2009 (vs. UAH 2.4 mln in 2008). The Company’s net sales increased to UAH 76.6 mln (vs. UAH 68.8 mln in 2008).