Daily monitor

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.

Another two electricity distributing companies have reported their preliminary financial results for 2009. Namely, Chernivtsioblenergo [CHEN UZ] recorded a UAH 19.8 mln net income in 2009 (-36% YoY), decreasing its net margin by 3 p.p. to 5%. The Company’s net sales grew by 11.8% YoY to reach UAH 413 mln.

Illich Stal, which controls the Mariupol Illich ISW, increased its share in Komsomolsk Ore to 99.66%, or 1.136 bln shares, after Mariupol Illich ISW transferred its share of 33.14% to Illich Stal.

Luhanskteplovoz [LTPL UZ, HOLD], a Ukrainian locomotive producer, intends to increase its production output by more than two times in 2010. According to LTPL’s Chairman of the Board, the Company expects to realize such growth on account of orders from Russian Railways (RZD), Ukrzaliznytsia (UZ), Kazakhstan Railways (KTZ), and their Mongolian equivalent.

Two small electricity distributing companies have reported their preliminary financial results for 2009. Zakarpattyaoblenergo [ZOEN UZ] registered a UAH 1.0 mln net income in 2009 (-96% YoY), after posting a UAH 7.0 mln net loss in 4Q09. The Company's net sales grew by 7.6% YoY to reach UAH 523 mln.

Ukraine’s trade balance in 2009 exhibited a USD 1.4 bln deficit. This is a significant improvement compared to the USD 13.3 bln trade deficit in 2008. Notably, the merchandise trade deficit in 2009 contracted to USD 5.7 bln from the USD 18.6 bln deficit in 2008. The monthly trade deficit in December 2009 widened to USD 0.9 bln, compared to USD 0.5 bln deficit registered in November 2009. The balance of goods was marked by a USD 4.3 bln surplus, a moderate decline compared to the USD 5.3 bln surplus witnessed in 2008.

On February 12, 2010, Kernel Holding S.A. [KER PW, BUY] signed the call option agreement to acquire the 37.6% minority stake in the Allseeds Group, subject to the approval of this transaction by the Antimonopoly Committee of Ukraine.

Kernel Holding S.A. [KER PW, BUY] has reported on its 2Q2010 results. Its revenue decreased 6.5% YoY, from USD 291.2 mln in 2Q2009 to USD 272.3 mln in 2Q2010. Revenues fell due to relatively lower commodity prices, which were, however, compensated by higher volumes. The Company’s gross profit increased 6% YoY to USD 93.9 mln, while its gross margin grew from 30% to 34%, driven primarily by 50% growth in bulk oil sales and 22% growth in grain terminal throughput. Kernel’s EBIT increased 7% YoY to USD 51.6 mln and its operating profit margin increased YoY from 17% to 19%. Net income rose by 8% YoY to USD 43.2 mln for 2Q2010.

Azovmash, the largest Ukrainian machinery holding, has reported on the successful shipment of two charging devices to Azovstal. Azovmash did not disclose the monetary value of the agreement.

UkrAVTO [AVTO, U/R], one of the largest auto retail companies in Ukraine, reported UAH 5.3 in net income in 2009. In 2008, the Compnay posted a UAH 116.8 mln net loss. The Company also announced its upcoming shareholders’ meeting, which is scheduled for April 6.