Daily monitor

According to the CEO of Mariupol Illich ISW, Vladimir Boyko, the Company may halt production in 2-3 months’ time if the government fails to refund its outstanding VAT. Currently this sum is is estimated at about UAH 800 mln.

On February 16, 2010, Ukrenergo will conduct the next monthly auction for accessing electricity export capacities in March 2010. The state transmission grid operator will be putting up for sale access to a 2765 MW capacity, including a 250 MW capacity integrated into UCTE.

The agricultural union ‘Tsukrovyk Poltavshyny’, which is affiliated with the Astarta Holding [AST PW, BUY], finished 2009 with a net income of UAH 26.8 mln (USD 3.35 mln), which is a significant improvement. This compares to the net loss of UAH 86.4 mln that was declared in 2008. This positive dynamic has occurred despite a decrease in revenues from UAH 455.1 mln in 2008 to UAH 332.7 mln in 2009.

The Ukrainian Automobile Holding, which is a member of the Bohdan Corporation, has decided to liquidate one of its four branches in Kyiv as a result of its failure to turn a profit for the Company.

According to the EVRAZ press service, the Petrovskyi ISW is launching the production of a new kind of rebar (U-iron) #14. After it has achieved the certification of this new product, the Company plans to sell it on the European market.

CPI reached 1.8% MoM in January compared to 0.9% MoM in December 2009. This indicator is currently at its 12-month high. Compared to January 2009, CPI rose 11.1%, which is low compared to previous years, but still significant given theh 14% real GDP contraction in 2009. Inflation in the food sector, at 3.2% MoM, was the biggest contributing factor to January’s CPI. The prices of sugar (+14.7% MoM), vegetables (+14.3% MoM), cheese (+9.8% MoM), milk (+7.7% MoM) and butter (+6.2% MoM) saw the most significant hike.

Interpipe Limited has failed to make its coupon payment for a sum of USD 8.75 mln on its USD 200 mln Eurobond issue, according to reports by the mass media. No additional information from bondholders or the Company is currently available.

At their meeting on February 3, shareholders in the Palmira Sugar Mill, which is affiliated with the Ukrros sugar union [36U1 GR, UROS UZ], decided to redeem 9.39% of its statutory fund, or 1 043 487 ordinary shares from the Ukrros sugar union. The par value of one share is UAH 1.5 and the market value has not been determined, since the shares in the Mill were never listed on any exchange.

Turboatom [TATM UZ] held its AGM yesterday (February 5). Of the UAH 125.7 mln (USD 16 mln) net income posted in 2009, the Company decided to allocate UAH 44 mln (USD 5.5 mln) towards a dividend payout. This implies a 2.6% dividend yield, 13.5 PER and UAH 0.104 (USD 1.3 cents) dividend per share.

The electricity generating company Centrenergo [CEEN UZ, U/R] and Ukraine’s largest power distribution company Dniprooblenergo [DNON UZ, BUY] have disclosed their 2009 financial results. CEEN recorded a USD 31 mln (UAH 244) net loss in 2009 on the whole and a USD 4 mln net loss in 4Q09. DNON reported a USD 10 mln (UAH 80 mln) net profit for 2009.