Daily monitor

The National Energy Regulatory Commission (NERC) has approved a UAH 104 mln (USD 13 mln) investment program for Kyivenergo [KIEN UZ], a utilities provider for the City of Kyiv. Almost all of the stated financing will be allocated to capital investments. Initially, KIEN applied for a program in the amount of UAH 183 mln, but the regulator excluded some tariff components. In 2009, KIEN’s investment program was valued at UAH 163 mln.

According to an announcement by representatives of Mariupol Illich ISW, the Company should post a net profit of up to UAH 250 mln (USD 31.4 mln) in FY2009, compared with the UAH 700 mln (USD 88 mln) net loss that the Company reported in 1H09.

National Energy Regulatory Commission (NERC) approved UAH 199 mln (USD 25 mln) investment program for largest Ukrainian electricity distribution company Dniprooblenergo [DNEN UZ, BUY]. UAH 140 mln (USD 18 mln) will be allocated on capital expenses, which foresee construction and reconstruction of 270 km aerial power grids and 28 km cable electricity grid.

National Energy Regulatory Commission (NERC) increased wholesale electricity price for January 2010 by 3% to UAH 441 (USD 55) per MWh.

The Kernel Group [KER PW], a major producer of vegetable oil in Ukraine, has completed the reconstruction of its capacities at the Poltava Oil Extraction Plant, increasing its production capacity for sunflower seeds’ crushing by 73.3%, or 550 tonnes to 1,300 tonnes per day. The modernization has enabled the Company to refine new raw material in an amount up to 600 tonnes of soybeans per day.

In the 2009/2010 production season, the Ukrros Sugar Union [UROS UZ, 36U1 GR], one of the largest sugar producers in Ukraine, reduced its production of beet sugar by 35% YoY, or 70 thsd tonnes to 130 thsd tonnes. The Company had previously planned to produce 144 thsd tonnes of sugar in the current season, and to process 1 mln tonnes of sugar beet. However, in the current season, the Holding’s sugar factories processed just 961 thsd tonnes of sugar beet and produced 130.4 thsd tonnes of refined sugar. Furthermore, its plants produced 34 thsd tonnes of molasses and 10.5 thsd tonnes of granulated pulp.

Zaporizhtransformator [ZATR UZ, U/R], the world's largest manufacturer of transformer equipment, won the tender for producing six transformers for the ‘Novaya’ and ‘Ermensay’ switching stations in Kazakshtan. ZATR intends to supply them by February 2010. According to the Company, the construction of these switching stations are being carried out within the framework of preparations for the 2011 Asian Winter Games.

The Cabinet of Ministers has decided to transfer the deposits of individuals from Nadra Bank to Rodovid Bank. The government will allocate Rodovid Bank additional financing in order to ensure that Nadra Bank’s has the necessary means to repay these deposits to individuals.

The National Bank of Ukraine has published statistics on the banking sector for November 2009. We note a slight increase, by 1.5%, in the deposits of households compared with October’s level. The volume of deposits made by other segments of the economy remained unchanged, in comparison with the reduction recorded in prior periods. During the period January – October 2009, the total volume of deposits decreased by 10.5%.

On Wednesday, December 23, Moody's Investors Service confirmed the First Ukrainian International Bank's (FUIB) long-term local currency deposit and foreign currency senior unsecured debt ratings at B2, as well as its National Scale Rating at the A3 level.