Daily monitor

Sintal Agriculture [SNPS GR] announced the completion of its 2008/09 harvesting campaign, with a total harvest of 323 thsd metric tons from an area of 82 thsd ha. Sintal’s 2008/09 principal crop yields (wheat, barley and corn) constituted 4.7, 3.7 and 6.1 metric tons per ha, respectively. This marks an improvement of 2-9% compared to last year’s harvest. Nevertheless, the achieved wheat and barley yields are 45% and 50% higher than the Ukrainian average, respectively. The soybean yield was in line with last year’s results. The sunflower yield was depressed by 36% due to adverse weather conditions, compared to last year’s yield of 1.6 metric tons per ha.

The Fitch international rating agency has confirmed the long-term credit rating in foreign currency of Myronivsky Hliboproduct [MHPC LI] at the level of B -. The rating forecast is negative.

Landkom International [LKI LN], a major Ukrainian oilseeds and grain producer, has completed its autumn sowing campaign. It has announced a YoY reduction in the area under winter crops by 7 thsd ha to 24 thsd ha. However, the Company plans to shift more towards planting spring crops. As a result, the harvested area should ultimately increase to 34 thsd ha, which is 17% more than harvested in the previous season. At present, Landkom has already prepared 10 thsd ha for spring sowing. Among the winter crops sown, winter rapeseed is predominant at 16.5 thsd ha, while winter wheat has been sown on 5.5 thsd ha.

National energy regulatory commission (NERC) increased December wholesale electricity price by 0.7% compared to November. This is the second consecutive tariff increase by the NERC after 3% MoM wholesale electricity price lift for November 2009. Also, NERC adjusted power tariffs for power generating stations of Kievenergo [KIEN]. Due to the fact that KIEN operates gas fired power plants, it is not competitive with the coal fired power plants. Thus NERC decided to implement fixed electricity tariff for KIEN and assigned UAH 440 per MWh tariff for December 2009.

In October 2009, ammonia production in Ukraine reached 291 thsd mt, representing a 69.5% drop YoY, according to Ukrainian News. Notably, Ukrainian ammonia production in September 2009 was 266 thsd mt, a 66% drop YoY in production.

Stakhaniv Railcar Works [SVGZ UZ, BUY] has announced its intention to increase its annual production of railcars, with the new forecast level growing to 6,000 cars in 2010. According to the management of the Plant, 2010 is expected to be even an even more successful year than was the case in 2008, prior to any serious damage caused by the crisis.

Ukraine's sovereign rating received affirmation by Moody's Investors Service after Ukrzaliznytsia (UZ), the state-run rail operator in this former Soviet country, defaulted on its debt payment to Barklays. Agency kept B2 long-terms credit rating in foreign exchange with a negative outlook.

According to A. Zhemoyda, the Deputy President of the Agrarian Chamber of Ukraine, the bill "On the State Budget of Ukraine for 2010" does not meet the needs of Ukrainian farmers. According to the 2010 budget, funding in 1Q2010 should amount to only 1/12 of the overall funding witnessed in 1Q2009, which is not going over well with Ukraine’s farmers.

AvtoKrAZ [KRAZ UZ, N/R], a Ukrainian producer of heavy duty automobiles, intends to renew exports to the Democratic Republic of Congo. According to its management, the Company intends to deliver the vehicles at the end of 2009 or beginning of 2010. The value of the contract has not been disclosed at this time.

Today, at the General Meeting of Landkom International [LKI LN], shareholders approved the issuance of 195 mln ordinary shares at a price of 5 pence per share. This initiative was taken in order to attract an additional GBP 9.75 mln (about USD 16 mln) in financing. The actual issuance will be made tomorrow, November 26. The funds raised, which equal USD 15 mln excluding the costs of making the issuance, should go towards replenishing the Company’s working capital for the purpose of carrying out autumn and spring field work.