Daily monitor

The Dakor Agro Holding, a major Ukrainian agricultural company, has announced that it plans to increase its net profit by 5.5 times, to UAH 648.5 mln, in 2011 compared with 2008. In that year, its net profit stood at UAH 117.2 mln. The net revenue for 2010 is expected to reach UAH 1.192 bln while, in 2011, it is expected to reach UAH 1,824 bln. 2009 revenues should fall to UAH 660.9 mln, which is 7.8% less than in 2008. This drop is due mainly to adverse weather conditions this year, which resulted in declining yields for the main crops.

The shareholders of the company Zaporizhtransformator (ZATR UZ) have decided to pay out UAH 106.1 mln in dividends for the year 2008. In regards to the rest of the Company’s income (UAH 421.7 mln) for 2008, shareholders decided to distribute it at future shareholders meetings. ZATR intends to pay out the dividends from December 1 2009 to December 31, 2010.

Agroton, a major Ukrainian agricultural holding, reported on the planned IPO of its shares on the Warsaw Stock Exchange in May-June 2010. The Company has not yet revealed the number of shares that will be placed and the expected amount of funds to be raised. Earlier in November, the Company conducted a private placement of 25% of the Company's shares on the Frankfurt Stock Exchange, as a result of which USD 42 mln was raised. Thus, the Company's capitalization was estimated at USD 168 mln.

The agricultural holding Kernel [KER PW] reported on its financial results for 1Q2010 FY (July 2009-June 2010, with 1Q2010 FY ending on September 30, 2009). The Company posted a net profit of USD 39 mln on a revenue of USD 241 mln. This compares to a net profit of USD 23.2 mln and revenue of USD 371.3 mln in 1Q2009 FY. Consequently, the quarterly net margin increased from 6.2% in 2009 up to 16.2% in 2010 YoY.

The Sugar Union Ukrros holding [UROS UZ] and the Ukrroszerno agricultural holding have finished sowing winter crops for the 2010 harvest. Their area increased by 11.9%, or by 3.3 thsd ha, to 31 thsd ha, compared to the previous year. Within the makeup of the winter crops, wheat was the leading crop, being sown on 24 thsd ha. Winter barley was sown on 2.9 thsd ha, winter rape on 2.4 thsd ha, and other winter crops on 1.7 thsd ha. Currently, corn harvesting has been completed on an area of 5 thsd ha (59% of the planned amount), while sugar beet has been harvested from 14.3 thsd ha (85% of the planned amount).

During the Deutsche Investment Forum last week, the top management of Galnaftogaz [GLNG UZ] spoke about the Company’s plans to make a listing on a western stock exchange. The Company wanted to make the listing in 2008 but it changed its plans due to turmoil of the financial crisis. In their latest statements, GLNG’s management noted that they expect markets to recover and see the possibility of making an IPO in 2010-2011. The Company’s representatives also noted that, unlike the case in 2008, when the Company posted a UAH 300 mln net loss, in 2009, Galnaftogaz is generating earnings and is capable of servicing its debts.

Ukraine and the United Arab Emirates are pursuing common interests in terms of cooperation in the sphere of aviation, according to a statement made by Andrei Goncharuk, the Deputy Director of the Secretariat of Ukrainian President Viktor Yushchenko. He noted that this question would be discussed during the Ukrainian President’s upcoming visit to the United Arab Emirates on November 16-17.

The Fitch international rating agency has cut the ratings for a series of Ukrainian companies. The agency confirmed Stirol`s long-term rating in foreign currency at B-, while downgrading its forecast to “negative”. Fitch also confirmed Naftogaz`s long-term rating in foreign currency at CCC, while retaining its “negative” forecast.

The Fitch international rating agency has cut Ukraine’s long-term rating, in both foreign and local currencies, from “B” to “B-”. The forecast is negative. The agency also downgraded ratings of nine Ukrainian banks to “B-” (Ukrsibbank, Ukrsocbank, Forum Bank, ProCredit Bank, Praveks-Bank, VTB Bank, Oshadbank, Ukreximbank and Privatbank), as well as three Ukrainian cities (Kyiv, Odesa and Kharkiv). Previously, Standard & Poor’s also downgraded its forecast for Ukraine to stable, while confirming its “CCC” long-term sovereign rating

On November 12, Astarta [AST PW] reported on the first nine months of the 2009 financial year. The Company’s results demonstrated positive growth on the back of increasing prices on both global and domestic markets, as well as the consolidation of its business. Revenues for 9M2009 increased by 6% YoY and amounted to EUR 75.3 mln (in UAH equivalent, it was up 57% to UAH 839.8 mln). EBITDA grew by 8% to EUR 35.4 mln, while net profit grew by 5% to EUR 21.1 mln.