Daily monitor

Motor Sich [MSICH UZ, BUY], the largest aviation engine producer in Ukraine, recorded a net income of UAH 264 mln (USD 32 mln) in 3Q09, while its net sales increased by 117.2% YoY to UAH 1,222 mln (USD 148 mln) in that period. The Company’s net margin reached an impressive level of 21.6%. According to a press release issued by the Company, in January-September 2009, MSICH recorded a net income of UAH 516.9 mln (USD 62.7 mln), while net sales increased by 78.3% to UAH 2,492.6 mln (USD 302.2 mln).

Ukrainian coke producers reported on their respective production data for October 2009. According to the results, Alchevsk Coke [ALKZ UZ] and Yasyniv Coke [YASK UZ] improved their MoM production by 9.3% and 8.8%, to 316 thsd metric tons and 136 thsd metric tons, respectively. Avdiyivka Coke cut its monthly production by 7.0% to 253 thsd metric tons. For the first ten months of 2009, ALKZ managed to improve output by 1.7% to 2.9 mln metric tons of coke, while other producers slashed their production as follows: AVDK -36% to 2.3 mln metric tons and YASK -7.7% to 1.2 mln metric tons.

The Ukrainian Government has decided to mobilize credit in the amount of USD 400 mln from the Export-Import Bank of China under the state guarantees. These funds will be used to purchase vehicles for the disabled, made at ZAZ, which belongs to the UkrAvto holding.

Turboatom [TATM UZ, U/R] and Tajikistan’s ‘Barki Tojik’, a national power company, have concluded negotiations on the supply of equipment for the Nurek Hydro Plant. The order is worth a total of USD 6.1 mln. The delivery shall take place in the next six to twelve months.

The Committee of Directors of RZD, the Russian railway monopoly, approved a 10% increase to its investment program for 2010. Investment programme of the company accounted for RUB 252 bln (USD 8.6 bln) in 2009. Thus it could account for RUB 277 bln (USD 9.5 bln) in 2010.

Turboatom [TATM UZ, U/R] and Tajikistan’s ‘Barki Tojik’, a national power company, have concluded negotiations on the supply of equipment for the Nurek Hydro Plant. The order is worth a total of USD 6.1 mln. The delivery shall take place in the next six to twelve months.

The price of sugar on world markets has continued to increase in connection with significant purchases being made for the Indian market, where major players have decided to take the opportunity to buy sugar, the price of which had lowered recently. The fact is that, in the last month, the price of sugar declined by 7.3%. The country’s overall imports will amount to 6.7 mln metric tons of sugar this season, while last season’s imports amounted to 3.5 mln metric tons.

It is expected that the oilseeds crop in India in the new season, which began October 1, will drop by 9% to 13.65 mln metric tons due to reduced land and weak rainfall during the monsoon season, according to Dow Jones. The total area under oilseeds decreased by 5% to 17.5 mln ha, compared to 18.4 mln ha last year.

The Ministry of Agrarian Policy has increased its grain export forecast by 19.76%, or 3.3 mln metric tons to 20 mln tons for the 2009/2010 marketing year. This news was announced by Yuriy Melnyk, the Minister of Agrarian Policy. He also noted that the Agrarian Fund has conducted transactions worth UAH 1.7 bln for the grain harvest in 2009.

Ukrzaliznitsya (UZ) intends to raise more than USD 800 mln in credit resources in 2010. According to its previously announced plans, UZ had announced its intention to raise nearly USD 500 mln this year. Currently, the railroad monopoly has managed to raise only USD 120 mln in borrowings. UZ’s current loan portfolio is nearly USD 1 bln.