Daily monitor

The State Property Fund of Ukraine (SPF) has once again postponed the privatisation auction for a 25% state stake in Ukrainian regional power distributing company Poltavaoblenergo [POON UZ, BUY], this time from July 1, 2009 to July 8, 2009.

Ukraine’s Cabinet of Ministers has suggested to the country’s parliament that it confirm a proposal to use the troubled banks recap scheme as a model for Naftogaz’ recapitalization.

According to a press release from Prominvestbank (PIB) – one of the largest banks in Ukraine and controlled by Russia’s Vnesheconombank – the bank has opened a USD 39 mln. one-year credit line for Zaporizhtransformator [ZATR UZ, N/R] –the largest power transformer producer in the CIS. The credit line will be used to raise the company’s working capital.

According to a note from the State Statistics Committee, the average real salary has fallen 9.1% YoY, while the nominal figure has grown 4.3% YoY and 0.3% MoM, reaching UAH 1851 (USD 243).

The National Energy Regulating Commission of Ukraine (NERC) did not change the power tariffs for end-users for July 2009.

According to Ukrainian News, Ukrzaliznitsya (the state railway company in Ukraine) is going to order 170 new passenger railcars and 10 locomotives on credit by 2010. UZ’s total CAPEX program for its rail fleet modernization is approximately UAH 4 bln (~USD 500 mln) in 2009.

According to a press release, Kharkiv-based OJSC Turboatom [TATM UZ, HOLD] – the largest turbine manufacturer in Ukraine – has signed a protocol of future cooperation with Skoda Power (Czech Republic) to produce power turbines for power Thermal Power Plants (FFPPs) in India. The companies agreed on further cooperation in power turbine delivery to Eastern Europe and Asia.

Ukrproduct [UKR LN, N/R],a London AIM-listed Ukrainian dairy producer, is expecting a sharp decrease of its revenues and slipping net income in 1H09 based on decreased consumer interest in branded products. Moreover, domestic consumer demand is shifting from processed to hard cheese together with a diminishing difference in price. Ukrproduct reported an adverse impact on sales volumes and operational margins.

According to the RZD Partner journal, Russian State Railway Company (RZD) will decrease foreign orders for its rail fleet and other related equipment by 20% in 2009 to support local producers. In 1Q09 RZD decreased orders by 3.6x for mechanical equipment including railcars.

Three companies, including Kryukiv Railcar [KVBZ UZ, U/R], JSC Vagonmash (Russa), and CAF (Spain), are participating in a Kyiv Metro tender to supply 40 metro wagons. The deal is worth EUR 40 mln, with funding provided by EBRD specifically for ordering subway cars.