Daily monitor

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.

According to Interfax, Motor Sich [MSICH UZ, BUY], a large aviation engine producer in Ukraine ,signed a new contract with the Indian Air Force to modernize the engines in 105 of India’s Antonov AN-32 aircraft.

Avantazh Corporation is initiating a private placement of 15% of its shares in Nov-Dec 2008.

Mriya [MAYA GR, BUY], one of the top agricultural holdings in Ukraine, with a land bank in operation of 190 thsd ha, released its audited 2008 IFRS results. Key highlights: net revenues increased by nearly 5 times to USD 89.4 mln, EBITDA expanded by 4.5 times to USD 74.2 and net income surged by 4.6 times to USD 66.8 mln. As of January 1, 2009 Mriya’s bank debt amounted to USD 45.2 mln and the company accumulated USD 71.5 mln in cash, including cash in banks.

According to a press release from Zaporizhtransformator [ZATR UZ, N/R] – the world's largest manufacturer of transformer equipment – the company has signed a new contract with ArmRosgazprom in Armenia. ZATR will delivery four power transformers to the firth block of the Razdanskaya Thermal Power Plant (FFPP). The new power block will be launched in August 2010.

On June 23, 407.4 thsd mt of oil was sold at Resources Auction 130, which took place on the floor of the Ukrainian Interbank Currency Exchange. According to the UICE’s official information, the average price of the oil was UAH 1,288 per mt (up 4.9% from the last large-volume auction, Auction 129-D, which took place on May 26), or USD 19.2 per bbl (excluding VAT, at USD/UAH 7.6130, up 5.3%).