Daily monitor

The US Department of Agriculture decreased its estimates on Ukraine’s harvest in the 2009/10 marketing year by 27.5% YoY to 38.6 mln mt of grain. According to the USDA, Ukraine will harvest 19 mln mt of mill quality grain and 19.7 mln mt of fodder grain. Consequently, Ukraine’s wheat and barley exports will shrink to 7 mln mt and 5.7 mln mt respectively.

The Government of Ukraine has finally allocated UAH 2.2 bln (USD 0.3 bln) from the Stabilization Fund for agrarian needs. In particular, UAH 800 mln (USD 104.8 mln) will be directed for reimbursing bank interest, whereUAH 120 mln (USD 15.7 mln) is specified for the reimbursement of loans attracted by farmers for implementing innovation projects.

The privatization auction of a 25% stake in Poltavaoblenergo [POON UZ, BUY] was postponed by the State Property Fund from May 20 till May 27, 2009. No applications were handed in for the prior date, the SPF announced. The SPF had set the initial asking price for the 25% stake in POON at UAH 308 mln (USD 40 mln), or UAH 5.6 (USD 0.7) per share, as it had during previous attempts.

The National Bank of Ukraine issued Statement 282, which cancels the grounds upon which banks could refuse to allow early withdrawals by clients. However, the situation remains uncertain since NBU Board Governor Volodymir Stelmakh has commented that moratorium still is in effect, RBC says.

According to a note from the State Statistics Committee, foreign trade came close to balance in 1Q09, with a deficit of USD 0.42 bln announced. This figure followed an earlier announcement of a USD 1.44 bln merchandise balance deficit and compares drastically with a USD 3.79 bln trade balance deficit in 1Q08.

As of May 15, 2009, 88.9% of the winter crop in Ukraine is either in good or satisfactory condition. According to an official statement made by the Ministry of Agriculture, 54.1% (5.3 mln ha) of the crop is in good condition, and 34.8% (3.4 mln ha) is in satisfactory condition.

According to a press release, Kharkiv-based OJSC Turboatom [TATM UZ, HOLD] – the largest turbine manufacturer in Ukraine – has signed a new contract with Iran’s Azar-Ab company to supply an FFPP (Fossil-Fuelled Power Plant). The plant will receive two new power turbines, each with a capacity of 315MW. The contract calls for the new turbines to be delivered to Iran’s FFPP in the next 24 months.

Dnipropetrovsk Iron & Steel Works named after Petrovsky [DMZP UZ, U/R], or simply Petrovka, reported its FY08 financial results.

According to Interfax, Motor Sich [MSICH UZ, BUY], a large aviation engines producer in Ukraine, recorded 1Q09 net sales of USD 51 mln (-41 YoY). EBITDA increased by 4% to USD 11 mln and net profit rose by 23% to USD 4.8 mln (though in grivnya terms net profit almost doubled), EBITDA margin was 21.5% (+9.4bpp), net margin 9.5% (+4.9bpp).

According to a note from the State Statistics Committee, the industrial output fell 31.8% YoY in April 2009 as compared to a 30.4% YoY decline last month. The output has shrunk 4.8% MoM (but given a shorter month an average daily output has dropped 1.6%).