Daily monitor

Ukrros, a Ukrainian sugar producer with a 70 thsd ha land bank in lease, held a conference yesterday, where the company released its audited consolidated IFRS financial results for 1H08. Key financials: net revenues increased to USD 75.6 mln, EBIT improved from negative to positive USD 3.5 mln, and net income increased to USD 4.3 (including VAT redemption).

Ukrtelecom`s mobile communication unit Utel increased its subscriber base by 47% MoM in October to 92,000 subscribers, according to the company ‘iKS Consulting’, which studies telecommunications markets in Russia and the CIS.

A number of consequent news on Ukrainian electricity generating companies led us to expect further conflict around the shareholdership in GenCos. . After Monday’s statement by the Ukrainian Deputy Coal Minister that Ukrainian electricity generating companies owed UAH 426 mln for coal supplied, two news which we view as connected also appeared yesterday.

The Ministry of Fuel and Energy notes the need to invest UAH 15 bln in the development of the fuel and energy complex and investment projects in the energy sector in 2009.

An engine manufacturing project involving the Zaporizhya-based company Motor Sich [MSICH UZ, U/R] for the joint production of the D-436TP engine has officially received European certification. The engine has successfully passed its flight fitness tests by European standards on a Beriev Be-200 amphibious aircraft, according to Motor Sich’s office in Moscow. MSICH collaborated with two Russian companies on this project – the MMPP Salyut machine-building company (Moscow) and the UMPO engine-building enterprise (Ufa).

Motor Sich [MSICH UZ, U/R] – one of the largest manufacturers of airplane and helicopter engines in the world – has recently seen some progress with two specific international projects. The first involves MSICH as the serial producer of AI-450 engines for a project being overseen by Russia’s Kamov Plant, involving the modification of the Kamov Ka-226 light multi-role helicopter to comply with the requirements of the Indian armed forces. According to Interfax-AVN, the aircraft is to be fitted with a new MSICH-produced engine, which will be the distinctive feature of the Indian modification.

The Ministry of Regional Development and Construction is planning to implement mandatory protection for cement producers from gas and electricity price increases. This mandatory protection is made in order to protect the real estate market from an increase in the prices of construction materials.

On November 25, 215.3 thsd mt of crude oil were sold at Resources Auction 123, which took place on the floor of the Ukrainian Interbank Currency Exchange. According to our source at the UICE, the average price of oil was UAH 1,719 per mt, or USD 28.9 per bbl (excluding VAT, at USD/UAH 6.75).

Ukrnafta [UNAF UZ, BUY] plans to sell 422.4 thsd mt of oil and 19.5 thsd mt of gas condensate at the Ukrainian Energy resources Auction 123 on November 25.

Ukrainian power generating companies owe UAH 426 mln (USD 69 mln) for coal that has already been supplied to these companies, Deputy Coal Minister of Ukraine Yuriy Yaschenko said yesterday.