Daily monitor

During 5M08, Alchevsk ISW [ALMK UZ, BUY] increased rolled products output 41.3% to 1.978 mln mt. Steel output rose 37.4% to 2.151 mln. Pig iron output increased 54.6% to 1.899 mln mt, whereas sinter production actually decreased by 1% to 2.086 mln mt.

Astarta [AST PW, U/R], Ukrainian sugar refinery, gets a 3 month bridge loan from ABN AMRO. The agreement was signed on May 29, 2008. According to the Warsaw Burse officials, “Tsukrovyk Poltavshyny” ltd and “Astarta – Kyiv” ltd are stated as collaterals for the loan. The company is planning to invest the money into buying new agriculture equipment and improving of working capital.

Khartsyzsk Tube Works [HRTR UZ, Sell] increased its output in May 2008 25MoM to 42 thsd metric tons of pipes. The mill also produced 109 thsd metric tons of pipes in 5M2008, reducing its production 63.5% YoY. Khartsyzsk Tube Works is the largest Ukrainian producer of large-diameter pipes and its production capacity is about 1.6 mln tons of pipes per year.

Milk Group, part of the group Western Milk, launched a new line for cottage cheese production with a daily capacity of 5 mt of cottage cheese.

Electricity distribution company Kirovogradoblenergo [KION] announced a dividend payout of USD 3.8 mln at its AGM Friday, May 30.

The National Bank of Ukraine will implement a direct FX interbank market in Ukraine, according to NBU Chairman Vladimir Stelmakh.

Concern Galnaftogaz [GLNG UZ, Speculative BUY] released selected 1Q08 consolidated financial results under Ukrainian Accounting Standards.

Electricity distribution company Khersonoblenergo [HOEN] decided not to pay out dividends for 2007 during its AGM held Thursday, May 29. Shareholders decided to direct 95% of the company’s USD 0.043 mln FY07 net income to business development and 5% into the company’s reserve fund.

The National Electricity Regulatory Commission (NERC) approved a 30% nuclear electricity price appreciation starting June 2008, sending the price for nuclear electricity to USD 29 per MWh. This implies a nuclear electricity price appreciation of 70% YtD from USD 17 per MWh in the beginning of the year.

The National Electricity Regulatory Commission (NERC) has approved an industrial electricity tax appreciation of 4-5%, beginning in June. Low voltage industrial electricity consumers will see a tax increase of 4% to USD 96 per MWh and high voltage industrial electricity consumers will be handed a 5% increase to USD 73 per MWh.