Daily News

  • Gas Ukrainy Resumes Supply To Kyivenergo (KIEN)

    Gas Ukrainy, Ukraine's largest gas supplier and a subsidiary of state company Naftogaz, has resumed gas deliveries to Kiev CHPP #5 and #6 leased by Kyivenergo. On 16 February, Kyivenergo shut down its first power unit of CHPP 6 because of gas supply limitations. Supplies were restructured due to Kyivenergo?s debt to Gas Ukrainy. Kievenergo plans to settle the debt by April. Concorde Capital: Kievenergo requested that debt payment be prolonged until April 2005, but Naftogas refused. A new head of Naftogas was appointed earlier this month and the supply conflict has been resolved. Now we will see if KIEN will be able to pay its debts by the end of the month.

  • Cherkassyoblenergo Announces 2004 Results

    Regional distribution company Cherkassyoblenergo (CHON) posted net revenues of USD 58 mn and net losses of USD 6.6 mn. Concorde Capital: Cherkassyoblenergo supplies the Cherkassy region located in central Ukraine. CHON stocks are illiquid and not traded on the PFTS. We rank CHON #15 out of 26 Oblenergos (see our 28 February Oblenergo report).

  • January Crude Steel Output

    January steel production data was published for several steel mills today and yesterday:
    Jan-05 Dec-04 Chg mom,% Jan-04 Chg yoy,%
    AZST 487.5 529.2 -7.9% 464.0 5.1%
    KRST 579.3 572.2 1.2% 628.9 -7.9%
    DMK
    Dzerzhynskogo 294.3 233.1 26.3% 306.6 -4.0%
    ALMK 306.9 293.4 4.6% 309. -0.8%
    DMZ
    Petrovskogo 77.8 46.9 65.9% 110.1 -29.3%

  • Ukraine?s GDP Rises By 4.5% YoY In Feb

    As a result of the February increase, GDP increased 5.5% YTD. January?s gross domestic product increased by 6.5% yoy. Concorde Capital: This year?s pace of growth is two times lower than in 2004, as expected. A slowdown in industrial output (7.3% versus 18.2% in Jan-Feb 2004) and wholesale and retail trade (1.8% versus 9.4%), as well as negative growth rates in construction, contributed to the lower real GDP growth. Among the growth factors was the processing industry (up 8.5% yoy) and transportation (up 7.2% yoy). The government forecasts an 8.2% GDP growth in 2005. We are slightly less optimistic and still maintain our 7% GDP growth estimate for this year.

  • Oil Transit Up 4.0% YoY To 5,341 Ths Mt, In Jan?Feb

    Oil shipments increased through the Druzhba pipeline by 13.0% yoy to 3,502 ths mt. Transit through the Prydniprovski pipeline was down by 10.0% yoy, to 1,839 ths mt.

  • Oil Refining Falls By 8.0% YoY In Jan ? Feb

    In Jan-Feb, Ukrainian refineries cut crude refining by 8.0% yoy to 3,208.7 ths mt. In February alone, refining was reduced by 21.3% yoy to 1,544.5 ths mt.

  • Dniprospetsstal (DPST) To Invest USD 45 Mn In Modernization In 2005

    The program will focus on purchasing equipment for Dniprospetsstal's drop-hammer shop and reconstruction of steel smelting shops #2 and #3. Concorde Capital: Part of the capital expenditures will be directed into construction of new electric furnace which will cost DPST EURO 10 mn. The estimated CapEx/Output ratio (USD 90 per mt) is considerably higher than other Ukrainian investment leaders, such as ALMK (with an average investment of USD 60 per mt) and ZPST (with an average investment of USD 50/per mt). Unlike other Ukrainian steel mills, DPST focuses exclusively on high-grade specialty steel, which is the highest price segment, so we can expect relatively higher return from DPST?s per-mt investment.

  • DMK Dzerzhynskogo To Supply Billets To Italian Duferdofin For Re-rolling

    DMK Dzerzhynskogo, controlled by the Industrial Union of Donabss (IUD) will manufacture special billets to be re-rolled at Duferdofin. The Italian Government already approved a grant for implementation of this project. The implementation of this project will ensure stable operations for Duferdofin and afford the opportunity for IUD to have its own re-rolling facilities in Italy, according to company representatives. Concorde Capital: Duferdoin is the steel division of IUD?s main partner Duferco. IUD is successfully implementing its strategy to produce semi-finished good at its Ukrainian mills and further re-roll them at its own as well as Duferco?s capacities in Europe and the USA. This scheme will allow the company to avoid protection measures on markets closed for other Ukrainian steel.