DMK Dzerzhynskogo AGM Results
7 June 2008
The company’s June 3 AGM approved the subscription for an additional issue, which increased its charter fund by 17% to USD 136 mn. The company declined to pay dividends for 2004, as its profitability was poor (1.1% net margin). In 2004, DMK plans to increase net income by 25% to USD 16 mn. The shareholders appointed Oleg Dubina as the company’s general director. Concorde Capital: Almost all DMK’s profits are accumulated by its majority shareholder, the Industrial Union of Donbass (IUD). Therefore, we do not expect the company to improve its official financial reporting any time soon. The new general director, Dubina, is well-known in the Ukrainian steel industry and rose to fame in the early 2000s, after making Kryvorizhstal (KRST: BUY) the most profitable metallurgical company in Ukraine. During the Kuchma regime, Dubina was First Vice Prime Minister and president of the Energy Company of Ukraine. With his new appointment, IUD will attempt to intensify the modernization process at the plant and make its obsolete facilities more efficient. This is a very positive development for the company.
