KDM boosts revenue 6.5% yoy in August

KDM Shipping (KDM PW), a leading Ukrainian bulk shipping company, reported on September 25 it boosted its revenue 9.5% m/m to USD 1.9 mln in August (+6.5% yoy). The increase occurred on the back of 14.6% m/m higher volume (+12.8% yoy), counterbalanced by a 4.3% m/m decline in average freight rates to USD 26.7/ton (-5.7% yoy).

Roman Topolyuk: As expected, the key driver of the larger volume was a substantial hike in wheat transport following the record Ukrainian harvest in 2013. KDM Shipping boosted its wheat transport to 38.8 kt (+63% m/m, +85% yoy) in August. We see wheat will continue to contribute to shipment growth in the following months. However, the m/m decline in average freight rates is a cause for concern, which combined with weakness in the scrap steel market, can partially offset the grain sector upturn.