Daily monitor

In 2M2010, iron ore exports from Ukraine increased by 73% YoY to reach 5 mln tonnes.

Kryukiv Railcar [KVBZ UZ, BUY], a leading Ukrainian producer of both freight and passenger railcars, reported a decline in output of passenger cars in January-February 2010 by four times. At the same time, the output of freight railcars rose three-fold in the same period.

Sumy Frunze Machine Building [SMASH UZ, U/R], the leading CIS manufacturer of machinery equipment for the oil and gas industry, has successfully delivered three gas turbine blocks to the Russian-based Surgutneftegaz. The equipment is designed for one of the client’s power plants and has an aggregate power of 36 MW. The purpose of the equipment is to utilize the associated gas for producing electricity (earlier, Surgutneftegaz burned associated gas in flares.

The Brazilian iron ore giant Vale may increase its domestic price for iron ore by 80%. This increase may consist of two stages: a 40% hike in March and another 40% in April to soften the impace of the input price for Brazilian steelmakers.

The Economic Court of the Kharkiv Region has fully satisfied the claim of one of Turboatom’s minority’s shareholders (Svarog Asset Management), which declared the decision taken by TATM shareholders at its AGM (held on February 4, 2010) to be invalid. In particular, as a result of this decision, the dividends payment that was adopted at the AGM was blocked (the shareholders had decided to pay out UAH 44.1 mln in dividends).

AvtoKrAZ [KRAZ UZ, N/R], a Ukrainian producer of heavy trucks, has reported a decline in February production by 99.1% MoM (the Company produced only one car). At the same time, ZAZ, a leading Ukrainian auto manufacturer, reported a rise in production by 194% MoM, as the Company produced 770 cars in February vs. 262 in January.

As of March 5, importers’ claims for raw cane sugar imports to Ukraine reached the 87% mark of the quota set by the World Trade Organization. The quota level for 2010 is 267.8 thsd tonnes. The largest share of the total import volume will come from Brazil (73.6%). The claims were filed by Ukraine’s major sugar producers; namely by Astarta [AST PW, BUY], the Ukrros sugar union [UROS UZ, BUY], Ukrprominvest, Rise, and the Dakor Agro Holding.

The Astarta agro-holding [AST PW, BUY], a major Ukrainian sugar producer, has released its preliminary consolidated 2009 financial results. Its consolidated revenue grew 40% YoY to UAH 1 358 mln (down 8% in USD terms to USD 170 mln). Its gross profit increased 75% to UAH 443 mln, while its gross margin was 33% vs. 26% in 2008. Its EBITDA was up 148% to UAH 555 mln (in USD terms, EBITDA rose 62% to USD 69.4 mln). The EBITDA margin constituted 41% vs. 23% in 2008.

In 2M2010, Pivnichnyi GOK managed to boost its pellets output by 33% YoY to reach 1,7 mln tonnes, while its output of sinter feed grew by 20.4% to 2.3 mln tonnes.