• Sept 28, 2016

    View on Ukrainian agri-holdings biological assets revaluation

    Its a common knowledge that during last several years Ukrainian agri industry has been one of the most appealing sectors of Ukrainian economy. But it is also obvious that management credibility remains one of the main risks for investors and creditors of Ukrainian agri-holdings.

    Cases of Mriya, Sintal, Ukrzernoprom, and less notorious ones, like Ukrlandfarming and KSG Agro largely worried foreign investors and can be seen as factors that impede foreign investments into attractive in general industry. Transparency of reported figures and their general credibility are real concerns of foreign investors and creditors, while biological assets and sometimes overly aggressive accounting assumptions (mis)used for their revaluation can be selected as one of such points of concern. Read more...

  • Nov 10, 2015

    Kernel: strong results in FY2015, question is how far they are sustainable

    As expected after interim financials publications Kernel demonstrated quite good operating and financial results in its FY2015 (which ended 30.06.15). The company keeps to its leading positions as the largest oilseeds crusher in Ukraine and one the leading grains traders in Black Sea region. Having made significant investments into infrastructure and built vertically integrated business structure, and as debt burden of the company has never historically been on higher than average level, up to the moment the company seems to be resilient to negative developments: either to weak operating performance of some of its business directions (like negative results of farming business in FY2014) or to negative macro/market developments.

    In FY2015 Kernel revenues in money terms were close to the level of previous year (at USD 2.3 bln), two main business direction bulk sunflower oil (SFO) production and grains trade accounted for close to 47% of total realization each, while realization in other directions farming, terminals and silo services have been mainly Intragroup. For main business directions increased volumes in natural terms compensated for decline in realization price, resulting in stable in money terms sales. Read more...

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Wheat CBOT
Iron Ore
Crude Oil

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