31 October 2017

The company demonstrated record-high for the last years volumes of quarterly sunflower oil sales.

Key figures*

	Q1 FY2018	Q1 FY2017	Change, %
Oilseeds crush, k tons	542.4	280.0	94%
Sunflower Oil sales, k tons	425.4	188.6	125%
Grains sales, k tons	804.7	1180.9	-32%

*-financial year of the company starts in July and finishes in June of the following year

Due to high sunflower seeds stock as of the beginning of period, oilseeds crushing volumes in reporting quarter have been on the highest level for Q1 of the last four financial years. Volumes of crush made 542k tons, quarterly dynamics during last years looked as follows:

Total volume of sunoil sales in Q1 FY2018 made 425k tons, which is record-high volume of quarterly oil sales for the last years (and is by more than two times higher y-o-y).

Volume of Kernel grains sales in reporting quarter made 805k tons, which has been by 32% lower y-o-y. Grains export from Ukraine decreased by 13% (due to delay with start of harvesting campaign), from Russia – by 81%.

The reason of so sizable Russian grains export volumes fall is the fact that Kernel signed an agreement with the third party to assign a portion of its FY2018 transshipment quota in Taman terminal on take-or-pay basis. It should lead to decrease of grains export from Russia, but is to preserve income from transshipment operations.

Total volume of grains transshipment through port terminals in Q1 FY2017 made 1.3M tons (-7% y-o-y).

In its report Kernel discloses its expectations on yields for the current year’s crop. Interesting is break-down of yields between “old” land bank (operated by Kernel during last years) and “new” one (which belonged to recent acquisitions – UAI and Agro-invest). Main figures look as follows (as of October 20 Kernel already harvested 31% of corn, 96% of soybeans and 92% of sunflower seeds):

Óðîæàéíîñòü îñíîâíûõ êóëüòóð

	Average 2017/2018	New land	Old land	2016/17
Corn	6.7	5.4	7.3	8.9
Wheat	4.9	4.2	5.4	5.8
Sunflower	2.4	1.8	2.8	3.0
Soybeans	1.8	1.4	2.0	2.7

Main page
All about Kernel

Popular on site:
Kernel reports financials for FY2017
Ukrainian grains market
Ukrainian sunflower seeds and oil market