‘Centerenergo’ company substantially increased its net income

invest i n Ukraine: Centerenergo’s net income increased substantially

This article deals with #financial performance in the first half of 2016 of one of the main lots of the #privatization programme in Ukraine, aimed to boost #investing in Ukraine, namely #‘Centerenergo’ company.

Visit our website if you are interested in #doing business in Ukraine or looking for new #investment opportunities.

‘Centerenergo’ company announced that in the second quarter of 2016 it managed to generate net income in the amount of UAH 416.5 million (approximately USD 16.6 million). In the same period in 2015 the company had losses in the amount of UAH 38.4 million (approximately USD 1.5 million).

Overall, in the first half of 2016 the net income of ‘Centerenergo’ company reached UAH 686.4 million (approximately USD 27.5 million).

We note that the Head of the State Property Fund of Ukraine announced that privatization of 78.9% of shares of ‘Centerenergo’ company, which was previously scheduled in November 2016, will be postponed until first quarter of 2017. Prior to the auction the Cabinet of Ministers of Ukraine shall determine conditions of sale and initial bid price.

In addition, the Head of the State Property Fund of Ukraine also stated that it has not yet been decided whether the company will be sold as a whole or in part. This is due to the fact that some of the production facilities are located in Donetsk region and therefore might not be attractive to potential purchasers and investors.

We note that in accordance with the state budget of Ukraine it is expected to attract over USD 17 billion through privatization process in 2016. As of January 2016, there are over 4000 enterprises in which the state has its share. Such enterprises are active in construction, energy, agriculture, chemistry and transport industries. At the moment, there are around 450 entities to be privatized, including 30 large and 50 middle sized state owned companies. The State Property Fund of Ukraine aims to conclude privatization within three to five years.

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