The agriproduct company Kernel in the third quarter of 2020 financial year (FY: July 2019 – June 2020) has enlarged the grain export comparing to the same period of FY 2019 by 41% i.e. up to 2.15M t, as the company’s report shows.
According to the paper, the company’s own produced grains comprised 35% of the export, the rest being provided by exterior suppliers.
The company’s export terminals in Ukraine have amplified grain handling by 66% i.e. up to 1.94M t supported by the considerable growth of grain outcome and share increase by TransGrainTerminal.
The sunflower oil sales plunged down by 2% to 380,900 t, while the same seeds processing jumped by 4% – up to 940,650 t.
Kernel is the world largest manufacturer and exporter of sunflower oil and a major producer and supplier of agriproduct from the Black Sea region worldwide. The company’s vertically integrated structure combines adjacent business sectors as production, export and domestic sales of sunflower oil; plant cultivation, exports of grains; providing grain storage and handling services by elevators and port terminals.
Kernel’s land bank embraces 550,000 hectares. The company owns and operates the grain terminal TransBulkTerminal in Chornomorsk Port capable of annual 4M t, and exports goods to over 60 countries. LLC TransGrainTerminal controlled by Kernel is busy with the erection of a new grain terminal in the sea trade port of Chornomorsk to boast 4M t per annum as well.
In September 2019 Kernel and Ukrainian sea ports authority (USPA) signed an agreement on cooperation envisaging more than 3Bn UAH of investments in the Chornomorsk Port infrastructure development.
Meantime, the international rating agency Standard & Poor’s Global Ratings confirmed Kernel’s long-term credit rating at B level, and the forecast as “stable”.
S&P still foresees a negative free cash flow from Kernel’s operational activities in 2020, and, according to the report, the forecast “stable” implies the thought that COVID-19 pandemic will not affect Kernel’s export numbers, and the company is going to stabilise its credit indices and re-finance within the next 12 months its Eurobonds with the retirement in January 2022.
The stock of Kernel Holding S.A. is quoted by Warsaw Stock Exchange since 2007. In FY 2019 the company enlarged its net profit in comparison to FY 2018 3.6 times up to $189M, thanks to grain sales grown 2.2 times up to 10.445M t, and the sunflower oil sold by 15% more – i.e. 1.6M t. The grain exports from Ukraine increased by 58% up to 6.1M t, while the grain transhipment rose by 12% up to 4.6M t, the contrary to grain handling by Kernel terminals in Russia that fell by 28% down to 1.4M t.
https:/ports.ua/v-tretem-kvartale-2020-fg-portovye-terminaly-kernela-uvelichili-perevalku-zerna-na-66/
https://interfax.com.ua/news/economic/656745.html