OREANDA-NEWS. August 2, 2011. Ukrsotsbank (USCB; BUY) reported a net profit of UAH 5.2 mln (USD 0.7 mln) for 1H2011, which is 3.5 times lower than for the corresponding period of 2010. The bank\"s net interest income for the six months decreased by 0.8% YoY, to UAH 1.4 bln (USD 180.4 mln), and net fee and commission income decreased by 0.7% YoY, to UAH 233 mln (USD 29.2 mln). In 2Q2011, its net profit totaled UAH 3.3 mln (vs. UAH 1.9 mln in 1Q2011), which is five times lower than in 2Q2010.

The bank’s total assets for January-June decreased by 3.9% to UAH 40 bln. (USD 5 bln), but its loan portfolio grew by 0.6% to UAH 37.7 bln (USD 4.7 bln). The bank formed loan loss provisions of UAH 7.5 bln (USD 0.9 bln), or almost 20% ​​of the total loan portfolio (vs. 17.6% at the beginning of the year). According to the bank, bad loans amounted to UAH 4.7 bln on July 1, 2011 (or 12.7% of the loan portfolio). The bank directed UAH 2.9 bln of its provision increase toward loans (USD 364 mln).

In January-June 2011, Raiffeisenbank Aval’s (BAVL; HOLD) net profit amounted to UAH 14.8 mln (USD 1.9 mln), which is 2.4 times less than in the corresponding period of 2010. Net profit for the second quarter decreased by 4.6% YoY, to UAH 13.3 mln (USD 1.7 mln). Total assets for the six months decreased by 0.1%, to UAH 55.1 bln (USD 6.9 bln). At the same time, the loan portfolio increased by 0.8%, to UAH 44.2 bln (USD 5.5 bln).

By the beginning of July 2011, the bank formed a loan loss provision of UAH 13.2 bln (USD 1.7 bln), or 30% of the total (vs. 27% on January 1, 2011).

In January-June 2011, Forum Bank’s (FORM; SELL) net loss amounted to UAH 549.4 mln (almost USD  8.9 mln), which is 2.7 times lower than in the corresponding period of 2010. In the second quarter, the bank’s net losses amounted to UAH 251.7 mln (USD 31.6 mln), which is 4.8 times less than in the corresponding period of last year.

The bank’s total assets for the six months decreased by 5.8%, to UAH 13.2 bln (USD 1.7 bln), while total loans decreased by 2.3%, to UAH 13.8 bln (USD 1.7 bln).

By the beginning of July 2011, the bank formed loan loss provisions of UAH 4.7 bln (USD 0.6 bln), or 34% of the total (vs. 31% as of January 1, 2011).

In 1H2011, Khartsyzsk Pipes (HRTR; BUY) earned UAH 196 mln of net profit, or USD 24.6 mln (vs. a net loss of 9.2 mln in 1H2010). The company increased sales by 3.3 times YoY, to UAH 2.7 bln (USD 334.3 mln). The second half of the year is likely to be even better as the company won two tenders, worth USD 113 mln, to supply pipes for the Urengoy-Pomary-Uzhgorod pipeline reconstruction. Under the contract, the company will begin shipping 32.3 mt of 1420 mm diameter double-seam pipes with an external anti-corrosive coating in August. In the future, experts forecast that the company could become a major supplier of pipes for the modernization of the Ukrainian gas transportation system, allowing the company to earn up to USD 2.9 bln over the next nine years.

Ukrnafta (UNAF; SELL) decreased its earnings 1.9 times YoY, to UAH 792 mln (USD 99 mln). Note that the majority of the profit, USD 96 mln, was earned in the second quarter. The company\"s sales rose 75% YoY, to UAH 12.9 bln (USD 1.6 bln), including UAH 6.6 bln (USD 0.8 bln) in the second quarter. We would like to remind readers that 2010 was the most successful year in the company’s history, which now serves as a base of comparison.

Ukrtelecom (UTLM; UNDER REVIEW) posted its second quarter results. The company increased losses by UAH 15 mln (USD 2 mln) in 2Q2011, with losses for 1H2011 now reaching UAH 215 mln (USD 27 mln). In addition, gross profit for 1H2011 decreased by 15% YoY, to 596 mln. Without much-needed structural reforms, Ukrtelecom continues to show weak results even after its acquisition by new shareholders.

Stirol (STIR; BUY) finished 1H2011 in the red. The company’s net loss dropped 47% in 1H2011 to reach UAH 135 mln (USD 17 mln). At the same time, net revenue rose 2.2 times to UAH 2.4 bln (USD 304 mln). Despite the relatively favorable situation in the global fertilizer markets, the increase in gas prices does not allow the company to operate profitably. In addition, the company plans to implement a number of costly programs this year, though they not bring immediate economic benefits. The total cost of these is UAH 600 mln (USD 75 mln). The 2Q loss amounted to just UAH 22 mln, which is less than USD 3 mln.

DTEK Komsomolets Donbasa Coalmine (SHKD) failed to post profits for 1H2011, despite the increase of prices for thermal coal and 1Q2011 profits of UAH 7.4 mln (USD 0.9 million). Net losses decreased 5.4 times, to UAH 1.6 mln (USD 0.2 mln), while net sales increased by 11.6% YoY in the first half of 2011, to UAH 662.1 mln (USD 83.1 mln). It is possible that transfer pricing within the DTEK group is the main cause for the enterprise’s unprofitability.

Pokrovskoe Mine (SHCHZ) posted a net profit of UAH 126.6 mln (USD 15.9 mln) in January-June 2011. In the same period of 2010, the company ended with a net loss of UAH 90.2 mln (USD 11.3 mln). In 1H2011, net sales increased by 11.43% YoY, to UAH 1.76 bln (USD 220.8 mln).

Ukrlandfarming’s acquisition of Rise agroholding has had a positive impact on the financial results of the latter. In April-June 2011, Rise has increased sales by 91.3% YoY, to UAH 1.15 bln (USD 144.3 mln), while net losses declined by nearly 59 times YoY, to UAH 380 thnd (USD 48 thnd). The agricultural holding’s total earnings for 1H2011 earnings has increased by 48.6% YoY, while net profit increased 43% YoY, to UAH 1.67 mln (USD 209.5 thnd).

In 1H2011, Turboatom (TATM) has increased its net profit by 65% YoY to UAH 208.2 mln (USD  26.1 mln), whiles sales rose 15.2% YoY, to UAH 602 mln (USD 75.5 mln). Thus, the company’s net profit margin amounted to an impressive 34.5%.

In 2Q2011, Enakievo Steel (ENMZ; BUY) has reduced its loss 21% YoY, to UAH 210 mln (USD 26.3 mln). The company increased its net profit by 47% YoY, to UAH 3.7 bln (USD 460 mln). Thus, net losses for 1H2011 reached UAH 625.4 mln (USD 78.5 mln), while net sales grew 49.3% to reach UAH 6.5 bln (USD 819 mln).

Mariupol Illich Iron and Steel (MMKI; BUY) posted a net loss of UAH 157.4 mln (USD 19.7 mln) in 2Q2011, compared to a net profit of UAH 296 mln (USD 37 mln) in 2Q2010. In the second quarter, net revenue grew by 38.7% YoY to UAH 8.7 bln (almost USD 1.1 bln).

Overall, the company’s net loss equaled to UAH 647.3 mln (USD 81.2 mln), compared to a net profit of UAH 253 mln (USD 32 mln) in 1H2010. Its net revenue grew by 43.8% YoY, to UAH 16.5 bln (USD 2.1 bln).

In 1H2011, Stakhanov Railcar (SVGZ; HOLD) increased its revenue by 63% YoY, to reach UAH 2.04 bln (USD 256 mln). Its net profit dropped 14% YoY, to UAH 120.8 mln (USD 15.1 mln).