Kernel Holding Announced Q2 FY2013 Operations Update

OREANDA-NEWS. January 23, 2013. Kernel Holding S.A. is pleased to publish the Operations Update for the three months ended 31 December 2012.

Production, sales and throughput:

1. Three months ended 31 December 2012

2. Three months ended 31 December 2011

3. Including 201,043 tons transshipped through Taman port, which represents 50% of total throughput volume of Taman facility. Taman port is owned through 50%-50% joint venture between Kernel Holding S.A. and a subsidiary of Glencore International Plc.

4. Six months ended 31 December 2012 and 2011 respectively

Key highlights:

82.1% yoy growth in grain sales reflecting a higher pace of grain exports from Ukraine this marketing season owing to market-wide anticipation of a wheat export ban and stronger prices increasing farmers' willingness to sell.

Close to full capacity utilization at crushing plants, an earlier start of the marketing season, and larger shipments of contracted sunflower oil resulted in an increase of bulk oil sales to record quarterly levels of 382,680 tons, up 66.4% yoy.

The decline in domestic bottled oil sales reflects lower deliveries to customers as a higher volume was exported in bulk.

31,650 ha sown with winter wheat for FY2014 harvest; the share of the winter wheat decreased according the company's continued improvement of the crop structure.

Corporate:

The AGM appointed Mr. Sergei Shibaev as a new independent director of the Company, increasing the Board composition to eight directors, three of whom are independent.

USD 170 million dual-tranche facility agreement entered in late December to refinance the existing corporate debt.