The Ministry of Economic Development and Trade of Ukraine published the report on the results of activity of 100 largest state-owned enterprises during 6 months of 2018.

At present, Ukraine has 3,364 public sector enterprises, of which only 1.594 are active. The amount of assets held by 100 largest state-owned enterprises makes up about 93.3% of the total value of all state-owned enterprises operating in Ukraine. As of the end of the first half of 2018, the total book value of assets held by top 100 state-owned companies amounted to over UAH 1,410 billion, which is almost by 3.8% less than in the same period of 2017.

Based on the results of 6 months of 2018, 100 largest state-owned enterprises gained net profit in the amount of UAH 21.5 billion, which is almost by 41.9% less than in the same period in 2017 – almost by UAH 15.5 billion. The main factor that affected the decrease in the financial result of the portfolio was the decrease in net profit of PJSC “NJSC Naftogaz of Ukraine”, which is about 51% of the total financial result of the entire Portfolio. Thus, in the first half of 2018, its net profit decreased by 60.3% as compared to the same period in 2017, i.e. from UAH 27.7 billion to UAH 11 billion. A significant part of the decrease is due to the increase in the loss of PJSC “Ukrtransgaz”, 100%-owned by NJSC “Naftogaz of Ukraine”, from UAH -1.6 billion to UAH -18.3 billion. The increase in the loss was caused by the revision of the remaining terms of assets involved in the transit of natural gas.

The most profitable industries for large state-owned enterprises remain oil and gas sector as well as electricity. Enterprises of the electricity industry during the first 6 months of 2018 increased the overall financial result by 12.2% from UAH 7.6 billion up to UAH 8.6 billion. Thus, the net profit of SE “National Nuclear Power Generating Company Energoatom” increased from UAH 1.6 billion up to UAH 3.2 billion. This was possible due to the reduction in operating expenses not included in the cost of production, as well as the growth of operating income, which is not related to sales of the products. SE “Energorynok” increased its financial result in the first half of 2018 as compared to the same period in 2017 from UAH 0.6 billion up to UAH 1.8 billion, and SE “NEC Ukrenergo” increased its net profit by 17.9% from UAH 1.9 billion up to UAH 2.2 billion.

Transport industry enterprises showed the decline in net profit in the first half of 2018 by 17.6% from UAH 2.7 billion to UAH 2.2 billion. Thus, SE “Administration of Sea Ports of Ukraine” reduced net profit by 28.6% from UAH 1.8 billion to UAH 1.3 billion. Net profit of SE “Boryspil International Airport” decreased in the first half of 2018 from UAH 0.95 billion to UAH 0.84 billion. PJSC “Ukrposhta” increased net loss in the first half of 2018 from UAH -0.36 billion to UAH -0.53 billion.

At the same time, PJSC “Ukrzaliznytsia” increased its financial result in the first half of 2018 by almost four times from UAH 0.12 billion up to UAH 0.47 billion.

The machine-building enterprises reduced the aggregate financial result in the first half of 2018 by 63.3% from UAH 0.37 billion to UAH 0.13 billion. This was primarily caused by the decrease in net profit of PJSC “Turboatom” by 48.3%, and during 6 months of 2018 it amounted to UAH 0.19 billion.

Enterprises of the food industry reduced their net profit by 58.8% in the first 6 months of 2018 from UAH 0.39 billion to UAH 0.16 billion.

Enterprises of chemical industry showed the growth of net profit in the first half of 2018 by UAH 0.44 billion from the loss of UAH 0.03 billion to profit in the amount of UAH 0.41 billion. All three companies included in the portfolio of the industry (JSC “Odesa Port Factory”, SE “Ukrkhimtransamiak”, SE “Scientific-Production Association Pavlohrad Chemical Plant”) showed positive dynamics of financial result as compared to the first half of 2017.

Enterprises of coal industry included in TOP-100 largest state-owned companies reduced their losses in the first half of 2018 as compared to the first half of 2017 from UAH -2 billion to UAH -1.2 billion. At the same time, 9 mines included in the industry portfolio showed negative financial result in the first half of 2018.

More information on the financial results of the largest state-owned enterprises can be found directly in:

• the report available at: http://bit.ly/2Rk9fyN;

• brief presentation available at: http://bit.ly/2FhOu0f (Ukr), http://bit.ly/2Fhjv44 (Eng),

• Excel spreadsheet.