Brief: Kernel Holding Estimates Capex Required To Repair Damages After Russian Attacks At Min. $20 Mln

Kernel Holding SA

21/08/2023 06:55

Aug 21 (Reuters) - Kernel Holding SA  KER.UAX :
    * PRESENTED ON FRIDAY UPDATE ON OPERATIONS
    * THE CURRENT PRELIMINARY ASSESSMENT OF THE REQUIRED CAPITAL
EXPENDITURE TO REINSTATE AND REHABILITATE THE EQUIPMENT THAT
SUSTAINED DAMAGE OR WAS DESTROYED DURING THE RECENT RUSSIAN
ATTACKS STANDS AT A MINIMUM OF $20 MILLION
    * THE REPAIR PROCESS, FOR SOME INSTANCES, IS PROJECTED TO
EXTEND
UP TO 12 MONTHS, HIGHLIGHTING THE SUBSTANTIAL SCOPE OF
RESTORATION NEEDED
    * THE ESTIMATED MARKET VALUE OF THE COMMODITIES LOST AS A
RESULT
OF THESE ATTACKS IS APPROXIMATELY  $12 MILLION
    * BOTH THE EQUIPMENT AND INVENTORIES AFFECTED ARE DEVOID OF
INSURANCE COVERAGE AGAINST SUCH UNFORESEEN EVENTS
    * GRAINS EXPORT IN JULY 2023 AMOUNTED TO A MERE 10 THOUSAND
TONS,
SUNFLOWER MEAL SHIPMENTS DROPPED TO 33 THOUSAND TONS, AND
SUNFLOWER OIL SALES TOTALLED 84 THOUSAND TONS
    * THE GROUP ACQUIRED ASSETS USED IN THE TRANSSHIPMENT OF
VEGETABLE
OILS IN THE PORT OF CHORNOMORSK FOR $19.4 MILLION
    * THE GROUP ALSO ENTERED INTO AN AGREEMENT TO ACQUIRE 100%
OF
CORPORATE RIGHTS IN RENI-OIL, A SUNFLOWER OIL TRANSSHIPMENT
TERMINAL WITH 15 THOUSAND TONS OF ONE-TIME SUNFLOWER OIL STORAGE
IN THE RENI PORT FOR $24.75 MILLION
    * OUTLOOK FOR THE HARVEST IN UKRAINE IN GENERAL IS
SUPPORTIVE, THE
GROUP ENVISAGES AN INCREASE IN THE PRODUCTION BOTH OF GRAIN AND
OILSEEDS, AS COMPARED TO THE PREVIOUS YEAR
    * FY2024 EARNINGS OUTLOOK AT THE BEGINNING OF THE SEASON
IMPLIES A
SIZABLE EBITDA DECLINE DUE TO UNDERMINED PERFORMANCE OF BOTH
FARMING AND INFRASTRUCTURE AND TRADING SEGMENTS DRIVEN BY
RELATIVELY WEAK GLOBAL GRAIN PRICES AND EXPENSIVE EXPORT
LOGISTICS
    * OILSEED PROCESSING SEGMENT, ON THE CONTRARY, IS EXPECTED
TO BE
THE MAJOR PROFIT DRIVER FOR THE GROUP IN FY2024
    * THE COMMISSIONING OF THE GROUP’S BRAND-NEW CRUSHING PLANT
IN THE
KHMELNYTSKYI REGION IN UKRAINE IS SCHEDULED FOR SPRING 2024

        
 Source text for Eikon:  urn:newsml:reuters.com:*:nEM8vfLLNa
 Further company coverage:  KER.UAX  

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