REUTERS
Ukraine's major chemical company Odesa Portside Chemical Plant (OPP) reduced its net loss by 56.5% in January-June 2017 (H1) year-over-year (y-o-y), from UAH 243.9 million, or US$9.4 million, to UAH 108.2 million, or $4.2 million, according to the company's quarterly report in the National Securities and Stock Market Commission's information disclosure system.
The OPP's net revenue from sales of products in H1 2017 shrank by 76.8% y-o-y, from UAH 3.172 billion ($123 million) to UAH 741 million ($28.6 million), the report said.
The company's gross profit over the period under review decreased from UAH 194.9 million ($7.5 million) to UAH 130.8 million ($5.1 million).
As UNIAN reported earlier, the third attempt to sell 99.6% of OPP shares with a starting price of UAH 5.16 billion ($199.6 million) failed in December 2016. In this regard, its further operations were threatened to be halted as the company had a nearly $193 million debt before Ostchem owned by Ukrainian businessman Dmytro Firtash, and more than a UAH 1.5 billion ($58 million) debt before NJSC Naftogaz of Ukraine. What is more, a contract for gas supplies to the plant expired on December 31, 2016.
The OPP, whose operations were suspended at the end of 2016, resumed the production of ammonia and carbamide on March 6, 2017. However, its management decided to halt the production on July 10.
Read alsoWeek’s balance: economy sees growth, war for OPP unleashed, emergency measures in energy sector continueAccording to a recent memorandum on cooperation with the International Monetary Fund, Ukraine had to take all necessary measures to attract international investors and sell the Odesa Portside Chemical Plant in the first half of 2017.
Late in June 2017, Deputy Head of the State Property Fund Yuriy Nikitin said that in the best case, the OPP's privatization would be possible late in 2017.
The government of Ukraine postponed a large-scale privatization campaign until the adoption by the Verkhovna Rada of a new law on privatization, which could be considered in September.
UNIAN memo. The OPP, which is located in the town of Yuzhny in Odesa, is Ukraine's second-largest ammonia and carbamide producer and the third-largest manufacturer of nitrogen fertilizers.
The company also handles shipments of chemical products arriving from CIS countries and exports. The company holds a monopoly in the national market of specialized services for the receipt, cooling and transshipment of ammonia.