Ukrainian Sugar Producers Will Cut Costs
OREANDA-NEWS. October 23, 2009. The Cabinet of Ministers recommended that the National Electricity Regulatory Commission reduce natural gas prices by 38% down to UAH 1584 per tсm for domestic sugar producers. The recommendation is to be considered on 28 October 2009, while the reduced gas price is to come into effect on 1 November 2009.
Millennium Capital sees the news to be positive for sugar producers, such as Astarta < AST PW U/R >, Ukrros < UROS UZ U/R > and Dakor < WI81 GR N/R >, since the share of the natural gas cost in their total costs amounts to around 20% for AST and UROS, and 10% for Dakor. This gas price decrease will help reduce the average sugar production cost of the above companies by 8% and 4%, respectively.
Millennium Capital is an integrated financial services provider. Established in 2000 by a group of professionals with solid background in securities and corporate finance, Millennium Capital is now one of tickets selling for its flights due to high arrearage to the creditors of the company.
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