Astarta Announced Results in September-October
OREANDA-NEWS. October 26, 2009. As of 22 October 2009, Astarta < AST PW U/R > has produced 100kt of sugar from 700kt of sugar beets (54% of the total area harvested). The Company's sugar beet yield slightly decreased from 52 t/ha in 2008 to 43t/ha in 2009, while its sugar yield grew from 13.5% to 14.8%, respectively. At the same time AST decreased its natural gas consumption by 25%, y/y.
Additionally, the Company has restructured the short term loans extended by ABN AMRO Bank N.V. and Raiffeisen Bank Aval to 2011.
Millennium Capital sees the news to be neutral for Astarta, since the Company’s successful operational results (sales are to grow by around 35%) may be offset by the financial loss as a result of its debt revaluation. Specifically, the average UAH/USD rate is to rise by more than 50% in 2009E, while a majority of the AST loans (around USD 110mn in 1H09 in total) are dollar denominated. This will result in a moderate net loss of AST in 2009.
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