Finalizing results of 2014, we note that Ukrainian Agrarian Index, tool used by UkrAgroConsult to reflect capitalization of Ukrainian agrarian companies, lost 56% of its value. Not a single company gained value in 2014, as lowest decline was indicated by Agrokultura – of -0.09% over the year, however the company was delisted in the end of the year and is no longer traded since December 27, 2014. Second place is held by Ukrproduct with a decline of -17.23%. Highest drop in capitalization was indicated by two most problematic companies of the year – KSG Agro and Mriya with -89.54% and -89.13% capitalization decline respectively. KSG Agro failed to provide financial reporting in timely manner during spring of 2014, as it was temporarily excluded from trading on Warsaw Stock Exchange. At the moment, company is reinstated on exchange and continues its operations as per usual. Mriya failed to pay interest on bonds in the end of the summer and currently is undergoing debt-restructuring procedure, which is also turned out to be quite a problematic procedure sue to unwillingness of company’s owners to cooperate with debtholders, according to the latter. Overall UAIndex fell from EUR 4 147 million on January 1, 2014 to EUR 1 821 million on January 2, 2015. We believe that slight decline will continue through 2015 with slight improvement towards the end of the year. Geopolitical climate in the region will have direct effect on market capitalization indicator.

Ukrainian Agrarian Index includes 14 companies as of January 5, 2015: Myronivskiy Khliboproduct, Kernel, Mriya, Agroton, Astarta, Agrogeneration, Avangard, Milkiland, IMC, KSG Agro, Ovostar Union, Agroliga and Cereal Planet. 2 companies were excluded from the Index in 2014: Sintal due to abrupt exclusion of company’s shares from Vienna Stock Exchange due to violations and Agrokultura due to delisting from Stockholm Stock Exchange.

UkrAgroConsult issues quarterly report “Agrarian Business in Ukraine”. Report covers quarterly operating and financial results of Public Ukrainian Agrarian companies. January Q1 2015 issue will include summary of 2014 results, as well as our forecast for 2015.  You can subscribe to the report to receive it on a quarterly basis.

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