The Ukrainian investment company UMG Investments presents its performance figures. In 2019, the value of assets managed by UMG Investments company exceeded $ 500 million. Today, UMG Investments has portfolio companies in three industries: mining, by-products and production wastes management, industrial goods and services.
The mining portfolio is represented by the VESCO Group of companies and the NTRU (Novotroitsky Mine Administration).
One of the leading producers of clay minerals in Ukraine and one of the global leaders in the production and export of white plastic clays, the VESCO Group sold 2.7 million tonnes of clay in 2019. About 86 % of VESCO clay was sold in export markets of 25 countries. The company received UAH 3 769.9 million in revenues. Taxes and dues transferred to the state budgets of different levels in 2019 amounted to over UAH 487.3 million.
The Novotroitsky Mine Administration is one of the largest producers of limestone in Ukraine with a production volume of 4 million tonnes per year. In 2019, the NTRU shipped 4.2 million tonnes of its products and received UAH 1,081 million in revenues. The company spent more than UAH 42 million on the purchase of new equipment for improving working conditions and the process safety system. UAH 288.4 million was transferred to the local and government budgets.
The by-product and waste management portfolio is represented by Recycling Solutions, which is a comprehensive secondary resource management operator for coal, coke-chemical, metallurgical and thermal power sectors of Ukraine. In 2019, Recycling Solutions sold more than 2.2 million tonnes of industrial wastes and 1.49 million m3 of by-products produced by domestic enterprises in 22 countries, contributing to the implementation of circular economy principles. Sales volume of industrial wastes increased by 22 % compared to 2018. The company received UAH 836 million in revenues, which is 27 % more than last year. More than UAH 179 million has been invested in “green” business projects, mainly in the construction of a facility for processing ammonium sulphate, a by-product of steel industry, in Kryvyi Rih. Sales of industrial waste and by-products brought in UAH 58.2 million in taxes to the state budget.
The industrial goods and services portfolio is represented by INTECH, a company operating in production of industrial goods and services as well as railway logistics and offering commercial expertise of business projects in various industries. In 2019, the net profit of INTECH combined with its managed assets amounted to UAH 2,760 million, which is 39 % more than in 2018. The company set an all-time record in all its business segments: supply volume of metal industry products reached 43.7 thousand tonnes, showing a 32 % increase; the growth of shipments in logistics reached 38 %, and its own wagon fleet increased to 200 wagons; INTECH-managed Kryvbasvybuhprom PJSC set a record for the last 8 years, which is 49.5 million m3 and is 17 % higher than in 2018. Furthermore, the company revamped its management team and implemented an investment program worth almost UAH 23.7 million. UAH 286.3 million of taxes have been transferred to the state budget.
“For three years in a row, UMG Investments has been working on a new business model. We are focused on bringing in new people to our investment team and strengthening it, expanding our industry expertise, finding new investment projects. In 2019, portfolio companies managed by UMG Investments received total revenues amounting to $ 296 million, showing a 17 % increase compared to last year. In total, we paid over 1 billion UAH in taxes to the state budget,” said Andriy Gorokhov, CEO at UMG Investments. “This year, we are ready to announce the expansion of the project portfolio. We aim to complete the construction of a facility for processing ammonium sulphate, a by-product of steel industry, in Kryvyi Rih and complete the project for disposal of coal mine methane at Stepova mine in Pershotravensk, which is currently undergoing pilot testing. We are also in the process of finalising the terms of joining several new external projects. As a local investor, we have a clear understanding of the market, and we are positive that there are attractive investment projects and industries in Ukraine that need private funding. The eight-fold increase in the value of managed assets since 2006 allows us to assert with confidence that we have sufficient management experience to expand our investment portfolio and further grow our portfolio companies.”