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UMG’S EBITDA FALLS BY 27%, REVENUES BY 6%, INVESTMENTS UP OVER A QUARTER IN 2015

According to preliminary estimates, UMG, which incorporates mineral extraction and processing assets of the SCM financial and industrial group, registered a year-on-year 26.9% decrease in EBITDA to $76m and a 6.3% decline in revenues to $164m in 2015.

28 January 2016

UMG Holding President Andrey Gorokhov announced on January 28 that the company had increased its investments to $9m in 2015 from $7m the previous year.

Meanwhile, the company paid $27m in taxes in 2015 ($35m in 2014).

Gorokhov also said that UMG plans to maintain or slightly reduce investment in 2016, of which $6m will go towards clay extraction, $1m–$2m into the flux and dolomite companies, and the balance into the Holding’s other business sectors.


“The investments will be used to develop existing facilities and improve operational efficiency,” Gorokhov explained.

The company’s key production figures for this year are: production of clay—2.4m tonnes, limestone—2.7m tonnes (raw materials reserves —821m tonnes), processing and sale of CHP by-products—348,300 tonnes, sale of agricultural products—77,600 tonnes, sale of mineral fertilizers—16,000 tonnes, extraction and processing of rare and technical gases—20,200 cu. m.

Five-year strategic targets (2016–2021): annual clay extraction—3m tonnes (growth of 600,000 tonnes), annual limestone and dolomite production—4m tonnes (growth of 1.3m tonnes), annual processing and sale of CHP by-products — 1m tonnes (640,000 tonnes more), gas extraction and processing (2018 targets)—37,400 cu. m. of rare gases and 13,800 cu. m. of technical gases.

In 2007–2015, UMG invested a total of $82m and plans to invest $115m in 2016–2030 to support current production.

UMG is a diversified holding operating in the commodities, industrial, and trading areas. It was founded in 2006 as a clay extraction business.

The company pursues three key lines: clay extraction, limestone and dolomite production, processing and sale of CHP by-products. The company actively promotes new commercial areas, such as trading in mineral fertilizers, agricultural products, rare and technical gases.

UMG’s portfolio includes 10 projects at various stages of implementation.

UMG operates 16 quarries and 10 ash dumps.

The company has a workforce of about 4,000 people and has clients in 30 countries worldwide.

The diversified SCM group holds a 100% stake in UMG’s authorized capital.

Source  interfax.com.ua