Ukraine's Kernel Holding core profit jumps 41% on commodity trading in Q3
June 1 (Reuters) - Ukraine's largest grain exporter Kernel Holding KER.UAX reported a 41% year-on-year rise in its third-quarter core profit on Friday, as a surge in trading profits at its Avere unit helped offset continuing disruption from Russia's war on Ukraine.
The grain exporter and sunflower oil producer said prolonged air-raid alerts left its export terminals idle for a cumulative equivalent of 33 days in the nine months through March 31.
Quarterly core profit at Kernel's trading, grain-export and logistics business rose 65% from a year ago to $101.9 million, led by Avere's trading operations
Avere Commodities, Kernel's Switzerland-based trading arm, generated $66.6 million in core profit, up from $17.3 million in the previous three months
The group's net profit more than doubled year-on-year to $89 million, while revenue grew 3% to $1.18 billion
A delayed corn harvest and continued attacks on export infrastructure disrupted logistics during the quarter, slowing the conversion of inventories into cash
On May 3, after the quarter closed, a Russian drone attack damaged the group's largest vegetable oil export terminal in Chornomorsk, spilling around 1,100 metric tons of oil
The financial impact of the attack "cannot be reliably estimated" as of the date the financial statements were authorized, Kernel said
The war represents "a material uncertainty that may cast significant doubt on the Group's ability to continue as a going concern", company management said
Kernel targets grain exports from Ukraine of more than 6 million tons for the full fiscal year, against 5.4 million tons a year ago
