ASK Ukrrichflot PAT : A Project with Interpipe Company: Summarizing September Results

The annual general shareholders meeting of JSSC 'UKRRICHFLOT' was held on April 28, 2015. The agenda contained 10 issues related to corporate governance and core operations of the company.

Despite the fact that the year 2014 was tough not only for business, but also for the whole Ukraine, 'UKRRICHFLOT' has continued the path towards strengthening its positions on the market of transport services. For the first time in several years, the company has ended the year with no losses. It is reasonable to believe that the positive trend will persist this year.

Dmitry Moskalenko, the CEO of JSSC 'UKRRICHFLOT', has reported on the Company's activities and main achievements in 2014, and areas of development, set by management for 2015.

«Despite all the hurdles, the company has managed to achieve considerable success in 2014» - Dmitry Moskalenko emphasized.

The year 2014 was an extremely difficult period for Ukrainian society and business, our country as a whole, as evidenced by the following macroeconomic indicators:

• inflation rate - over 26%;

• GDP decline, and slump in industrial output by 28%;

• decline of exports and imports by 23% and 27%, respectively;

• introduction to foreign exchange constraints and growing tax pressure on business;

• unstable political situation and extremely unfavorable investment climate in the country;

• and others.

Unfortunately, the year 2015 maintains this negative trend.

However, despite all the hurdles, the Company managed to achieve considerable success in its operations in 2014. Overall we have increased the sales of goods and services, as well as efficiency in use of available resources and reduction in administrative costs.

For the first time in recent years, given the other income and expenses of the Company, net income of JSSC 'Ukrrichflot' was positive.

In 2014 the fleet of the Company transported c. 1.8 million tons of cargoes, posting a 31% increase in comparison with 2013.

About 2.5 million tons of cargoes were processed by the ports of JSSC 'Ukrrichflot', with a 56% year-on-year increase.

The share of steel products rose up to 61% in the portfolio of cargoes, while the volumes of grain transshipment remained significant, with a 27% share.

At the same time volumes of sand trading have decreased by 28%, to 824 thousand tons, primarily due to decline in construction industry of Ukraine.

The company continues to provide socially-oriented services, such as a ferry service in Nikopol. In 2014 about 40 thousand passengers and 19 thousand tons of cargoes were transported via our ferry line.

The Company persists with development of a new business line - trade in agricultural products, primarily on the basis of Dnipropetrovsk grain elevator. In 2014 54 thousand tons of crops were sold and given favourable market conditions subsequent sales volume increase is planned.

In 2015, JSSC 'Ukrrichflot' plans to further enhance the operation profitability by increasing the volume of transport and stevedoring operations.

Development of coastal shipping on the Dnipro River remains the key strategic corporate goal. This year the mix of cargoes for inland shipping is planned to be mainly composed of steel products, grain and construction aggregates. Simultaneously, the Company is actively developing the new promising business line - transportation of goods in containers between the ports of Odessa region and Dnipropetrovsk river port.

Moreover, in response to customer requests and new market challenges, the Company changes its approach to integrated logistics service, including simultaneous support, handling and transportation of cargo.

In general, the Company continues to constantly improve its methods of corporate governance in accordance with international standards, to deepen international cooperation with leading European and global leaders in the industry. This allows us to be a modern Company that can flexibly respond to the challenges of the market, and stay worthy of holding the title of 'national carrier'.

Upon voting the shareholders have approved the annual report of the Executive body of the Company.