Kernel announced its financial plans for 2009/2010: sales USD 1,05 bln +0,28% yoy, EBITDA USD 185 mln down 1,8%, net income USD 130 mln up 1,2%. The company plans to export 1,6-1,8 mln tons of grain vs. 2,2 mln in 2008/2009 the company’s record. On Friday the company also announced that it had succeeded to prolong USD 225 mln debt agreement.
We view the news as positive for the company. The flat sales growth for the next year we connect with hryvna depreciation expectations. The debt prolongation was actual for the company, which has USD 148,5 mln of short term debt on the end of June 2009, what is 64% of total debt USD 233 mln.