PJSC "Agrarian Fund" paid 211.5 million hryvnias of dividends to the state during 2016-2018

PJSC “Agrarian Fund” has paid 211.5 million hryvnias of dividends to the state within three years. This information is indicated in the Audit Report on the results of the state financial audit of the activities of PJSC “Agrarian Fund” for the period from 01.01.2016 to 30.06.2018.

In particular, the Company paid dividends to the state in the amount of 116 million hryvnias in 2016, 24.4 million hryvnias - in 2017, and 71.1 million hryvnias - in 2018.

According to the Audit Report, the net profit of PJSC “Agrarian Fund” amounted to 48.7 million hryvnias in 2016, 94.8 million hryvnias - in 2017. The implementation of the financial plan in terms of net profit was 101.4% in 2016, 103.7% - in 2017.

Chairman of the Board of PJSC “Agrarian Fund” Andriy Radchenko, commenting on the audit results, said: “The activities of PJSC “Agrarian Fund” are a proof that a state-owned enterprise can and should be profitable. From year to year, the Company is profitable and is a donor to the state budget of Ukraine".

According to the Audit Report, the Company's assets increased from 6.11 billion hryvnias to 6.99 billion hryvnias during the reporting period.

It should also be noted that there are a number of factors that adversely affect the enterprise's operation. According to the Audit Report, it was found that the state incurred losses in the amount of 18.8 million hryvnias due to improper storage of grain belonging to the "Agrarian Fund". The shortage of 4.2 thousand tons of grain was recorded at the Poltava and Ivano-Frankivsk state-owned bakeries and bakeries owned by the Ministry of Agrarian Policy and Food.

In fact, the shortfall of 4.2 thousand tons does not even amount to 0.1% of the total volume of grain purchased by PJSC “Agrarian Fund” and deposited at the elevators of the contracting enterprises during the specified period. At the same time, losses during storage of grain in the European countries are 5-7%, and in most cases in Ukraine - 10%.

Moreover, PJSC “Agrarian Fund” repeatedly appealed to the management of the Ministry of Agrarian and Agricultural Policy to transfer to the management of eight combines of bread products.  This would allow the Company operating more efficiently and avoid theft.

In particular, the audit found that having a management capacity of its own, PJSC "Agrarian Fund" could save annually about 10% of the total amount spent on storage, loading and processing of grain and its products.

In addition, it should be noted that PJSC “Agrarian Fund” repeatedly appealed to the law enforcement agencies concerning steal of the fund's property at the same SE “Ivano-Frankivsk Combine of Bread Products”. The relevant statements were sent to the Department of Economics of the National Police of Ukraine and the Military Prosecutor's Office of Ukraine.  

 At the request of PJSC “Agrarian Fund”, the Economy Protection Directorate of the National Police of Ukraine conducted a preliminary investigation and handed over the suspicion to the management of LLC “Ukrainian Grain Company “Graincore”, which did not return the grain.

Also, PJSC "Agrarian Fund" has initiated a pre-trial investigation of the failure in grain delivery by "Sim Investtorg".  

It should also be reminded that due to the irresponsible activities of the previous management of the Fund, the Company lost more than 2.4 billion hryvnias (which is almost half of the authorized capital) in the insolvent banks "Brokbusinessbank" and "Radical Bank".

However, given the difficult situation in the country, the war in the East, the annexation of Crimea and the introduction of martial law in some parts of Ukraine's regions, PJSC "Agrarian Fund" has never asked the government to increase its authorized capital. Instead, as in the whole civilized world, the Company has taken a loan from "Ukrgasbank", which is also a government agency.

As a result, PJSC "Agrarian Fund" is one of the most profitable state-owned enterprises and the leader of the agrarian market of Ukraine.

The text of the Audit Report is available on the Company's website under the Information disclosure, Consolidated financial statements and auditor's conclusions.

Press Service of PJSC "Agrarian Fund"