News

Trans-Oil Group (Aragvi Holding International Ltd.), the largest agro-industrial holding in Moldova, has released today its audited consolidated IFRS financial statements for the year ended 30 June 2019. The entire document can be accessed at http://transoilcorp.com/images/transoil/reports/r30.06.19.pdf.

2019FY Financial highlights:

  • Consolidated revenues for 2019FY recorded USD 552 million, an increase of 21% y-o-y from USD 458 million for 2018FY, the strong performance was supported by bumper crop in Moldova, improved financing program and strong international marketing program. Total sales almost reached 2 million MT (increase of 25% y-o-y) with a substantial increase in sunflower seeds, wheat and other key crops (barley, soybeans and rapeseeds).
  • EBITDA for 2019FY amounted to USD 73.6 million, rising by 22% y-o-y from USD 60.3 million for 2018FY, on the back of record revenues and strong operating performance
  • Strong EBITDA margin of 13.3% for 2019FY compared 13.2% for 2018FY, as the Group continued to benefit from its market leading positions, strong pricing power and high operating efficiency
  • Cash from operations for 2019FY (before changes in working capital) amounted to USD 73.5 million,  an increase of 22% y-o-y from USD 60.1 million for 2018FY
  • Net income for 2019FY was USD 34.6 million, an increase of 30% y-o-y from USD 26.1 million for 2018FY

The Group’s financial position as of 30 June 2019:

  • The Group’s adjusted net debt as of 30 June 2019 stood at USD 161 million. An increase of 30% compared to 30 June 2018 was primarily driven by Romanian plant acquisition loan, extended drawdowns under the trade finance lines and larger RMI balances we had as of 30 June 2019.
  • The Group’s total debt outstanding (excluding shareholder loan) stood at USD 379 million as of 30 June 2019. During 2019FY the Group has improved its capital structure via the issuance of USD 300 million 5-year Eurobond issue, which now comprise the largest part of the debt portfolio in addition to PXF line utilized to finance through-the-cycle RMI needs
  • Our RMIs as of 30 June 2019 were USD 189 million, an increase of 71% compared to 30 June 2018 driven by larger sales volume and purchases to finance the growing trading and crushing volumes for 2020FY on the back of available permanent working capital and extended drawdowns under the trade finance lines.
  • Adjusted Net Debt / EBITDA stood at 2.2x compared to 2.1x
  • Fixed charges coverage ratio stood at 2.1x compared to 2.4x
  • The slight deterioration in Adjusted Net Debt / EBITDA and Fixed charges coverage ratios are considered to be temporary and non-systemic. The company is still committed to its path of deleveraging going forward.

Commenting on 2019FY financial results, the Group CEO Vaja Jhashi said:

“We achieved record-high performance for 2019FY. This contributed to all-time high revenues and EBITDA of USD 552 million and USD 74 million for FY 2019, an increase of over 20% compared to the results in previous financial year. We retain strong EBITDA margin of 13% on the back of our unique strategic asset base in Moldova and our wide international reach throughout Europe and MENA regions. The financial profile of the Group has substantially strengthened with a an debut issue of 5-year USD 300 million Eurobonds and lately with the renewed USD 150 million PXF line, syndicated by a number of DFIs and international financial institutions.

While the Group is performing well and we are also very optimistic about the future, and plan to sell at least 2 million metric tons of grains & oilseeds and crush some 450k metric of sunflower seeds at Floarea Soarelui (Moldova), Trans Oil Refinery (Moldova) and Romanian  crushing plant, which was acquired in 2019.”

TRANS OIL Group is pleased to announce the signing of the Revolving Pre-Export Finance facility in the amount of up to $150 million. The proceeds will be used to purchase agricultural commodities crop of 2019 from local (Moldovan) farmers and other suppliers. The facility was committed by an international banking syndication comprised of DFIs and commercial banks. The syndication includes ING Belgium, European Bank for Reconstruction and Development, UniCredit Bank Austria AG, Black Sea Trade and Development Bank, Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V., Mobiasbanca – OTP GROUP S.A., OTP Bank Plc, FIMBank p.l.c., and Banque Cantonale Vaudoise.

In the height of summer, Trans-Oil Group of Companies just started producing a new astonishing off-season product at its fat-and-oil complex FLOAREA SOARELUI SA — FLORIS OLIVIO, which is the blend of sunflower and olive oils in the convenient bottle type of 0.5 liters.

According to the company's technologists, it is the top-quality product. The vegetable oils mix includes the basic product of the company Floarea Soarelui — refined and deodorized sunflower oil FLORIS (produced by the enterprise for almost two recent decades, and which technologies of production were brought to perfection), with added olive oil. The company imports olive oil from Greece — the EU country, which agricultural sector is associated with the great Mediterranean triad for millenniums: olive oil, cereals and grape wine.

The blend of FLORIS OLIVIO includes sunflower oil and olive oil in the ratio of 4:1. On the one hand, the reporting ratio provides the Moldavian consumer with the traditional set of vitamins (in particular, group E) contained in sunflower oil, and on the other hand, it enriches the product with the useful and delectable Mediterranean flavour.

In addition to the more balanced composition and higher nutritional content, the cost of the reporting sunflower-olive oils mix is cheaper than 100% olive oil. But it justifiably claims to the status of the premium product.

Moreover, the consumer will be able to enjoy the benefits of the product universality — FLORIS OLIVIO can be used without any losses of consumer characteristics, both in the process of product high-temperature treatment — cooking and frying, and for dressing of raw vegetable salads.

As a reminder, last summer the company Floarea Soarelui also offered the issue-related new product to its Moldavian consumers — crude sunflower oil FLORIS RUSTIC. In addition, the product is available in the ergonomic "garden-picnic" bottle of 0.5 liters, and it is marketed as the premium product, which has already become a success with the high-skilled chefs of Moldova. At the same time, FLORIS RUSTIC is the flavoured and bright "subject matter professional": oil for salad dressing, but not frying.

Therefore, in the current year the Mediterranean sunflower and olive oils mix FLORIS OLIVIO will join the Floris product line (in convenient consumer-oriented packaging — 0.5 l) of Floarea Soarelui.

In addition to FLORIS OLIVIO and RUSTIC FLORIS, on the Moldavian market the Floris product line also includes the well-known, classic, refined and deodorized sunflower oil FLORIS. In the nearest future, a number of new products of Floarea Soarelui SA will appear on the supermarket shelves — spicy and extremely appropriate for highly seasoned dishes on a hot August day, sunflower oil with spices. It is the bright oil for all intents and purposes — FLORIS CHILLI — with hot red chili pepper and allspice black peppercorn, as well as oil with garlic — FLORIS MUJDEI.

For several recent years, Floarea Soarelui realized a series of large-scale projects on the production modernization — reconstruction of workshops was aimed at improving of the products quality, and focused on the growth of its sales not only in bulk, but also in rather convenient packaging. Therefore, the Moldavian consumers significantly increased attention to packaged sunflower oil of the company. Also, the Chamber of Commerce and Industry of the Republic of Moldova awarded the company for achievements in the sphere of quality-2010. In the short term, modernization of the quality infrastructure of Floarea Soarelui created the required conditions for the company to start realizing the program of increasing of sales of packaged sunflower oil on the high-margin western markets — in the European Union, and the large-scale Eastern markets — to the Middle East and China. At the same time, the Floris product range certainly have rather good export potential, said the General Director of Floarea Soarelui SA, Stella Ostrovetchi.

Also, it should be noted that the highest quality of the consumer-oriented products of Floarea Soarelui is confirmed by the certificate of the most reliable international safety and quality management system ISO 22000, which the company already approved after the recent inspection at the enterprise in the current year.

Trans-Oil Group is pleased to announce that Oaktree Capital Management (OCM) has acquired a minority interest in Aragvi Holding International Ltd (the parent company of Trans-Oil Group), thus becoming a shareholder of Trans-Oil Group. Oaktree Capital Management is a leading American global asset management firm specializing in alternative investment (including private equity) with over 120 Billion USD of assets under management.

The new shareholder is expected to significantly increase the Group’s business outreach internationally, as well as to bring the highest standards of corporate governance and effective structures that will strengthen the performance of an important regional agribusiness player. 

This is the first corporate investment done by a major US global asset management firm in the Republicof Moldova, which comes after another pioneered success of 300 million USD Eurobond issue in April 2019

We would like to inform that temporary political crisis in Moldova has been resolved. Transfer of power has taken place. All state institutions are functioning in a normal mode without any disruption.

The US State Department welcomed the decision of the Democratic Party (PDM) to abandon state management in favor of the government of Maia Sandu and the new parliamentary majority elected democratically, according to a press release from the US government.

 “We are inspired by the fact that, like the new coalition, the former government conducted a peaceful transfer of power, which reflects the will of the people.”

The current political stand-off doesn’t have, neither will have any impact on Groups’ operations. All Groups’ assets, including the port terminal work without any disruption.

New crop purchasing process particular to this period undergoes normally.  All relevant state authorities work according to their schedule.

The currency stays stable and local commercial banks are working without any interruptions

In light of the recent political events in the Republic of Moldova, and certain misstatements which might appear in mass-media, Trans-Oil Group of Companies reiterates that its sole and only shareholder is Mr. Vaja Jhashi. Trans-Oil Group of Companies never had in the past and currently has no affiliation and/or businesses with any past or current political party or individual, neither directly or indirectly. The non-affiliation has been continuously confirmed via various due diligences conducted by international financial institutions. We are confident and optimistic that political parties will find democratic consensus very soon, serving the best interests of the people of the Republic of Moldova.

Trans-Oil Group is proud to announce and welcome Daniel Ruiz as the Group’s Head of Global Funding and Business Development Solutions. Daniel will oversee key financial, development and expansion projects.

During his almost 20-year career working for major banking institutions such as Societe Generale and BNP Paribas, Daniel has delivered consistent top and bottom line growth ahead of its markets. Its focus on successfully pioneering a new model of sustainable growth has served the needs of its many stakeholders and created excellent results for the Banks.

Tandarei crushing plant, located in Ialomita, Romania, with a processing capacity of 650 metric tons (MT) of sunflower seeds per day, was recently acquired by Global Grain International, a Romanian subsidiary of Trans-Oil Group. Since closing of the deal in March 2019, Global Grain International hired over 30 people for de-hulling and extraction departments. In May 2019, a new boiler house with an output of 4 MT of steam per hour was commissioned. In addition, by mid-June, a new meal granulator with a total capacity of 15 MT of meal per hour will be commissioned. Within the month of June, Global Grain International will be also EU certified both ISO 9001:22001 and ISCC.

 

After almost 2 years of leasing of Tandarei plant to Global Grain International, EFA Dynamic Trade Finance (EFA), a subsidiary of EFA Group, which is a Singapore based independent asset manager, has finally sold the plant to Global Grain International. This acquisition was financed by International Investment Bank (IIB) under a 7-year investment facility of EUR 10 million. IIB has also provided a long-term working capital facility of EUR 10 million. The operations in Romania will be consolidated into Trans-Oil Group consolidated financial statements for the financial year ending June 30, 2019. Full operational consolidation and earnings contribution to the Group will start from the new season, with the inception of crushing season by the end of August

Bloomberg - Olga Voitova

 

Since the deal was a debut both from the issuer and from Moldova, there was an element of price discovery required. “There hasn’t been much corporate supply from the region apart from similar Russian and Georgian single B-rated peers in the region, so that was a useful guide,” said Gladkov.

 

Investors from  Europe bought 33%  of issued bonds ,  Switzerland 29%, Great Britain  19 %, USA 18 % and other countries 1%    

TransOil scores with second attempt to open up Moldovan market

By Lewis McLellan 

2 April 2019

 TransOil, a Moldovan agricultural exporter, on Monday launched the first ever international bond from the country, completing the deal

successfully.

Citi, Renaissance Capital and UBS were bookrunners for the $300m five year benchmark, while VTB Capital joined the syndicate as joint lead

manager. The leads offered price guidance of 12% area, before printing the deal in the line with that at 12%.

The trade was “comfortably oversubscribed”, according to Andrey Solovyev, global head of DCM at VTB Capital. However, the final book size has not yet been released.

Dmitry Gladkov, acting head of investment banking at Renaissance Capital, said: “The book was well covered by indications of interest when we finished the road show [on Friday, March 29].”

Since the deal was a debut both from the issuer and from Moldova, there was an element of price discovery required. “There hasn’t been much corporate supply from the region apart from similar Russian and Georgian single B-rated peers in the region, so that was a useful guide,” said Gladkov.

TransOil attempted to make its bond market debut in February 2018, but was unsuccessful because of market conditions. “The market went completely quiet when the issuer tried to come to the market last February,” said Gladkov. “The concerns around the US interest rate peaked then and wiped out upcoming issuances in the dollar space. “However, the company used its time well and came back with a stronger offering to the market. We had the 144A tranche as well as the Reg S, and a new rating from Fitch, as well as managing to secure an anchor investment from the Black Sea Trade and Development Bank, which helped to validate the transaction.”

Upon successful completion of road-show, Trans-Oil Group (Aragvi Holding International Ltd) is pleased to announce that

on 1 April 2019 it successfully priced debut for the Group and for the country senior secured Eurobond

issue of US$300 million at par. The issue’s settlement date is on 9 April 2019 with a maturity of 9 April 2024.

The offering received strong international interest with European and US investors. The bonds are expected

to be officially listed on the Irish Stock Exchange on or around 9 April 2019.

Citibank Global Markets, Renaissance Securities and UBS AG acted as joint lead managers and

bookrunners for the US$ Rule 144A/Reg. S issue.

The bonds are rated B by Fitch and B- by S&P.

The TRANS OIL Group and the international banking consortium signed in Geneva  on March 26, 2019 an agreement on Pre-crop financing in the amount of $35 million to finance  the needs of agriculture, which will allow to expand the volume of financing of farms and economic agents and, as a result, increase the acreage to 65,000 hectares. from the 2018 harvest in the Republic of Moldova from producers and economic agents.

The international banking consortium included Société Générale S.A., Company Overview of Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V.(FMO), IIG Bank (Malta) Ltd

Arab Bank (Switzerland) Ltd., FIMBank p.l.c.

Press release 

Trans-Oil Group of Companies is set to expand its sales to the MENA region (the countries of the Middle East and North Africa).

The International Conference of the Middle East Grains & Oil Congress will take place at the Egyptian capital, Cairo on March 11-12th 2019. It is organized by APK-Inform (Ukraine), an information and analytical agency. Trans-Oil Group of Companies is the general sponsor of the forum.

Vaja Jhashi: This event was not chosen randomly. Egypt is the largest importer of grains, ranking 1st in the world in wheat imports (12.5 million tons) and 5th place in imports of corn (9.7 million tons). Thus, Egypt is one of the main target markets for agricultural products from Russia and Ukraine, as well as our group of companies from Moldova. The MENA market is not new to us, but every year we strive to expand our presence there.

Vaja Jhashi will make the opening speech to more than 200 conference participants from 22 countries. The conference will assess the global and regional markets of grain, oil-seeds and byproducts, as well as prospects for development in the nearest future.

Special attention will be paid to the legal aspects of trade in Egypt, as a key player in the MENA market. Moldova will be represented by Thierry Beaupied, head of Trans-Oil Group’s trade department, who will discuss Moldova as promising supplier of grains to the Egyptian market. Tamaz Jhashi is Commercial Director of the Trans-Oil Group and will discuss the growing potential of Moldovan sunflower seed and byproducts on the global market. The general director of "Floarea Soarelui" SA, Stela Ostrovetchi will speak about the growth in worldwide consumption of sunflower oil due to its favorable qualities, as well as the development of new products such as high-oleic and organic sunflower oil.

The following speakers will participate at the event: the General Secretary of the International Sunflower Oil Association (ISOA), a representative of the Egyptian State Foodstuffs Procurement Agency GASC, international experts in the establishment of prices and logistics, businessmen from Egypt, Libya, Jordan, China will also represent their markets.

Press Service of the Trans-Oil Group

On 14th of October, Trans-Oil Group of Companies was a charity sponsor in the Day of Chisinau holiday. Trans-Oil is committed to the future and with this in mind, the companies participation in the event was focused especially on making the holiday an enjoyable day for the youngest citizens of Chisinau.

 

Moldova will be able to set a new record for sunflower yield this year: the yield is expected to be 2.6 t / ha this year, compared to 2.4 t / ha last year. The yield of sunflower grew gradually the last 4 years. Despite slight decline in crops in 2018 (from 384 thousand / ha to about 362 thousand / ha), the yield of sunflower seeds will be increased from 950 thousand to 1 million tons, compared to 920 thousand tons in 2017. According to experts, 400 thousand hectares of sowing is considered to be the limit, after the crop rotation will be disturbed which leads to soil depletion. Moldova is the leader in the share of areas planted with sunflower seeds nowadays, the total amount of arable land is more than 24% in Moldova, compared with neighboring countries - Ukraine (more than 17%) and Romania (10.1%). The management of Trans Oil Group believes that the positive dynamics in Moldova in recent years have been achieved through the use of more efficient seeds, the active introduction of modern methods of tillage, the correct selection of plant protection products and the government’s efforts to combat underhanded activity.

The event is organized by Information agency "Agroindustrial complex-Inform" in partnership with the International Finance Corporation (IFC), a member of the World Bank Group. The general sponsor of the forum is the Trans-Oil GroupAs the organizers informed, the forum will discuss the current trends and prospects for the development of the Black Sea oilseed market; market of sunflower oil in the countries of the Danube region and its influence on the development of the world market of this product; development of infrastructure and logistics of the Dnieper-Danube-Black Sea basin. It is noted that the forum will focus on the oilseeds segment of the agricultural market, as the countries of the Danube River Basin play an important role in the formation of the supply of oilseeds. In particular, they provide up to 8% of the world production of oilseeds and annually demonstrate a positive dynamics of gross harvest of oilseeds. The forum is expected to involve producers and processors of grain and oilseeds, international trading companies, surveyors, ports, cargo owners, charterers, brokers, inspection and logistics companies, banks, state companies, engineering companies, industry associations, representatives of government organizations and international structures. The conference will be held in two languages: English and Russian.

 

The TRANS OIL Group and the international banking consortium signed in Paris on July 11, 2018 an agreement on a syndicated loan in the amount of $240 million to purchase agricultural products from the 2018 harvest in the Republic of Moldova from producers and economic agents.

The international banking consortium, which was headed by Societte Generale Paris , also included ING Bank Belgium, UniCredit Bank Austria AG , Black Sea Trade and Development Bank , FIMBank p . l . c , Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden NV, Arab Bank Ltd., Banque Cantonale Vaudoise.

In the upcoming season the TRANS OIL Group plans to purchase more than 500,000 tons of sunflower seeds and more than 1.2 million tons of grain (wheat, barley, rapeseed, corn, peas) and over 100,000 tons of soybeans.

As previously reported, the TRANS OIL Group increased the trans-shipment capacity at Giurgiulesti International Free Port and brought it to 1,600.000 metric tons of agricultural products per year.

The largest sunflower oil factory Floarea Soarelui SA in Balti has launched a new oil extraction production facility that allows processing more than 300 thousand tons sunflower seeds per year and in addition the oil and fat plant in Ceadir Lunga - Trans Oil Refinery with a production capacity of more than 135 thousand tons sunflower seeds per year.

Vaja Jhashi, President of TRANS OIL: "Due to cooperation with international financial institutions, TRANS OIL is the largest producer of sunflower oil in Moldova and an exporter of cereals, oilseeds, and legumes, it can guarantee agricultural producers timely payments for their products and the most favorable prices. Our task is not only to provide convenient export opportunities for Moldovan producers, but also to pay in time for their products at the best prices. A reliable buyer, which is the TRANS OIL group, is a timely calculation that allows to work normally and plan development for future years."

The group of companies Trans Oil is the largest buyer and exporter of cereals and oilseeds in Moldova. The group includes 16 elevators all over the country, capable of storing more than 750 thousand tons simultaneously; 2 oil-extraction factories in Balti and Ceadir-Lunga with a production capacity of 1200 tons per day and 400 tons of sunflower a day, respectively; 2 grain terminals and a terminal for sunflower oil in the International Free Port of Giurgiulesti; as well as a number of agricultural, transport, infrastructure enterprises, including in Ukraine, own a fleet of modern railcars, as well as a modern fleet of trucks for freight traffic.

The described investments above have been allocated to two projects at the Floarea Soarelui factory in the city of Balti, and a unique project at Giurgiulesti International Free Port.

Vaja Jhashi, the President of the TRANS OIL group: As the largest producer of sunflower oil in Moldova and a major grain exporter, we understand our responsibilities. The quality of Moldova’s oil and cereal products depends on all participants in the production chain: agricultural producers, transport units, storage facilities,. Not only do our customers buy products from TRANS OIL companies, they importantly acquire goods produced in Moldova. Therefore, it is very important for us to invest in the most modern, ecological and advanced technologies to support the development of best practices for production and commodity handling in the country. This year, we have completed three new projects and have invested more than $13 million in total over three years to accomplish them.  We continue to constantly explore new ideas for modernization of our production facilities.

Modern equipment and a new Oil Extraction Division

 Floarea Soarelui is the largest oil and fats factory in Moldova.  The factory has significantly increased its production capacity as a result of the installation of a new, modern oil extraction division. Construction of the division has been fully completed in May 2018. The production capacity of the new workshop supports overall processing capacity of up to 1200 tons of sunflower seeds per day or more than 300 thousand tons per year.

 The old workshop, built in the 1960s, could support processing of only 800 tons of sunflower seeds per day or up to 200,000 tons per year. The new equipment was supplied and installed by "EuropaCrown" Ltd Company. - One of the world’s leading equipment providers.

 The general contractor Ukrainian company JSC "Production Company Techmash" has extensive experience in the implementation of such strategic facilities in Ukraine. In particular, they built the largest in Eastern Europe steel factory InterpipeStyle at Dnieper as well as factories for the company, BUNGE, in Ukraine.

 Stella Ostrovetskaya is the General Director of JSC Floarea Soarelui: "Today, the increasing of production is extremely important. It is equally important to apply the most modern and advanced technologies in our factory. This can be achieved only through the introduction of processes, such as the new oil extraction division, that reduces cost and minimize production losses. Additionally, the new processes help to maintain and even improve our production quality and quantity indicators. This project will inevitably lead to an increase of the competitiveness of our end products and will allow us to maintain our leading position on the domestic market and also expand our export opportunities.

  Having invested $9.5 million in the construction and equipment of the new oil extraction workshop, Floarea Soarelui not only increased its production capacity by more than a third, but also received the most modern workshop in the region, equipped with the latest technologies.

 Boiler house on biofuel

 Also in 2018, Floarea Soarelui factory has successfully launched a new boiler house that allows for switching to an autonomous and environmentally friendly fuel. The production of oil requires steam treatment. This boiler house produces 25 tons of steam per hour with a pressure of 3.9 Pa and a temperature of 410 degrees Celsius. The boiler house works completely on husks, which are produced as a byproduct of sunflower seed crushing.

Investments in the construction and equipment of the new boiler house amounted to $2.5 million. The project was implemented partially with participation of MOSEF and the European Bank for Reconstruction and Development.

 Currently, related to this project, there is ongoing work on the installation of a new turbine which can operate on the produced steam. The turbine will cover 60% of the factories total demand for electricity.  This will optimize the cost of procuring electricity from external suppliers and will lead to overall reduction of production costs.

 The unique pneumatic equipment for cereals and oilseeds

 TRANS OIL group of companies third project in 2018, which will be completed by the beginning of the new season, is unique not only for Moldova, but also for the entire Black Sea region.

 Currently, TRANS OIL enjoys capacity in the International Free Port of Giurgiulesti to store of 70,000 tons of grain. Out of 70,000 tons, 50,000 tons are located at the banks of the Prut river and 20,000 tons at the banks of the Danube.

 The new pneumatic grain feeding line 515 meters long with a capacity of 250 tons per hour will unite both of the terminals of the TRANS OIL group at the Giurgiulesti port.

 The loading of cereals and oil crops on the ships is provided by two terminals located at the Prut river and the Danube river. Loading capacities of the terminal at the Prut river allow loading of 200-300 tons of grain per hour, and the terminal at the Danube river up to 800 tons per hour.

 Project financing (worth $1.2 Million) was covered by TRANS OIL group’s internal funds. The equipment was supplied by "Stal'prom" (Dnepropetrovsk, Ukraine) who were  responsible for the laying of the pipeline. "Technology pneumatic-Export" company (Taganrog, Russia) delivered up-to-date pneumatic technology used at the international ports.

As a result of this project, the TRANS OIL group terminals in Giurgiulesti port will be able to transfer more than 1 600,000 metric tons per year.

 Mihail Redkin, managing director of Trans Cargo Terminal: "With the launch of the new pneumatic line, we can simultaneously load ships to both the Prut and the Danube rivers from any of our storage facilities. This makes our work more flexible, faster and increases the overall output of our port capacity.

 Vaja Jhashi, the President of the TRANS OIL group: "I will not deny that we took a certain risk with the new pneumatic line. No one in the region has implemented such projects yet. Therefore, the project has received a lot of attention from both partners and competitors in the region. This success influences not only the quality and efficiency of our work, but also the reputation of Moldova in general and the TRANS OIL group in particular. I think our team coped well with the target and pressure. We also plan to increase storage capacity at the Danube’s terminal up to 30,000 metric tons in the new season and total storage capacity will be 80, 000 metric tons."

Overseas Private Investment Corporation (OPIC), a self-sustaining U.S. Government agency, extended a loan facility for TRANSOIL GROUP of COMPANIES in the amount  of 9 750 000 USD.  This financial investment will be directed towards modernizing the sunflower oil crushing facility and increasing the storage capacity in the Giurgulesti Free-zone port.

This is stated in the new, April review of the IMF "World Economic Outlook". According to the IMF forecasts, in 2018 the inflation rate in Moldova will be 4.7%, and in 2019 - 5.1%. It is expected that in 2023 Moldova's GDP growth will be 3.9%, and inflation - 5.1%. It should be noted that following the results of the IMF's assessment mission’s work in our country from March 15 - March 27, it was stated that the fund increased the forecast for Moldova’s GDP growth in 2018 to 3.8%. It is obvious that the updated macroeconomic forecast will be contained in the next IMF review. The head of the IMF mission, Ben Kelmanson, during a joint press conference with Moldovan Prime Minister Pavel Filip noted that the Moldovan authorities have made progress in strengthening economic policies and eliminating vulnerabilities in the banking and financial sector. The efforts they have made have contributed to maintaining the financial stability and strengthening the basis for achieving medium-term goals. Ben Kelmanson noted that in 2017 there was a steady growth rate, which was supported by a strong domestic demand and a favorable external environment. "We expect these trends to continue in 2018. We forecast stable economic growth at 3.8%," the IMF mission head said. As InfoMarket agency reported earlier, the Moldovan government forecasts that the country's GDP growth in 2018 will be 3%, but notes the availability of the potential for achieving higher growth of the country's economy this year. In the next 2 years, the Cabinet expects the economic growth at 4%. This forecast of the macroeconomic indicators was taken into account by the Ministry of Finance when drafting the Law on the State Budget for 2018. It is planned that in nominal terms the GDP of Moldova in 2018 will be 160.1 billion lei, in 2019 - 174.5 billion lei, and 2020 - 190.2 billion lei. The Moldovan government forecasts an average annual inflation of 4.3-4.9% for the next 3 years. It is forecasted that in 2018 the average annual inflation rate will be 4.3%, in 2019 - 4.8%, in 2020 - 4.9%. It is expected that inflation at the end of 2018 will be 3.5%, and at the end of 2019 and 2020 - 5% each. The GDP of Moldova increased in 2017 by 4.5%, making in monetary terms 150 billion 369 million lei; inflation was 7.3%.

"Floarea Soarelui" SA is the largest producer of sunflower oil in Moldova; the management of the company summed up the results of participation in the exhibition "Made in Moldova", which was held at MoldExpo in Chisinau from January 31st to February 4th, 2018.

Traditionally, the visitors of the exhibition not only get acquainted with new products of Moldovan producers, but also have the opportunity to purchase different products without extra charges.

Brand Manager of "Floarea Soarelui" SA, Roman Rudenko said:
 "4.500 bottles of "FLORIS" sunflower oil were sold from the well-designed stand during the five days of the exhibition, thanks to the successfully accommodated place in the central pavilion of the exhibition. Our stand was visited by more than 1500 people, including businessmen interested in large export deliveries. "

This year, "Floarea Soarelui" SA has represented two new products, "FLORIS-Rustic" and "FLORIS-Chili" sunflower oils (unrefined raw sunflower oil and sunflower oil with chilli), which are not yet sold in retail and they’re being used to study possible demands of customers.

Roman Rudenko: "Unfortunately, unrefined raw sunflower oil has a very limited shelf life - only four months. Therefore, large retail chains are showing little interest in it. However, unrefined raw sunflower oil attracts small-wholesale buyers, who have a faster turnover. As for the sunflower oil with chili, a small experimental batch was made particularly for the exhibition, and it was sold on the first day. Our company will make a decision to launch the production of the new sunflower oil with chili in industrial volumes, considering the results of the exhibition, we believe this oil will have its buyers. We are pleased with the results of participation in the "Made in Moldova" exhibition and we consider a successful promotion of our products at the domestic market. "

"Floarea Soarelui" SA is the largest producer of sunflower oil in Moldova, selling it in bulk and packed in bottles of 1 liter, 3 liters and 5 liters. The company is the part of the "TRANS OIL Group", headed by entrepreneur Vaja Jhashi. Besides "Floarea Soarelui" SA, "TRANS OIL Group" has a factory for the production of sunflower oil in Ceadir-Lunga city (Trans Oil Refinary), 13 grain storages located throughout the country, more than 100 grain and oilseeds reception stations, as well as two terminals, and the terminal for export of sunflower oil at the International Free Port of Giurgiulesti.

 

The group of companies TRANS OIL summarized the preliminary results of their activities in July-December 2017. The group begins the financial and economic year on July 1st and ends on June 30th of the following year.

The meeting of the heads of all subdivisions of the TRANS OIL Group of Companies was made and it was noted that for two consecutive years, the yield of cereals was quite high in Moldova. This also had a positive impact on the performance of the Group's divisions.

 In particular, all 15 elevators belonging to the TRANS OIL Group, which are located throughout Moldova, were loaded with grain crops by 100%  within July-December 2017.

 In the season of 2017, the online platform (www.transoilmarket.com) for agricultural producers was launched in July for the first time, where any farmer could leave an application for the sale of cereals according to the prices announced by the Group of Companies TRANS OIL. There were purchased directly, without intermediaries more than 150.000 tons of cereals via this platform in 2017. Thus, farmers could get more money for their products, and the Group of companies could attract more farmers, even low-budget, which were forced to take their products to wholesale dealers previously.

There is always a certain shortage of freight transport during the peak season. To solve this problem, the online platform for freight carriers was launched for the first time. This allowed to stabilize prices and involve small enterprises, as well as individual entrepreneurs from transport services.

 The main flow of the grain crops was exported through the grain terminals of TRANS OIL Group, located at the International Free Port of Giurgiulesti. 485.000 tons were handled within July-December 2017. The production capacities of grain terminals in Giurgiulesti Port are more than 1.2 million tons per year. According to the preliminary data, the total amount of wheat collected in Moldova was 1.16 million tonnes.

 "Floarea Soarelui" which is the part of the Group of Companies, made special strides during the last period of activities. The company successfully rebranded its leading brand of sunflower oil  FLORIS, making it more up-to-date product, attracting the attention of customers. The food production company has passed the certification according to the ISO 22000 standard (the world standard for food safety) for the first time in Moldova. The factory plans to launch completely new and modern oil extraction production facility at the beginning of 2018.

 It was noted the role of "Floarea Soarelui" in terms of trading at international markets, the company won the tender of the Ministry of Trade of Iraq and signed a contract for the supply of sunflower oil to this country by $25 million per year. Intensive work of this company led to the fact that "Floarea Soarelui" became one of the top-10 largest enterprises in Moldova, in 2016.

 The TRANS OIL Group of Companies organized the Agro-logistic forum "Dnieper-Danube-Black Sea" in the capital of Moldova for the first time, in the fall of 2017. Speaking at the forum, the president of the Group Vaja Jhashi said: "We want Moldova to appear at the global map of the market for grains and oilseeds as a country that plays an important role in the Black Sea region. The world’s and regional markets of grain and oil crops, talk about Ukraine, Russia, Romania ... and few people talk about Moldova. I would like our country to be recognized as a significant player in this market. And I do not mean just our Group of Companies, I’m talking about all market participants. I want all our business owners to work, promoting the common interests of the country as producers and exporters."

 It is assumed that Moldova will become a place to hold this international forum regularly. This will promote the brands of the country as serious players in the grain export market and producers of high-quality sunflower oil.

 At the meeting with the heads of the TRANS OIL Group, President Vaja Jhashi summed up preliminary results of the first (for the Group) half-year period (July-December 2017): "Many years of experience show that Moldova, as a country of risky farming, periodically faces climatic difficulties, alternating a fruitful year with a bad harvest year. However, the harvest in the country was quite high for several years in a row, due to the introduction of modern technologies in agriculture. Our Group of Companies enables farmers to sell their products profitably and provides long-term storage of high-quality, it has established a complete logistics of grain exports from Moldova, providing the country with foreign exchange and tax revenues. The task for the second half of the year is to ensure preparations for the new season, which, according to preliminary reports, will be no worse than the harvest of 2017. It is very important to continue direct contacts with agricultural producers, even the smallest ones, so that they have the opportunity to sell their products directly, without intermediaries, therefore, they will be well-paid for the harvested crops."

Vaja Jhashi, the president of the TRANS OIL group of companies: "We settled $6 million of investments and opened a new grain terminal on the Danube River at the end of 2016 with the financial support of the European Bank for Reconstruction and Development. Thus, grain export opportunities were increased from 500.000 tons per year to  over 1.3 million tons per year. We continue to develop the infrastructure during this year, 2018th and invest additional 1 million euros in the construction of a new pneumatic grain supply line that will unite the Trans Cargo terminals on the Prut River with the Trans Cargo terminals on the Danube River."

 Currently, TRANS OIL capacities at the International Free Port of Giurgiulesti provide storage of 70.000 tons of grain, of which 50.000 are located on the Prut coast and 20.000 on the Danube.

 The loading of grain crops is provided by two terminals located on the Prut and the Danube. The loading capacities of the terminal on the Prut River allow to load 200-300 tons of grain per hour, and the terminal on the Danube River can accept 800 tons per hour.

 The new pneumatic grain feeding line will unite all the grain capacities of the TRANS OIL group in Giurgiulesti port. 

 Mihail Redkin, CEO of Trans Cargo Terminal:  "We will be able to ship to both the Prut and the Danube rivers simultaneously from any of our storage facilities, built both on the bank of the Prut and on the banks of the Danube, after launching the new pneumatic line. This will make the operation of our grain terminals quick and more flexible, it will also increase the overall loading capacities of our port by increasing the efficiency of its use. More than 485 thousand tons of grain, legumes and oilseeds were transported over the first half of this year (01.07.17 - 31.12.17)."

 The cost of the project for the construction of the new pneumatic line is 1 million euros; financing is carried out both at the expense of the own funds of the TRANS OIL group, and the resources  attracted from international financial institutions. The equipment is supplied by the company "Stalprom" (Dnepropetrovsk, the Ukraine), which is responsible for laying the pipeline; and the company "Technology of pneumatic equipment-export" (Taganrog, the Russian Federation), supplying modern pneumatic technologies used for international ports.

 The first part of the new pneumatic line will be launched in March 2018, it will allow loading of grain from the tanks on the Prut to the loading terminal on the Danube. The project will be completed by mid-summer at the beginning of agricultural harvesting. Then, it will be possible to load ships with grains at the terminals of Prut and the Danube simultaneously, regardless of location of the storage facilities in the port.

 TRANS OIL the group of companies, whose president is the well-known businessman Vaja Jhashi, is the largest buyer and exporter of cereals in Moldova. The Group has 15 elevators all over the country and it is capable of storing more than 710 thousand tons of grain; it also has two oil extraction plants in Balti and Ceadir-Lunga with the production capacity of 1200 tons per day and 400 tons of sunflower seeds per day, respectively; two grain terminals and a terminal for sunflower oil at the international free port of Giurgiulesti, as well as agricultural, transport and infrastructure enterprises, some of them are in the Ukraine.

The first part of the new pneumatic line will be launched in March 2018, it will allow loading of grain from the tanks on the Prut to the loading terminal on the Danube. The project will be completed by mid-summer at the beginning of agricultural harvesting. Then, it will be possible to load ships with grains at the terminals of Prut and the Danube simultaneously, regardless of location of the storage facilities in the port.

 TRANS OIL the group of companies, whose president is the well-known businessman Vaja Jhashi, is the largest buyer and exporter of cereals in Moldova. The Group has 15 elevators all over the country and it is capable of storing more than 710 thousand tons of grain; it also has two oil extraction plants in Balti and Ceadir-Lunga with the production capacity of 1200 tons per day and 400 tons of sunflower seeds per day, respectively; two grain terminals and a terminal for sunflower oil at the international free port of Giurgiulesti, as well as agricultural, transport and infrastructure enterprises, some of them are in the Ukraine.

The length of the new pneumatic line will be 515 meters; its productivity is more than 200 tons per hour.

According to the updated data of the Ministry of Agriculture, Regional Development and Environmental Protection, the yield of winter barley increased by 12%, corn by 34%, soybean by 27%, sunflower by 11%. Aggregate harvest of fruits increased by 3.2%, pome fruits - by 3.4%, stone fruits - by 3%. The harvest of berry bushes and strawberries grew by 15%, vegetables and potatoes - by 22%. As noted in the department, also in 2017, the export volumes of a number of plant products increased. In total, about 200 thousand tons of fruits were exported, of which 157 thousand tons - in the CIS, and 16 thousand tons - in the EU. For the first time, were exceeded quotas for export of plums in preferential mode and for the first time sweet cherries were delivered to the EU. The department also records the expansion (+ 5%) of the areas of farmland cultivated in accordance with the principles of resource-saving agriculture. It is also noted that the largest area of land sown with the first group of crops and rape fell to the northern part of the country - 35-40%. Further follow: the center of the country - 12-15%, the south - 8-10%, and Gagauzia - 5-7%.

ISOA is the international non-profit organization, aimed at promoting of international trading with sunflower oil. The organization plans realizing both scientific and trading levels of sunflower oil promotion.

 List of ISOA establishing organizations: 

- CCOA; 

- Wilmar; 

- Ukroliyaprom; 

- APK-Inform; 

- Argentinian Sunflower Association – ASAGIR; 

- Russian Union of Vegetable Oils Producers and International Sunflower Association.

 The launch ceremony of the International Sunflower Oil Association was presented during International Sunflower Oil Symposiumin October 2015 in China. The first Board of Directors was announced during the ceremony.

 The Association is a non-profit association and its purposes are the following:

 - Promote to establish the international scientific standard of sunflower oil and value added products of sunflower seed.

- Promote and foster uniformity of commerce and trade among countries in the fields of sunflower oil.

- Encourage and promote improved communications between and among sunflower oil producers, industry groups, academic researchers and local governments.

- Enhance sunflower oil additional value and enlarge commercial application fields.

- Sponsor training programs to assist members in their technical work and development to improve sunflower oil production.

 

It is located at the north of Moldova in the city of Balti. The "Floarea Soarelui" factory is a part of Trans Oil group; it is the largest producer of high-quality sunflower oil in the country. The factory successfully passed certification audit at the end of 2017 and implemented food safety management system in accordance with ISO 22000 standard.

 This international standard is based on HACCP system (Hazard Analysis and Critical Control Points), which provides systematic identification, assessment and management of all factors affecting food products safety. The HACCP standards were developed by the "Codex Alimentarius" committee which summarizes international standards of food production, adopted by the FAO/WHO international committee.

 The company "Floarea Soarelui" obtained ISO 22000 certification, it is known as a reliable producer, where each stage of sunflower oil production is controlled. In particular:

               - All raw materials are reviewed by strict selections on the basis of the results of organoleptic, physicochemical and microbiological studies;

              - The technological process is carried out using up-to-date equipment;

              - Each stage of production identifies the most important points of the technological processes which are constantly monitored by specialists of the relevant services of the enterprise;

              - The raw materials are sent to the packaging if only successfully passed all laboratory tests and quality requirements;

              - The factory strictly accomplishes storage conditions of market-ready products.

 The availability of the international quality standard ISO 22000: 2005 certification gives the following advantages: "Management systems in the field of safe food products are the necessary requirements for any producer in the supply chain", it guarantees high quality products and allows "Floarea Soarelui" factory to strengthen consumers’ confidence, expand sales markets, significantly improve competitiveness at the domestic and international markets; it also proves the reputation of the company as a producer of high quality and safe food products.

 Another important factor of ISO 22000: 2005 certification is increased attractiveness of investments. This step is a positive signal to local and international partners and investors that the company is developing confidently and expanding the geography of consumption of sunflower oil from "Floarea Soarelui" not only in Europe and the Middle East where this product has been successfully sold for many years but also in new markets, those still have to experience and get to like sunflower oil from the Moldovan factory "Floarea Soarelui", the part of Trans Oil group.

FLOAREA SOARELUI SA obtained ISO 22000 certification. It is known as a reliable producer, where each stage of sunflower oil production is controlled. In particular:

- All raw materials are reviewed by strict selections on the basis of the results of organoleptic, physicochemical and microbiological studies;

- The technological process is carried out using up-to-date equipment;

- Each stage of production identifies the most important points of the technological processes which are constantly monitored by specialists of the relevant services of the enterprise;

- The raw materials are sent to the packaging if only successfully passed all laboratory tests and quality requirements;

- The factory strictly accomplishes storage conditions of market-ready products.

The availability of the international quality standard ISO 22000: 2005 certification gives the following advantages: "Management systems in the field of safe food products are the necessary requirements for any producer in the supply chain", it guarantees high quality products and allows FLOAREA SOARELUI SA to built confidence, expand sales markets, significantly improve competitiveness at the domestic and international markets; it also proves the reputation of the company as a producer of high quality and safe food products.

Another important factor of ISO 22000: 2005 certification is increased attractiveness of investments. This step is a positive signal to local and international partners and investors that the company is developing confidently and expanding the geography of consumption of sunflower oil, not only in Europe and the Middle East, where this product has been successfully sold for many years but also in new markets, those still have to experience and get to like sunflower oil from the Moldovian FLOAREA SOARELUI SA, the part of Trans Oil Group of Companies.

The decrease in the indicator was due to the reduction in acreage from 371 thousand hectares in 2016 to 301 thousand hectares in 2017, as the average wheat yield has increased over the period from 3.1 tons to 3.87 tons per hectare. Such information was presented to the InfoMarket agency by the State Secretary of the Ministry of Agriculture, Regional Development and Environment Iurie Ususrelu. Harvest of barley in 2017 amounted to 248.2 thousand tons, down 2.9%, compared to 2016 (255.7 thousand tons). At the same time, the area under this crop decreased from 83.2 thousand to 73.3 thousand hectares, and the average yield increased from 3 tons to 3.4 tons per hectare. The yield of corn decreased by 9.6% over the year from 1 million 392 thousand tons in 2016 to 1 million 259 thousand tons. At the same time, its average yield increased from 2.99 tons to 4.5 tons per ha. The area decreased from 466 thousand to 282 thousand hectares. However, as noted in the Ministry of Agriculture, the data on maize yield in 2017 is not final, they will be further specified. The pea harvest increased 1.9 times from 26.6 thousand tons in 2016 to 51 thousand tons in 2017. The area under this crop increased from 9.3 thousand to 19 thousand hectares, the average yield was 2.67 tons per 1 ha against 2.84 tons per 1 ha a year earlier. The yield of soybeans increased by 36.3% over 1 year from 42.1 thousand tons to 57.4 thousand tons. The area under this crop decreased from 40 thousand to 36.4 thousand hectares, and the yield increased from 1.17 thousand to 1.6 thousand tons per hectare. The sunflower harvest increased by 12.3% over 1 year from 677 thousand tons in 2016 to 760 thousand tons in 2017. The areas occupied by sunflower increased from 361 thousand to 365 thousand hectares, and the average yield increased from 1.87 tons to 2.1 tons per ha. The gross production of rapeseed increased 1.7 times - from 43.2 thousand tons in 2016 to 74.2 thousand tons in 2017. The growth was due to the increase in the area under rapeseed from 18.2 thousand to 29.7 thousand hectares, while its average yield remained at the same level - 2.5 tons per hectare. According to the Ministry of Agriculture, in 2016, from 0.6 thousand hectares occupied by tobacco, 0.9 thousand tons of dry tobacco leaf was received. At the same time, in 2017, from an area of 0.46 thousand hectares, 3.89 thousand tons of green leaf tobacco was obtained. Data on dry tobacco leaf is not yet available. According to the Ministry of Agriculture, the gross production of sugar beet this year amounted to 681.5 thousand tons, increasing by 2.5%, compared to the previous year (665 thousand tons). The area under sugar beet increased from 20.4 thousand to 21.2 thousand hectares, and the average crop yield decreased from 32.6 tons to 32.1 tons per ha.