In August 2023, Uzbekistan's largest company, the Navoi Mining and Metallurgical Plant (NGMK), saw a shift in ownership of shares from the state, according to a financial report for the first half of the previous year.
Until March 1, 2023, the Ministry of Economy and Finance (MEF) held shares in NGMK. Later, the state's shareholder function in the plant transitioned to the Agency for Strategic Reforms, with management handed over to the company UzAssets.
The report indicates that in August, 98% of the shares were returned to MEF, while 2% went to the State Assets Management Agency (AUGA). The agency typically receives stakes in state-owned companies before privatization, conducts inventories of assets, determines their initial price, and works to enhance their investment attractiveness.
"Газета.uz" reached out to AUGA for comments on this transfer.
In 2021, Deputy Prime Minister Jamshid Kuchkarov announced that the government had begun preparing NGMK for privatization, with a potential sale of 10% of shares in 2022.
Kuchkarov clarified that the government did not intend to privatize the company entirely. "It is the largest company in Uzbekistan with annual revenue exceeding 5 billion dollars. By 2024, we plan to offer a maximum of 10-15% of shares in an IPO," the Deputy Prime Minister noted.
In March of the previous year, NGMK was included in the list of 40 enterprises for IPO in Uzbekistan. As part of this, around 2% of shares in major enterprises, including Almalyk Mining and Metallurgical Plant, Uzbek Metallurgical Plants, Uztelecom, People's Bank, and others, are planned to be offered to the public.
At the beginning of last year, NGMK projected a decrease in profit to 9 trillion sums (-6.4 trillion) and an increase in expenses to 39.9 (+11.9 trillion sums), but following a government directive, implemented cost-saving measures.
By the end of the first half of 2023, net profit decreased from 841 million to 774 million dollars (profit taxes from 619 million to 547 million dollars). The dividend amount decreased from 454 million to 326 million dollars, as noted by financial analyst Otabek Bakirov.
The value of mining rights and minerals decreased from 4 billion to 3.86 billion dollars.
The company signed credit agreements with local and international banks ranging from 15 months to 5 years for amounts up to 54 million euros and 83 million dollars. Additionally, the company received tranches under previously signed credit agreements. Some bank loans are secured by government guarantees and cash flows from NGMK's gold sales. Ministry of Finance loans are unsecured.
The average loan rate increased from 6.73% to 8.57% (due to debt denominated in dollars and euros).
