According to the report, the assets used for transshipment of vegetable oils in the port of Chornomorsk were purchased to improve the sustainability of the oilseeds processing business.
"One-time storage of sunflower oil in the amount of 105,000 tonnes will allow the group not to stop the operation of processing plants during interruptions in transportation, as was the case in 2022-2023 financial years, and smooth out logistics," the agricultural holding noted.
In the event that the Ukrainian Black Sea ports are blocked, Kernel plans to use assets by rail for storage and transshipment of sunflower oil. Sunflower oil will be accumulated in storage facilities, and then redirected by road to the port on the Danube River. Thus, the agricultural holding intends to "reduce the logistics costs of an alternative export route."
If the Ukrainian Black Sea ports are unblocked, the assets will be used as the main deep-water transshipment base in the Black Sea for sunflower oil, which is exported.
The transaction for the acquisition of assets in the port of Chornomorsk is subject to the antimonopoly supervision of Ukraine.
In addition, Kernel entered into an agreement on the acquisition for $24.75 million of 100% corporate rights in Reni-Oil LLC, a sunflower oil transshipment terminal with a one-time storage of 15,000 tonnes in Reni port.
