DTEK decreases coal mining by 34% yoy in Ukraine in 1H15

DTEK decreases coal mining by 34% yoy in Ukraine in 1H15



10 липня 2015 года
Конкорд Капитал

Ukraine’s leading energy holding DTEK (DTEKUA) mined 12.99 mmt of coal in Ukraine in 1H15 (-34% yoy), we estimate, based on preliminary data reported by the Energy Ministry via Interfax-Ukraine on July 9.

Output plunged 80% yoy to 1.71 mmt in 1H15 at DTEK’s mines that produce scarce anthracite coal (grades A and T), while DTEK’s mining of bituminous coal inched up 2% yoy to 11.28 mmt. Importantly, DTEK’s anthracite coal production increased 19% m/m in June to 0.36 mmt, after just a 7% m/m increase in May.

Ukraine’s total coal production reached 19.47 mmt in 1H15, a 52% yoy plunge. With that decrease in Ukraine’s mining, DTEK’s market share increased to 67% in 1H15 from 48% in 1H14. The holding’s share in production of anthracite coal was 99% in 1H15 (vs. 57% in 1H14).

Alexander Paraschiy: Of the provided statistics, the most encouraging news is the imporving trend for anthracite coal. Six of 12 coal-fired Ukrainian power plants located outside the occupied territories (and three of nine owned by DTEK) are designed to burn anthracite coal. These power plants can either ship this coal from the occupied territories of Donbas or import it from other countries. The latter option is much more expensive, given devaluation of the local currency, and leads to inflated costs of power production. The increase in A and T coal output should mean that capacity to deliver such coal from occupied Donbas is improving. This works towards the likelihood that both the Ukrainian energy system will get through the next winter season, and that DTEK’s profitability will improve closer to the year’s end.

Источник: Конкорд Капитал

Аналитик: Александр Паращий
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