DTEK Energy guides 7.3% yoy increase in hard coal mining

22 января 2018 года
Конкорд Капитал

more than it mined in 2017. In the last year, the holding was able to show a 8.2% yoy growth in hard coal mining to 22.92 mmt, while its total coal mining (including the production from anthracite mines that DTEK has not controlled since March 2017) amounted to 24.82 mmt.

Ukrainian state mines are going to slightly reduce their coal production in 2018, according to DTEK. According to the forecasted energy balance for 2018 prepared by Energy Ministry, coal-fired thermal power plants are going to boost electricity generation 8.2% yoy to 48.8 TWh this year.

Alexander Paraschiy: We see DTEK’s production guidance for 2018 as realistic, and there is even some room for outperforming the plan. But even such growth is not enough to meet domestic coal needs amid an expected drop in coal mining by state companies, which will lead to a higher deficit of steam coal in Ukraine and cause increased needs of imports. The forecasted electricity price assigned for thermal power plants by the regulator in late December assumes Ukrainian power plants will import 4.2 mmt of coal this year, while real import needs could be higher.

So the possible rise in needs to import expensive coal may lead to a further hike in the average achieved prices for electricity to be produced by thermal power plants, which will benefit DTEK. So far, we remain bullish on DTEKUA bonds.

Источник: Конкорд Капитал


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