DTEK's 2014 EBITDA slid 27% to US$1.3bn, debt restructuring underway

DTEK's 2014 EBITDA slid 27% to US$1.3bn, debt restructuring underway



16 березня 2015 года
ICU

In its 2014 financial and operational results report released last Friday, DTEK announced that its revenues declined 33% to US$7.8bn and EBITDA fell 27% to US$1.3bn, mostly due to the impact of the hryvnia devaluation and lower sales volumes caused by the military conflict in Donbass. DTEK's production of coal dropped 10% to 37.1mt while thermal power generation output declined 11% to 47.1TWh. The company reduced its exports of electricity by 19% to 8TWh and coal by 14% to 4.1mt. During the conference call, management stated that while there were signs of a recovery of production, logistics remains the key issue in the conflict territory. At the same time, DTEK stated it extended the maturity of 50% of its debt due in 2015 and aims to increase this ratio to 90% by 1H15-end. Management also stated it was going to announce its plans on restructuring its 2015 Eurobonds in the nearest future.

Investment implications: As DTEK's assets operating in territories not controlled by Ukraine accounted for 10% of the company's revenues in 2014, its financial performance remains significant dependent on further developments of the crisis in Donbass. Because the recovery of logistics in the Donbass region is dependent on the political will of the conflicting parties, DTEK's operational and financial outlook remains highly unpredictable in 2015. The hryvnia's steep devaluation, shrinking exports, and the rising need to cover disrupted supplies of in-house coal with imports should further undermine DTEK's ability to meet its debt obligations. However, we expect that the company should meet its target of rescheduling its debt due in 2015.

Источник: ICU

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