DTEK reports further declines in production in 1H15

DTEK reports further declines in production in 1H15



31 серпня 2015 года
ICU

In its 1H15 production results released last Friday, DTEK announced that the company's coal mining declined 32% YoY to 14mt, electricity generation fell 22% YoY to 18.9TWh, and electricity transmission volumes dropped 17% YoY to 23.1TWh. Moreover, exports of electricity declined 62% YoY to 1.7TWh and coal exports were down 72% YoY to 0.8mt.

Investment implications: The military conflict in Donbass continues to have a severe impact on DTEKs production results. The output of the company's anthracite mines located in separatist-controlled territories and thermal power plants that depend on anthracite suffered the most, mainly as a result of railway destruction and shipments hindered by combat. However, there is evidence that coal shipments through the conflict frontline are being worked out. As the largest damage to the Donbass infrastructure occurred in August-September 2014, we expect DTEK to keep showing significant negative production growth in 3Q15, with a modest recovery anticipated soon thereafter.

Источник: ICU

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