coal and power holding DTEK Energy (DTEKUA) produced 12.89 TWh of electricity in 4M17,
rising 3.8% yoy, Concorde Capital calculated based on sector-wide data provided by
Energobiznes. The key growth drivers were DTEK’s thermal power plants (TPPs) burning hard
steam coal, whose output increased 11.6% yoy to 8.49 TWh. At the same time, power
generation at its anthracite-burning TPPs dropped 14.2% yoy to 2.75 TWh, mostly due to
lack of fuel in the last couple of months.
In April 2017,
DTEK Energy produced 2.60 TWh of electricity, flat yoy and m/m. Generation at its
anthracite-burning TPPs fell 49% m/m and 58% yoy to 0.27 TWh. Hard-coal-fired TPPs
boosted generation 28% m/m and 20% yoy to 2.10 TWh in April.
heat and power plants produced 1.65 TWh of electricity in 4M17 (2.6% yoy growth) and 0.27
TWh in April (8% yoy growth).
Paraschiy: Declining power
output by anthracite-burning plants in April was expected, and it continues in May, when
two of three plants of that type were idle.
among anthracite-fired TPPs was more than compensated by the hefty price of electricity
of all of DTEK’s TPPs. In particular, the average price of electricity sold to the
wholesale market by DTEK’s TPPs was UAH 1,610/MWh in April, we calculate, which is 36%
more yoy. In 4M17, the average rate of DTEK TPP’s electricity was UAH 1,500/MWh, or 49%
more yoy. That rate is also much higher than DTEK Energy is expecting for all of 2017
(UAH 1,300/MWh). This allows us to remain bullish on DTEKUA Eurobonds.
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