DTEK Energy boosts coal mining 15% m/m in November
Ukraine’s leading coal and power holding DTEK Energy (DTEKUA) boosted its mining of hard steam coal 8.8% yoy to 20.9 mmt in 11M17, Interfax-Ukraine reported on Dec. 6, citing the holding’s press release. In November alone, the holding mined 2.1 mmt of coal, which is 5.2% more yoy. In daily average terms, the holding mined about 69.5 kt of coal in November, or 15% more than in October, according to Concorde Capital calculations. DTEK also reported it invested into development of its mines UAH 3.2 bln in 10M17, or by a third more yoy.
Recall in March 2017, DTEK had lost control over its anthracite mines located on the occupied territory of Donbas (producing 8.0 mmt of anthracite coal in 2016), now controlling three mining companies that exclusively produce hard steam coal.
Alexander Paraschiy: DTEK’s focus on rising coal production seems to have paid off, which is definitely encouraging for the holding. It will also play as a good political argument for beneficial coal pricing in Ukraine (at a premium to the global markets), which had been established by the regulator since mid-2016. With November data at hand, we see it’s more likely that DTEK Energy will reach its ambitious target to mine 23.0 mmt of hard coal in 2017 (or higher than our previous estimate of 22.6 mmt).