DTEK Energy coal mining drops 3% m/m in August
6 September 2017
Ukraine’s leading coal and power holding DTEK Energy
(DTEKUA) mined 1.77 mmt of coal in August, or 2.2% less yoy, Concorde Capital
calculated based on provisional sector-wide data provided by Interfax-Ukraine.
This a 3.1% decline compared to the previous month and the third declining
month in a row.
In 8M17, DTEK Energy mined 17.1 mmt of coal, which is
4.9% less yoy, mainly due to the loss of three anthracite mines in occupied
Donbas in March. DTEK’s hard steam coal mining climbed 13.2% yoy to 15.2 mmt in
8M17.
Alexander Paraschiy: While we
still expect some recovery in DTEK’s coal mining in autumn as compared to
summer levels, it looks like the holding will produce less coal in 2017 than
our initial expectation of 24.9 mmt. Therefore, we are downgrading our forecast
for DTEK’s total coal output in 2017 to 24.4-24.5 mmt, or a 16% yoy drop.
more hard coal to secure enough stockpiles to get through the heating season.
However, as hard steam is easily available for DTEK globally, we do not expect
additional imports will spoil the group’s financial result. We still expect
DTEK Energy to generate over UAH 14 bln in EBITDA in 2017, and we maintain our
bullish view on its Eurobond.
