DTEK hard coal mining rises 16% in 7M17

DTEK Energy (DTEKUA) mined 13.4 mmt of hard steam coal
in 7M17, rising 15.7% yoy, Concorde Capital calculated based on sector-wide
data reported by Interfax-Ukraine. In July alone, the holding mined 1.83 mmt of
hard steam coal, which is 1.2% less yoy and 4.8% less compared to June (on a
monthly average basis).

Total coal mining by DTEK Energy (including mines that
DTEK lost in occupied Donbas in March) was 15.3 mmt in 7M17, which is 0.9% less
yoy.

Alexander Paraschiy: The decline
in July coal mining might be attributable to seasonal repair work at DTEK’s key
mines. This does not change our view that DTEK’s total coal mining will drop
15% yoy in 2017 (mostly due to the effect of lost assets). Nor does it change
our positive view on DTEKUA Eurobonds.