DTEK power generation rises 33% qoq in 3Q16

Ukraine’s
leading coal and power holding DTEK Energy (DTEKUA) produced 11.00 TWh of
electricity in 3Q16, Concorde Capital calculated based on sector-wide data
provided by Energobiznes on Nov. 1. This is 33% more than in
2Q16 and 23% more
compared to 3Q15. DTEK’s anthracite-burning power plants produced 3.01 TWh of
electricity in 3Q16, which is a 109% increase yoy.

In 9M16, DTEK
produced 29.07 TWh of electricity, which is +0.8% yoy. In September, DTEK’s
generation was 3.25 TWh, which is 24% more yoy and 8% less compared to August.

All the above
data does not include DTEK’s Zuyivska power plant, which operates in the
occupied territory of Ukraine and is not selling its electricity to Ukraine’s
wholesale market. Its contribution to DTEK Energy’s total power
generation is about 8% – 9%.

Alexander Paraschiy: The 3Q16 performance of DTEK’s power plants is slightly better than
our expectation of +30% qoq growth and implies that the holding may generate as
much electricity this year as in 2015 (initially, we expected a 5% yoy
decline). We confirm our expectations that DTEK Energy will be able to generate
at least USD 475 mln in EBITDA this year, as well as reiterate our updated view
that DTEK’s Eurobonds might have
some price growth potential,
provided the newly announced bond restructuring parameters are approved.