Donbasenergo to buy 1.5 mmt of coal for USD 117/t

Donbasenergo (DOEN UK) signed a UAH 1.68 bln contract to purchase 1.5 mmt of coal in 2012, Interfax reported yesterday. The implied net price of coal is USD 117/t.

Coal supply contracts for 2012

Buyer                  UAH bln*  mmt USD/t,net      Supplier

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Donbasenergo      1.7               1.5             117 TD Energougol

Donbasenergo      0.5               0.4             120  Coal Ukraine

Dniproenergo       11.6             8.8             138  DTEK-Trading

Zakhidenergo       7.4               5.6             138  DTEK-Trading

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* Value of the contract including VAT

Source: Interfax

Alexander Paraschiy: The news looks encouraging for Donbasenergo as its coal price this year will be the lowest of all GenCos that have announced details of their supply contracts. The deal will allow the company to slightly average down its coal purchase price: earlier Donbasenergo signed a contract with state operator Coal Ukraine to buy 0.4 mmt of coal in 2012 at USD 120/t.