DTEK coal mining rises 4% in 4M17

Ukraine’s leading coal and utility holding DTEK Energy (DTEKUA) mined 1.91 mmt of coal in April, marking a 20% yoy and 6% m/m drop (on average daily basis), Concorde Capital calculated based on sector-wide mining data reported by Interfax-Ukraine on May 5. DTEK mined no anthracite coal in April as it de jure lost control over all its anthracite mines in mid-March. Its mining of hard steam coal increased 15% yoy in April, but was 5% lower m/m.

In 4M17, DTEK Energy mined 9.69 mmt of coal (4% yoy growth), including 1.91 mmt of anthracite coal at the mines it no longer controls and 7.78 mmt of hard steam coal (+0.86 mmt yoy, 12% yoy growth). DTEK’s share in total coal mining of steam coal in Ukraine rose to 90% in 4M17 from 89% a year before.

Alexander Paraschiy: We expected DTEK’s mining of hard steam coal to rise by 1.7 mmt this year (8% yoy growth). While so far the holding is performing slightly better, we are sticking to this forecast. We also remain bullish on DTEK Energy’s Eurobond.