DTEK Energy coal mining reaches record high in August

Ukraine’s leading coal and power holding DTEK Energy
(DTEKUA) produced 2.18 mmt of hard coal in August 2018 (or 70.3 kt per day),
Concorde Capital calculated based on sector-wide data presented by the Energy
Ministry. This is a monthly record for the holding, 12.5% more m/m, 23.2% more
yoy, but 0.2% less than plan. In 8M18, the holding’s coal mining reached 15.54
mmt, which is 2.5% more yoy, but 3.3% below plan.

Alexander Paraschiy: The good news is that DTEK’s monthly coal output nearly reached the
planned level in August, after an 11% underperformance a month ago. This confirms our view that DTEK will
underperform its 24.6 mmt production plan for 2018 by about 1.0-1.2 mmt,
meaning it won’t be self-sufficient in hard steam coal this year. We stick to
our neutral view on DTEKUA Eurobonds.