DTEK Energy plans to increase coal mining 4% in 2022

Ukraine’s leading coal and power producer DTEK Energy
(DTEKUA) plans to produce 17.5 mmt of ROM coal in 2022, according to its Feb. 8
press release citing CEO. This is about a 3.9% increase compared to 2021 (16.84 mmt, based on Concorde Capital calculations).
DTEK Energy imported 0.32 mmt of coal and mined over 1.5 mmt of ROM coal in
January (1.1% less yoy and 9.1% less m/m,
based on Concorde Capital calculations), according to the company’s release.
According to DTEK Energy, its power plants burned 14.5 mmt of coal in 2021, of
which 84% was its own coal.

Alexander Paraschiy: The company’s plan is in line with our expectation of its slight coal
mining increase. DTEK’s self-sufficiency in its own coal might slightly worsen
with such plans in 2022, but still will remain solid. We maintain our bullish
view on DTEKUA bonds and anticipate the company to report strong 2021 and 1Q22
financial results.