DTEK Energy reports on September operations without Russian assets

Ukraine’s leading coal and utility holding DTEK Energy (DTEKUA) reported it mined 2.66 mmt of coal in September, a 4% decline m/m. Its mining of hard steam coal increased 7% m/m to 1.93 mmt, while mining of anthracite coal fell 24% m/m to 0.73 mmt. The amount of its coal sold fell 6% m/m to 2.04 mmt in September. The holding reported 70 kt of coal exports (-9% m/m) and also reported on 137 mmt of coal imports in September for the first time this year.

Its generation companies sold 2.94 TWh of electricity to the wholesale electricity market (-7% m/m) and enjoyed an 11% m/m advance in average achieved electricity price to UAH 1260 / MWh.

Alexander Paraschiy: As usual, DTEK’s operating update lags to information provided earlier by other public sources, so there is little surprise in the report. The only important change from previous reports is that DTEK Energy has stopped including its Russian mines in the report, which is why its anthracite mining declined in September. Recall, DTEK reported on Sept. 22 that it had spun off its Russian Obukhovskaya mine. The spinoff also aimed in order to reduce its total debt by USD 436 mln. All in all, we are keeping our bullish view on DTEKUA bonds.