29 September 2011
DTEK, a Ukrainian energy holding, increased its 1H11 net profit by 70.9% y-o-y to USD 276.7 mln, the company reported yesterday. Revenues increased by 73.7% y-o-y to USD 2,306 mln, and EBITDA grew by 91.7% y-o-y to USD 629 mln. Revenue growth was attributed to increases in electricity output and prices, as well as coal production and export operations. Revenue from its coal production segment more than doubled y-o-y to USD 1,317 mln, electricity sales increased by 87.2% y-o-y to USD 654 mln and revenue from power generation increased by 31.9% to USD 616 mln. According to management during a conference call yesterday, growth of coal revenues were equally attributed to rising price (in 1H11, the average coal price was USD 100 per mt, +33% y-o-y) and output increased due to the consolidation of the Dobropolyeugol coal mine (which DTEK leased on January 4, 2011 for 49 years). DTEK plans to spend USD 371 mln in CapEx in 2011 and USD 486 mln in 2012. Net Debt to EBITDA in 1H11 was 0.4x. Antonina Davydenko: DTEK’s profitability growth was triggered by a boost in revenue and a 2.6 pp improvement in its EBITDA margin to 27.5%. The holding’s strong cash position ensures timely debt servicing and allows for participation in upcoming GenCo privatizations without attracting external funding.