DTEK coal output in Ukraine falls 23% in 11M15
14 January 2016
Steam coal production at the Ukrainian mines of leading coal and power producer DTEK (DTEKUA) fell 23% yoy to 24.49 mmt in 11M15, we estimated based on statistics provided by Energobiznes on Jan. 12.
The production of scarce anthracite coal by DTEK, which remains the only Ukrainian miner of this coal, dropped 66% yoy to 4.12 mmt in 11M15.
In November alone, DTEK’s Ukrainian mines produced 2.11 mmt of steam coal, which is 11% more yoy (but 8% less m/m, in average daily terms). November output of anthracite coal decreased 47% yoy and 29% m/m (in average daily terms) to 0.39 mmt. Ukraine’s total production of steam coal decreased 37% yoy to 28.9 mmt in 11M15. DTEK’s share in Ukraine’s total output amounted to 85% in 11M15, up from 69% a year before.
Production of electricity by DTEK’s fossil-fuel power plants located outside the war zone decreased 18% yoy to 35.5 TWh in 11M15. Electricity output at DTEK’s power plants burning anthracite coal fell 60% yoy to 6.0 TWh. Total production of electricity in Ukraine, outside the war zone, deceased 10% yoy to 134.8 TWh.
Alexander Paraschiy: The visible decline in anthracite coal mining by DTEK in November (such coal is only mined in Ukraine in the Donbas war zone) indicates increasing troubles with coal mining in the occupied area. December coal production in the war zone will likely be even weaker, given that the terrorists banned deliveries of coal during the first half of last month.
On the positive side, production of hard steam coal by DTEK’s mines increased 4% yoy, and mining at its flagship Pavlohradvuhillia mine increased 2% yoy in 11M15. This means DTEK’s threats (expressed in spring 2015) that the mine’s production would plunge in 2015 if the government didn’t revise its coal prices proved hollow. Most likely, DTEK’s total 2015 coal production (including its Russian mines) will have declined 23% yoy to 28.5 mmt and its power generation will have declined 19% yoy.
