DTEK Energy coal mining falls 1.7% in 5M19
20 June 2019
Ukraine’s leading coal and power producer DTEK Energy
(DTEKUA) produced 9.45 mmt of raw coal in 5M19, or 1.7% less yoy, according to
Concorde Capital calculations based on sector-wide data provided by
Interfax-Ukraine. Total production of steam coal in Ukraine decreased 4.5% yoy
to 10.70 mmt in 5M19, with DTEK’s share rising to 88% from 86% a year before.
In May alone, DTEK Energy produced 1.86 mmt of coal,
which is 0.5% more yoy and 0.2% less compared to April, on a daily average
basis.
Alexander Paraschiy: Most likely, DTEK Energy’s coal output will be slightly weaker yoy in
the remainder of the year, or in line with a planned reduction in power
generation by all Ukrainian thermal power plants (about 2.5% yoy). Our updated
forecast is DTEK Energy will cut its coal mining by 2.0% yoy in 2019 to 23.6
mmt. We remain bullish on DTEKUA Eurobonds, which have solid prospects for
appreciating, provided the company resolves its outstanding debt later this
year. That will trigger its credit rating upgrade.
