DTEK Energy increases hard coal mining 8.2% in 2017
10 January 2018
Ukraine’s leading coal and power holding DTEK Energy (DTEKUA)
produced 22.91 mmt of hard steam coal in 2017, Concorde Capital calculated
based on sector-wise data published by Interfax-Ukraine on Jan. 9. This implies
8.2% growth yoy and slightly less than DTEK’s guidance of 23.0 mmt.
In December alone, DTEK mined 64.9 kt of hard coal per day, which is 2.1% more
yoy but 7.0% less compared to November.
Total coal mining by DTEK in Ukraine amounted to 24.82
mmt in 2017 (15.0% less yoy), including results from anthracite mines located
on the occupied territory of Donbas that the holding has not controlled since
mid-March 2017.
Alexander Paraschiy: While December’s decline in DTEK’s coal output is discouraging, the
holding’s annual result is broadly in line with our estimate. We therefore
confirm our estimate of DTEK’s 2017 EBITDA of UAH 17.7 – 18.0 bln, as well as
re-iterate our bullish view on DTEKUA bonds. In the year 2018, we expect DTEK
will further increase the mining of hard steam coal, with a growth rate of at
least 8% yoy.
