DTEK Energy operating profit plunges 85% in 2019, preliminary results show
5 February 2020
Ukraine’s leading coal and power holding DTEK Energy
(DTEKUA) generated UAH 76.83 bln in net revenue in 2019, or 15% less yoy,
according to its preliminary accounts released on Feb. 5. Its operating profit
plunged 85% yoy to UAH 1.77 bln, while net profit declined 47% yoy to UAH 2.55
bln.
DTEK Energy’s cash flow from operations before working
capital changes was UAH 16.28 bln in 2019, which is 38% less yoy. Its net debt
decreased 14% yoy to UAH 44.99 bln.
Alexander Paraschiy: The preliminary results imply DTEK Energy’s adjusted EBITDA for 2019
is UAH 14.5-15.0 bln, which is a very weak result (below our estimate of UAH 15.5-16.0 bln). The holding’s net debt-to-EBITDA ratio is close
to 3.0x, up from 1.8x as of end-1H19. Thus far, we see few drivers for DTEK
Energy to improve its profits in 2020.
