DTEK Energy power generation falls 7% in 11M18

Ukraine’s leading coal and power producer DTEK Energy
(DTEKUA) produced 33.78 TWh of electricity in 11M18, Concorde Capital
calculated based on sector-wide data provided by Ukraine’s Energy Ministry.
This is 6.7% less yoy and 1.5% below the ministry’s plan. DTEK’s power units
produced 27.70 TWh of electricity from hard steam coal (up 1.8% yoy) and 3.86
TWh from anthracite coal, which is scarce in Ukraine (-35.3% yoy). Power
generation at DTEK’s heat and power plants (mostly gas-fired) dropped 26.3% yoy
to 2.23 TWh, mainly because Kyivenergo stopped operating its Kyiv-based plants
since August 2018.

In November alone, DTEK Energy’s power plants produced
3.42 TWh of electricity, which is 19.4% more than October, and 5.5% more than
the ministry’s plan.

Aggregate power generation in Ukraine increased 2.2%
yoy to 139.04 TWh, while Ukrainian thermal power plants boosted their
generation 4.2% yoy to 42.82 TWh, mainly due to 39.4% yoy higher output by
state-controlled Centrenergo (CEEN UK) and a 2.6x boost by Donbasenergo (DOEN
UK).

Alexander Paraschiy: Based on improved generation output by DTEK in November, we project
the holding will report its 2018 power generation at 37.0 TWh, which is 2.2%
more than our previous estimate, but 7.0% less yoy. In 2019, we expect DTEK
Energy’s power plants will produce about 37.8 TWh of electricity, which would
be a 2% yoy increase.