DTEK power generation falls 6% m/m in August
13 October 2016
Ukraine’s leading coal and utility holding DTEK Energy (DTEKUA) generated 25.66 TWh of electricity in 8M16, a 0.9% yoy decline, Concorde Capital calculated based on sector-wide information published by Energobiznes. The anthracite-burning thermal power plants (TPPs) of DTEK boosted generation 88% yoy to 6.68 TWh, while hard-coal burning TPPs reduced their production 17% yoy to 16.95 TWh in 8M16.
In August alone, DTEK Energy produced 3.67 TWh of electricity, which is +23% yoy, but 6% less compared to July. Average monthly electricity production by DTEK in July and August was 3.80 TWh, which is 38% more than the average for 2Q16.
The above statistics don’t account for the results of DTEK’s Zuyivska TPP, located in the occupied territory of the Donetsk region.
Alexander Paraschiy: All Ukraine’s TPPs reduced their power supply in September by 12% m/m. Based on this, we estimate output at all of DTEK’s power plants declined 11% m/m in September, which implies DTEK Energy boosted its power generation by 31%-32% qoq in 3Q16.
Based on the recent results, we see DTEK’s power generation division will perform slightly better in 2016 than our expectation of a 5% yoy decline in electricity output. Thus far, we do not see enough reasons to change our 2016 DTEK EBITDA forecast of USD 475 mln, as well as our neutral view on DTEKUA Eurobonds.
