3 August 2016
The thermal power plants of DTEK Energy (DTEKUA) generated 2.92 TWh of electricity in June, which is 20% yoy and 12% m/m higher, Concorde Capital estimated based on statistics provided by Energobiznes on Aug. 2. The growth was driven by a 76% yoy boost in power generation at anthracite-fired power plants and a 9% yoy increase in output by hard-coal-fired plants. The total power output of DTEK Energy increased 17% yoy and 13% m/m to 3.00 TWh in June.
June’s results imply that DTEK Energy generated 18.06 TWh of electricity in 1H16. This is still a 8% decline yoy, but significant improvement from -12% yoy in 5M16.
Total power generation by all sources in Ukraine amounted to 10.79 TWh in June and 73.69 TWh in 1H16 (+1% yoy and -2% yoy, respectively, we estimate).
These statistics consist of only power generation sources located outside the occupied areas of Crimea and Donbas (e.g. they do not include data for DTEK’s Zuyivska thermal power plant).
Alexander Paraschiy: Growth in power generation by thermal power plants in June (including those of DTEK) was an expected event, given that the key generation source in the country, nuclear power plants, significantly decreased their output to 5.46 TWh in June, a drop of 21% yoy and 4% m/m. These nuclear power plants downgraded their output plans for the second half of the year as well, which may allow DTEK to outperform our power generation forecast at -5% yoy for the full year. Thus far, we are not changing this forecast and we confirm our neutral view on DTEK Energy’s Eurobonds.