Thermal GenCos raise electricity production 12% yoy in 8M08

According to the National Energy Company of Ukraine (NC ECU), four state-controlled thermal generation companies produced 36.8 TWh of electricity in 8M08 (+12.1% yoy) and increased their share in total Ukrainian output to 28.2% (+1.3 pp). Total power production in Ukraine grew 6.9% yoy, according to preliminary results.

GenCos electricity production in 8M08

Company                        Output, TWh    Chg, yoy
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Centrenergo (CEEN: BUY)          10.64       20.2%
Dniproenergo (DNEN: BUY)        11.43       16.3%
Donbasenergo (DOEN: BUY)        4.78       10.9%
Zakhidenergo (ZAEN: BUY)          9.99        1.1%
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Source: NC ECU

Alexander Paraschiy: The key reason for the increase in the share of thermal power generation in total Ukrainian production was the inability of nuclear power plants to support growth in demand, highlighted by equipment failure at the first unit of the Khmelnitsk NPP this June. This pulled down nuclear power production by 3% yoy in 8M08. We forecast the four traded thermal generation companies will increase electricity production by 11.5% yoy in 2008.