Page 73 - UKRRptNov18

burning hard steam coal slid 20% m/m and 30% y/y to 2.10 TWh, production by anthracite-burning units decreased 34% m/m and 66% y.y to 0.22 TWh, while production at gas-fired combined heat and power plants was zero. In January-August, DTEK generated 24.89 TWh of electricity, which is 0.8% less y/y. Its power units burning hard steam coal boosted power generation 5% y/y to 19.77 TWh, while anthracite-burning units reduced generation 25% y/y to 3.02 TWh and gas-fired units decreased generation 2% y/y to 2.10 TWh. "The plunge in DTEK's power generation in August was the result of its high comparison base from last year.”
Ukrainian utility Donbasenergo saw its EBITDA up by a quarter and net revenue up by half in 3Q18. The net revenue of the power company rose 53% y/y to UAH4,573mn ($162mn) in 9M18, according to its October 30 regulatory filing. “The surge in its top line occurred due to a 97% y/y jump in power supply to the wholesale market (to 2.31 TWh), which was partially offset by a 22% y/y plunge in the average electricity price. As a result of less beneficial power pricing this year, the company’s EBITDA slid 35% y/y to UAH735mn in 9M18. At the same time, the company’s bottom line improved to UAH540mn in 9M18 from UAH21mn a year before,” Concorde Capital said in a note. In the third quarter of 2018 alone, the company's net revenue rose 15% y/y to UAH1,773mn (solely due to 15% better pricing of its electricity), EBITDA improved 13% y/y to UAH443mn and net profit climbed 2% y/y to UAH342mn, Concorde reports. “Contrary to our expectations, Donbasenergo managed to improve its EBITDA margin to 25% in the third quarter of 2018, from 10% in the first half of 2018. This is definitely a positive trend driven by factors not yet apparent. (Our understanding is that the company should have incurred higher costs due to the need to import 100% of its coal, as well as higher global coal prices.) So far, we remain skeptical about the future growth of Donbasenergo value,” says Alexander Paraschiy of Concorde Capital.
Since 2015, $1bn has been invested in renewable energy projects,
creating 1,000 MW of electricity generating capacity, reports Serhiy Savchuk, head of the State Energy Efficiency Agency of Ukraine. This year, 429 MW of capacity is under construction. Of the total, 83% will be solar, and 13% will be wind.
Simplifying permitting for wind power and other renewable energy projects is the goal of legislation signed into law by President Poroshenko. The presidential website reports: “The implementation of the document will help to eliminate administrative barriers and increase the transparency of legislation.”
The Kness Group, a large Engineering, Procurement, Construction (EPC)
contractor on the Ukrainian alternative energy market, this year started building own solar power plants and soon intends to launch the capacity of 33 MW, Kness Director General Serhiy Shakalov has said.
Ukraine's leading coal and power holding DTEK generated UAH83.18bn ($3.11bn) in net revenue in January-June , according to the company's presentation of semi-annual non-audited results released on September 28. DTEK's adjusted Ebitda amounted to UAH13.1bn, or 27% more year-on-year. It attributed two-thirds of its Ebitda improvement to higher average prices for its goods (less higher costs), attributing the rest to its higher volumes of goods and services sold. Its bottom line reached UAH5.4bn as of end-June vs. negative UAH1bn a year before.
73 UKRAINE Country Report November 2018 www.intellinews.com