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of DTEK's implemented projects in land wind generation will reach 400 MW. In August, DTEK Renewables, the holding company consolidating DTEK renewable energy assets, has raised €90mn in debt financing for the construction of the first stage of the Primorskaya wind electricity plant with a capacity of 100 MW. The loan for the construction of the first stage of the plant was issued by a consortium of German banks (Bayerische Landesbank, KfW IPEX-Bank, Bremer Kreditbank and others) with risk coverage provided by German export credit agency (ECA) Euler Hermes. The loan term is 10 years after the technical commissioning of the plant.
Ukrhydroenergo, operator of the nation’s major hydro power plants, saw its net profit rise by 22% through September, y/y. Based in Vyshhorod, just north of Kyiv, the state company reported $82mn in profit. The six power plants on the Dnipro and the two on the Dnister have a total total installed capacity of 5,758 MW. For comparison, Ukraine’s total installed solar capacity this year is to hit 1,000 MW.
9.2.10 Metallurgy & mining corporate news
Ukraine’s largest steelmaker Metinvest reported on October 31 an 8% q/q decrease in steel production to 1.803mmt at its subsidiaries in the third quarter of 2018. Azovstal’s output plunged 15% q/q to 0.988 mmt in the third quarter of 2018 due to scheduled overhauls of basic oxygen converters No. 1 (7 days) and No. 2 (21 days). Ilyich Steel’s output inched up 1% q/q in the third quarter of 2018 to 815 kt, according to the holding’s operational update. Metinvest's 9M18 crude steel output rose 3% y/y to 5.597 mmt on a like-to-like basis (for 9M17, Metinvest excluded production at Yenakiyeve Steel, which was halted on February 20, 2017) due to a 6% y/y jump to 2.428 mmt at Ilyich Steel, while production at Azovstal remained flat y/y at 3.169 mmt.
Ukraine’s largest metal producer Metinvest is going to raise salaries for its Ukrainian workers 10% in October following a 20% raise in April, the company said in a statement on September 27. The average salary after the increases will amount to about UAH15,900 ($562) per month, according to Concorde Capital’s analysis of the data in Metinvest’s release. The average salary at Ferrexpo Poltava Mining, the main asset of Ukraine’s largest iron ore pellet exporter Ferrexpo, amounted to UAH13,300 per month during January-August, a 38.9% year-on-year increase, according to local media. Dmytro Khoroshun Kyiv-based brokerage Concorde Capital believes that the 30-40% rise in salaries during 2018 at Metinvest and Ferrexpo’s Ukrainian assets is substantial but below the 50% increase the bank was expecting in its analysis following the strikes at ArcelorMittal Kryviy Rih in May. "As a result of these hikes, we estimate that yearly costs and expenditures on salaries and related social contributions in Ukraine will increase by $115mn (0.9% of estimated 2018 revenue) at Metinvest and by $19mn (1.5% of estimated 2018 revenue) at Ferrexpo, as compared to 2017," he wrote in a note on September 28.
For the second year in a row, Interpipe Steel is on track to increase steel production . Through September, Interpipe increased production by 14%, year over year, to 738,000 tons, the company tells Interfax-Ukraine. Last year production was up 38%.
Pipe production at Ukraine's largest steel pipe producer Interpipe jumped
75 UKRAINE Country Report November 2018 www.intellinews.com