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the figure is 72.4 tonnes, which is 3% more compared to August and a new record high), according to the company's statement published on October 11. In January-September, DTEK produced 17.71mn tonnes of hard steam coal, or 4.6% more y/y on a like-to-like basis. Its biggest mining asset, Pavlohrad Coal, produced 14.83mn tonnes of coal in January-August, or 1.1% more y/y. In 2018, DTEK will produce 24.3mn tonnes of coal (a 6% increase y/y on a like-to-like basis), according to the statement. Alexander Paraschiy at Kyiv-based brokerage Concorde Capital believes that to reach its announced annual production target, DTEK should be producing 71.6 tonnes of coal daily in the remaining months. "This looks realistic based on its September result. That said, we see DTEK’s 2018 coal mining at 24.1mn-24.3mn tonnes, which is above our previous estimate of 23.4mn-23.6mn tonnes, but below DTEK’s initial plan of 24.6mn tonnes," the expert wrote in a note on October 12. "Such a level should be enough for the holding to fully cover its needs in hard steam coal for the nearest heating season."
9.2.11 Other sector corporate news
Ukraine’s leading aviation engineering firm Motor Sich generated UAH7.91bn ($280mn) net revenue in 9M18, or 13% less y/y , according to its October 30 regulatory filing, Concorde Capital said in a note. The company’s EBITDA dropped 60% y/y to UAH1.54bn and net profit plunged 79% y/y to UAH0.54bn. At the same time, its work-in-progress and prepayments received increased to record-high levels as of end-September to UAH10.77bn (up 8% y/y) and UAH4.12bn (up 36% y/y), respectively. The company’s 9M results imply that in the third quarter of 2018 alone, its revenue decreased 8% y/y (to UAH2.10bn) and EBITDA fell 67% y/y (to UAH0.29bn), while its quarterly bottom line turned negative (at UAH-0.36bn) for the first time in many years, Concorde adds. “Increased prepayments received and work-in-progress suggest Motor Sich is working on a large order, implying its revenue will surge once this order is executed. We expect this to happen in the fourth quarter of 2018, which will be much stronger for the company than all the previous quarters of this year,” Alexander Paraschiy of Concorde Capital said in a note. “The same pattern was demonstrated by the company in 2017, when in 4Q it generated doubled revenue and tripled EBITDA than in the first three quarters, on average. Based on higher amounts prepaid and work-in-progress as of end-September 2018, Motor Sich’s the fourth quarter of 2018 performance could be even stronger than in the fourth quarter of 2017. That said, we warn that Motor Sich shares are blocked for trading on the Ukrainian exchanges.”
77 UKRAINE Country Report November 2018 www.intellinews.com