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main growth was provided by supplies to thermal power plants of DTEK Energo was 17%. In October 2021, Ukrainian thermal power plants received 1.36 million tons of Ukrainian-mined coal and 235 thousand tons of imported coal.
PJSC Centrenergo has paid off all debts to state mines for the supply of coal. “There is no debt to mining companies for the supply of coal," announced the company. Such actions in the company were explained by the understanding of "the urgent need to increase domestic coal production to ensure the security of the state."
Centrenergo posts UAH436mn profit in 3Q21. State-controlled power generation company Centrenergo (CEEN UK) reported a UAH436mn net profit in 3Q21, according to its October 25 announcement. With this profit, the company was able to decrease its year-to-date loss to UAH156mn in 9M21, from UAH591mn in 6M21, Centrenergo highlighted. Its 3Q21 revenue decreased 45% y/y to UAH3,136mn despite more than doubled power generation. The key driver of its bottom line increase in was UAH512mn in “other operating income” (up 33x y/y) which allowed it to increase EBITDA to UAH499mn (up 25% y/y) in 3Q21. The company did not explain the nature of such “other” income. In 9M21, Centrenergo generated UAH8,909mn net revenue (down 40% y/y), UAH37mn EBITDA (down 6% y/y), which was a result of an increase of “other operating income” by 11.6x y/y. The company also reported that it had concluded contracts for coal supplies from Poland and Kazakhstan and is in talks to increase supplies of coal from these countries to secure greater coal stockpiles for the upcoming heating season. As of October 23, Centrenergo’s power plants had 91 kt of coal stockpiles, according to Energy Ministry data, which is enough for just 8-10 days of power generation.
9.2.11 Metallurgy & mining corporate news
● Metinvest
EBITDA at Ukraine’s largest steelmaker Metinvest (METINV) rose 3.4% m/m to $963mn in July, according to its monthly results published on October 5. The holding’s revenue inched up 1.6% m/m to $1,749mn. EBITDA excluding joint ventures (JVs) slid 1.9% m/m to $790mn in July. Metinvest’s operating cash flow before working capital changes increased 6.1% m/m to $778mn in July, whereas cash flow from operations after working capital changes (but before profit tax and interest) soared 31.8% m/m to $977mn. Cash inflow due to changes in accounts receivable was $457mn in July (vs.an outflow of $139mn in June). Cash outflow due to changes in accounts payable was $151mn (vs. an inflow of $242mn in June).
Metinvest's credit rating is higher than that of Ukraine. The international rating agency S&P Global Ratings has raised Metinvest's long-term credit rating from "B" to "B +", which is one step higher than Ukraine's sovereign rating, and the outlook is stable. It is explained that in its report, it noted that the rating increase is due to the positive effect of operational improvements, as well as a significant reduction in the group's debt, reported Interfax.
Metinvest, Ukraine’s largest private company, will reduce its workforce over the next decade by one third, to 60,000, and will move to higher value steel products, Yury Ryzhenkov, Metinvest CEO, tells Forbes Ukraine.
78 UKRAINE Country Report November 2021 www.intellinews.com