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in an auction for Dniprovskyy Steel PP&E assets. Metinvest mentioned the poor technical conditions of Dniprovskyy Steel assets as a factor preventing the holding from bidding for them. Dniprovskyy Steel entered receivership in October 2020, with creditor claims amounting to UAH130bn ($4.7bn), including UAH20.9bn ($751mn) by Optimal Trade LLC and UAH20.7bn ($744mn) by Metinvest Holding LLC, according to Interfax-Ukraine. In 2020, Dniprovskyy Steel produced 2.58mmt of crude steel (+16% y/y), its revenue was $1.02bn (+2%), and its unadjusted EBITDA was a positive $3mn (a negative $541mn in 2019), according to the plant’s 2020 financial report. Its net operating cash flow was $11mn in 2020 (7x y/y) and its CapEx was $9mn (2x y/y).
Metinvestsubsidiary Pokrovske Coal output rises 18% in 4M21. Private joint stock company Pokrovske Coal produced 2.21mmt of raw coking coal (18.4 kt per day) in 4M21, an 18.1% y/y rise, according to Concorde Capital’s analysis of Ukraine's Energy Ministry data. In 2020, Pokrovske Coal’s output was 6.13mmt of raw coking coal (16.8 kt per day), a 22.6% y/y rise. In 2019, Pokrovske Coal produced 5.0mmt of coal (13.7 kt per day), a 25.8% y/y jump. Metinvest percentage , Ukraine's largest steelmaker, in March increased its effective interest in the so-called Pokrovske coal business, which includes Pokrovske Coal, to a controlling stake. Dmytro Khoroshun: Pokrovske Coal’s 2021 output will amount to 6.9-7.7mmt (19-21 kt per day), or 13-25% more y/y, we continue to expect.
● Ferrexport
Betting on strong Chinese demand for iron, Ferrexpo plans to spend $2bn in capital investments to double its production of iron pellets by 2030, reports Interfax-Ukraine. This year, the LSE-listed company is increasing production by 14%, to 12mn tons. A combination of strong Chinese demand and the Biden Administration’s planned infrastructure renewal plan have contributed to a doubling of world iron ore prices over the last year, to $208 a ton on May 18.
● Other
Ukraine’s leading coal and power holding DTEK Energy percentage produced 5.71mmt of ROM coal in 4M21, Concorde Capital calculated based on sector-wide data provided by Energy Ministry. This represents a 12.3% decrease y/y. On a like-to-like basis (adjusting for the mine that DTEK discontinued operating), the holding’s mining decreased 1.1% y/y in 4M21. Recall, in January, DTEK Energy terminated a long-term lease agreement for Dobropillia Coal and transferred all its assets under government control.
In April alone, DTEK Energy mined 1.29mmt of coal, which is 59% more y/y (and 59% more y/y on a like-to-like basis), but 11% less m/m (on daily average basis). In the third quarter of 2021, the holding mined 4.42mmt of ROM coal, or 23% less y/y (and 11% less on like-to-like basis).
Total ROM coal output in Ukraine increased 10% y/y in 4M21 to 10.38mmt, with state mines raising their output by 176% y/y to 2.31mmt (of which 0.89mmt was mined at the assets spun off from DTEK Energy).
Alexander Paraschiy: While in the first quarter of 2021 DTEK Energy’s production of hard steam coal was not enough to cover its internal coal needs, in April it turned back to self-sufficiency with own coal (even despite a decline in mining) as its April consumption of hard steam coal decreased by 34% compared to average monthly level
74 UKRAINE Country Report XXXX 2018 www.intellinews.com