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such a measure is needed to save costs amid the tough situation on the energy and coal markets in Ukraine. Recall, in late March, DTEK Energy reported on the closure of two smaller coal mining assets. Pavlohrad Coal is Ukraine’s biggest producer of steam coal. In 2019, it mined 18.2mmt of ROM steam coal, or 73% of Ukraine’s total. Meanwhile, DTEK Energy expects to complete its debt restructuring in 1.5-2 months, Tymchenko said on April 14. He also said that DTEK Renewables (DTEREN), an asset of DTEK Group, is not going to initiate debt restructuring talks, providing there will be no radical changes in the regulation of renewable energy.
9.1.10 ​Renewables corporate news
S&P Global Ratings affirmed the credit rating of DTEK Renewables at B- with a Stable outlook​, the agency reported on April 17. It acknowledges risks for a ​green energy rates revision in Ukraine​, the recent announcement of ​debt restructuring talks by sister company DTEK Energy​(DTEKUA), as well as worsened payment discipline on the Ukrainian energy market, still expecting that DTEK Renewables will maintain its sufficient liquidity and will go on with its new projects. S&P expects the company to demonstrate FFO-to-debt of above 12% and debt-to-EBITDA close to 4x from 2020. The agency also expects DTEK Renewables will “refrain from any large-scale dividends or loans to related parties.”​ T​ he agency will lower the DTEK Renewables rating in case green tariffs will be lowered more than the draft legislation assumes, in case the credit quality of parent DTEK B.V. worsens, or the company faces significant liquidity issues due to a delay in payments on the energy market or a need to support financially the parent group. The company’s rating could be upgraded in case its FFO-to-debt ratio improves above 20% and debt to EBITDA falls materially below 4.0x.
9.2.11 ​Metallurgy & mining corporate news
Ukraine's state-run ​United Mining and Chemical Company (UMCC)​ is on the brink of shutdown​, according to a statement by UMCC's Volnogorsk and Irshanks divisions, quoted by RBC Ukraine. "We are facing complete destabilisation of operative governance at UMCC," reads the statement, signed by Alexander Prokopenko, head of Volnogorsk mining and metals integrated works, and Viktor Sivchenko, head of Irshansk mining and processing works. "If these trends continue, the shutdown of the two divisions is inevitable," reads the statement. The two division heads have also sent letters to the country's president, prime minister, head of the security service SBU, interior minister and head of the state property complaining that UMCC has $8mn on its accounts which is not used as working capital, putting restrictions on daily operations, including repair work. Since the two divisions do not have the status of legal entities, they are unable to tap the funds in the parent company's accounts. "If the companies shut down, losses will amount to UAH2bn ($73mn)," the two subsidiaries' heads said in the statement. As of April 8, Peter Davis has been UMCC's acting chairman of the board. The company recently accused the state property fund of interfering in its operations.
● Metinvest
EBITDA at Ukraine’s largest steelmaker​ ​Metinvest​ skyrocketed 76.7% m/m to $129mn in February​, according to its monthly results published on
64​ UKRAINE Country Report​ May 2020 ​ ​www.intellinews.com