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“Kropachev is close to Ihor Kononenko, who is a close associate and long-time business partner of president Poroshenko”
a higher multiple: $73/kW, the expert wrote in a note on October 4.
Recently, Centrenergo and the nation's State Reserves Agency (SRA) signed
a number of amicable agreements on repayment by the company of about UAH85.5mn of debts, which were formed in the late 1990s when Centrenergo borrowed natural gas, boiler oil, and coal from the SRA, but failed to return them.
"All moves between Centrenergo and the SRA on repayment of this sum have been agreed in court," the agency's media office said in a statement, adding that Centrenergo will handle the repayment in stages: the entire sum of the debt is due to be repaid within four years.
As of late 2017, Centrenergo's total debts to state companies stood at UAH600mn, while its debts to commercial firms
were at UAH130mn, according to the Minprom online outlet.
vonolymanska launched its production of hard steam coal and started pursuing this niche on the market. In late January, a company related to Chervonolymanska won an open tender to supply 0.1mn tonnes of hard coal to Centrenergo at UAH2,400 per tonne, which is less than the prevailing market price.
Chervonolymanska mined 0.90mn tonnes of coal in 2017, all of which was coking coal, according to statistics from Ukraine’s energy ministry.
What is Centrenergo?
Centrenergo plays a leading part in power generation for the Kyiv, Kharkiv and Donetsk regions. The company supplies electricity to the wholesale energy market and thermal energy for heating and hot water supply of the towns of Svitlodarsk (the Donetsk region), Ukrainka (the Kyiv region) and the village of Komsomolske (the Kharkiv region).
The company consists of three thermal power plants – Vuglegirska, Zmiivska and Trypilska. The total designed capac- ity of the power plants amounts to
7,690 MW which is equal to about 14% of Ukraine’s total generating capacity. Within total electric power production in Ukraine the electricity share gener- ated by Centrenergo accounts for about 8% of the total, according to the com- pany's marketing material.
The company’s largest power plant, Vuglegirska, is located in the industrially advanced Donbas region of Ukraine, which is home to lots of power-intensive industrial enterprises. The Donetsk coal basin is situated in the area as well.
The Zmiivska plant is located in the Kharkiv region adjoining the Donbas area, which also has advanced industry and agriculture.
The third power plant, Trypilska, is located in the Kyiv region near to the
capital of Ukraine. After the Chernobyl nuclear power plant was shut down Trypilska became the largest supplier of electric power in the Kyiv region.
Debts
Concorde's Paraschiy believes that the announced starting price implies total EV of about $260mn, EV/Capacity of $55 per kW and EV/Output’17 of $41/MWh.
In terms of EV/Output, most of the previous privatisation tenders in Ukraine were closed at a lower price ($10-$33 per MWh), except for the sale of Zakh- idenergo’s 45% stake in 2012 (at $45/ MWh). In terms of EV/Capacity, the previous tenders, on average, brought
Find more Eastern Europe content at www.bne.eu/eastern-europe
Selected headlines from past month:
· KRUK REPORT: Merkel gives Poroshenko an image bump with a trip to Kyiv
· Ukrainian acid attack victim Kateryna Handziuk dies of her injuries
· Russia to double support to local winemakers
· Ukraine exercises its call option on the expensive August $725mn Eurobonds
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