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15.1% m/m to 56.3 kt in October, and particularly its production of OCTG pipes lost 25.3% m/m to 19.7 kt. Its railway product output slid 5.8% m/m to 14.0 kt in October, while steel production plunged 34.6% m/m to 63.2 kt.
● DTEK
Ukraine’s leading coal and power producer DTEK Energy (DTEKUA) mined 13.70 mmt of ROM coal in 10M21, Concorde Capital calculated based on sector-wide data provided by Energy Ministry. This is 13.2% less y/y and 3.0% less y/y on a like-to-like basis (adjusting for the mine that DTEK discontinued operating). Recall, in January, DTEK Energy terminated a long-term lease agreement regarding Dobropillia Coal and transferred all its assets under government control. In October alone, the company produced 1.39 mmt of ROM coal, which is 7.9% more than in September (on daily average basis) and 13.9% less y/y (but 4.6% more y/y on like-to-like basis). Meanwhile, DTEK Energy reported on November 3 that it mined “over 1.4 mmt” of coal in October. In the same report, it confirmed its mining guidance of “almost 17 mmt” of ROM coal in 2021. To achieve this result, the company is planning to launch six new longwalls. It commissioned 23 new longwalls in 10M21, including two in October. This slightly contrasts with its data provided in early October, when it reported on 22 longwalls commissioned in 9M21, including one in September. Coal mining of ROM steam coal in Ukraine reached 18.28 mmt in 10M21, which is 3.5% more y/y. The total mining of steam and coking coal increased 2.2% y/y to 24.13 mmt.
Ukrenergo lost an appeal by Akhmetov's company for UAH400mn. The Northern Commercial Court of Appeal refused to meet Ukrenergo's request and upheld the decision of the first instance to recover UAH399.4mn ($1.5mn) in debts from Ukrenergo in favor of Rinat Akhmetov's DTEK Dniproenergo. According to Finabalance, the debt was formed due to improper fulfillment of obligations by the state company under the agreement on participation in the balancing market.
Ukraine’s leading coal and power holding DTEK Energy (DTEKUA) increased net revenue 14% y/y to UAH35.94bn, according to its abridged financials released on November 19. Its 9M21 operating profit reached UAH0.095bn, up from UAH 7.48bn losses a year ago. Its net loss decreased 90% y/y to UAH1.98bn. Its unadjusted EBITDA decreased 8% y/y to UAH4.91bn in 9M21, Concorde Capital estimates. DTEK Energy generated UAH4.35bn of operating cash flow before working capital changes in 9M21 (down 24% y/y) and UAH2.79bn of net cash flow from operations (up 26% y/y). Its investments into PP&E increased 50% y/y to UAH3.09bn. Its net debt decreased 30% y/y to UAH40.00bn and net debt to LTM EBITDA reached 4.5x as of end-September 2021 (down from 8.7x a year ago). The holding’s thermal power plants increased power generation 12% y/y to 17.72 TWh in 9M21, while decreasing coal mining 13% y/y to 12.27 mmt (down 4% y/y on like-to-like basis). Its coal import for own use increased 3.2x y/y to 1.64 mmt as its marketable coal output decreased 6% y/y and coal consumption by its thermal power plants increased 16% y/y. Its average electricity price improved 20% y/y to UAH1.52 / kWh in 9M21. In 3Q21, DTEK Energy’s average achieved electricity price increased reached UAH1.69 / kWh (up 29% y/y and up 18% qoq). Its revenue increased 11% y/y and 37% qoq to UAH12.43bn, and EBITDA increased 3.5x qoq to UAH2.55bn (flat y/y) in 3Q21.
80 UKRAINE Country Report December 2021 www.intellinews.com