Page 75 - UKRRptOct21

now, we are looking at several banks with the help of KPMG, and hope to conclude the transaction by the end of the first quarter of 2022." The investment into banking is expected to cost Ukrposhta $200 million, which corresponds to the minimum level of capital of banks in accordance with NBU regulations.
The EBRD will lend €13 mln to Nova Poshta. The European Bank for Reconstruction and Development (EBRD) will provide a loan of €13 mln to Nova Poshta for the construction of an automated parcel sorting terminal in Dnipro.
9.2.9 Utilities corporate news
DTEK Energy EBITDA improves in 1H21. The EBITDA of Ukraine’s leading coal and power holding DTEK Energy (DTEKUA) reached $109mn (about UAH3.03bn) in 1H21, according to the company’s presentation released on September 17. This is a 1% y/y decline in $terms. Meanwhile, in UAHterms, the company’s EBITDA increased by about 8% y/y to UAH3.15bn, Concorde Capital estimated based on the company’s financial report. Key factors that led to the increase of EBITDA were higher power output and better achieved electricity price, which allowed the company to improve its revenue. DTEK Energy’s net revenue increased 15% y/y to UAH23.51bn. Meanwhile, its inflated coal purchase costs (up 3.9x y/y to UAH2.57bn) and increased natural gas prices affected its margins (EBITDA margin decreased to 12.9% in 1H21, from 14.5% a year before, according to the company’s presentation). DTEK Energy’s 1H21 operating loss improved to UAH0.67bn (from UAH7.63bn a year before) and net loss improved to UAH0.71bn (from UAH15.32bn a year before). Its cash from operations before working capital changes decreased 20% y/y to UAH2.39bn, while net cash generated from operations improved 30% y/y to UAH1.46bn. Its use of cash for PP&E purchase increased 64% y/y to UAH1.98bn. The company’s total debt as of end-June amounted to $1,715mn, of which $1,645mn is obligations on Eurobonds. The company is yet to restructure its debt of $13mn par value. At its conference call the same day, DTEK Energy’s management stated that it is going to import about 1.6 mmt of coal in 2H21 to prepare for the upcoming heating season (coal import was 1.2 mmt in 1H21 and 0.5 mmt in 2H20). Its own production of consumable coal is expected at 7.0 mmt in 2H21 (up from 6.0 mmt in 1H21). The management said the company’s TPPs are enjoying better power pricing now (about UAH1.7/kWh in September, up from average UAH1.42/kWh in 1H21).
9.1.10 Renewables corporate news
A large-scale wind project that will be located in the Kherson region in Southern Ukraine will commence construction in 2023. The project will bring EUR 76 mln of investment and creating 360 jobs to the region. CMS Cameron McKenna Nabarro Olswang in Kyiv advised CWP Europe (CWP) on the acquisition of 73MW wind project. An acquisition represents an important step for CWP and its ambitious plans in Ukraine. A market where renewables only account for a 4% share of overall energy generation in 2015 and is now projected to reach up to 25% over the next decade.
Goldwind, China’s largest wind turbine manufacturer, has won Ukraine’s biggest wind turbine contract: 135 turbines for an estimated $800mn. Contracted by Emergy, formerly NBT, Goldwind will supply 75 4.5 mw turbines
75 UKRAINE Country Report October 2021 www.intellinews.com