Page 74 - UKRRptNov19

9.2.9 Utilities corporate news
State-controlled power generation company Centrenergo posted 9M19 net revenue of UAH10,902mn, or 4% less y/y, according to its selected financial data posted on ProZvit, a disclosure portal for state-controlled companies. Its gross profit was negative UAH520mn in 9M19 (down from positive UAH674mn a year ago). Centrenergo’s 9M19 operating loss was UAH1,681mn, vs. a profit of UAH623mn in 9M18, and net loss amounted to UAH1,488mn vs. net profit of UAH490mn a year ago. The company reported UAH1,189mn of “other operating losses” in 9M19, a 7.5x y/y surge, most likely due to one-off costs, e.g. the writing off or provisioning of some receivables, which Centrenergo incurred in 2Q19. Looking at 3Q19, Centrenergo’s revenue was UAH3,643mn, up 8% y/y and 13% more qoq. Its gross loss was UAH318mn in 3Q19, down from a profit of UAH40mn a year ago and 16% more than the UAH273mn loss in 2Q19. The company’s operating profit was negative UAH291mn, down from positive UAH69mn a year ago and 80% less than negative UAH1,428mn in 2Q19. Centrenergo’s net loss was UAH291mn in 3Q19, down from a profit of UAH50mn a year ago and 76% less than a UAH1,227mn loss in 2Q19.
Ukraine’s Antimonopoly Committee opened on September 4 an investigation against DTEK Energy’s subsidiary on signs Ukraine's biggest electricity producer has been abusing its market power, the epravda.com.ua news site reported the same day. The committee said in a statement it will investigate the activity of DTEK-Zakhidenergo in the so-called Burshtyn Energy Island, where the holding’s Burstyn power plant accounts for about 90% of electricity production. (This is a part of the power grid in Ukraine's westernmost regions that has been separated from Ukraine’s energy system and connected to the EU system ENTSO-E). DTEK reduced electricity supply to the island on the day-ahead and intraday markets, where power prices are capped by the regulator (at UAH959-2,048 per MWh, depending on day time), according to the preliminary conclusions of the committee. Simultaneously, the plant offered more electricity on the balancing market, where price caps are 15% higher than on the day-ahead market. According to the committee, this has led to unsatisfied demand for electricity on the day-ahead market, which forced consumers to buy more electricity on the balancing market at higher prices.
9.1.10 Renewables corporate news
To improve air quality, Metinvest, Ukraine’s largest mining and metallurgical holding, signed an agreement to spend $400mn through 2024 to reduce pollution caused by its industries in Mariupol, Kriviy Rih, and Zaporizhia. Residents say Metinvest cut production during the two days of the conference to clean up the air for the foreign visitors.
DTEK Renewables inaugurated the second-largest solar plant in Europe
on October 31, the 240 MW Pokrovska plant in southern Dnipropetrovsk Oblast. Built-in six months with 840,000 panels supplied by China’s Risen Energy, the plant spreads across 437 hectares of degraded industrial land, the equivalent of 817 football fields. In Europe, the only larger plant is the 300 MW Cestas solar station in western France. The plant is part of a $1bn, 1 gigawatt solar and wind crash investment program undertaken this year by DTEK. In February, the company inaugurated a 200 MW plant in Nikopol, 30 km east of Pokrovska. Today, DTEK plans to inaugurate the Prymorska wind power plant, a 200 MW station that rivals DTEK’s existing 200 MW wind plant, Botievska,
74 UKRAINE Country Report November 2019 www.intellinews.com