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so-called Burshtyn Energy Island, where DTEK’s Burshtyn power plant is the dominant producer of electricity.​ ​Based on the committee’s preliminary conclusions, DTEK Zakhidenergo (operator of Burshtyn TPP, part of DTEK Energy, DTEKUA) deliberately reduced the supply of power to the island in the day-ahead and intraday market segments, which forced consumers to buy electricity at the balancing market, where prices are higher. Also, the committee suspects the company offered unjustifiably high prices on the island's day-ahead segment in July-October. In turn, DTEK's intermediary, D.Trading, purchased most of the import capacity to the island, thus limiting alternative sources of electricity for consumers. The collected evidence and conclusions have been submitted to the lawyers for DTEK Zakhidenergo and D.Trading to prepare their legal positions in the case, which will be heard by the committee. The committee stated that in case it recognizes the abuses, the defendants will face a penalty of up to 10% of their revenue for the last reporting year.
Ukraine’s leading coal & power producer DTEK Energy (DTEKUA) reported a 15% y/y decline in net revenue to UAH76.80bn in 2019​, according to its June 5 filing. The decline was the result of 12% y/y less electricity generated for sale and 7% less coal mined, as well as smaller prices for power and coal. The company’s gross profit decreased 46% y/y to UAH10.34bn, operating profit plummeted 95% y/y to UAH0.54bn, and net profit dropped 62% y/y to UAH1.84bn. The company’s EBITDA fell 45% y/y to UAH13.79bn, according to Concorde Capital calculations.​ ​The company’s total debt decreased 19% y/y in UAHterms to UAH45.26bn, while its net debt-to-EBITDA ratio worsened to 3.3x as of end-2019, from 2.1x a year before. Its operating cash flow before working capital changes decreased 33% y/y to UAH17.61bn.​ ​In 1Q20, the company’s revenue fell 60% y/y to UAH12.78bn, which is a result of a 38% y/y decline in amount of power sold and 34% y/y slide in the average electricity price. The company’s operating cash flow before working capital changes plunged 77% y/y to UAH1.94bn and net cash generated from operations decreased 21% y/y to UAH1.51bn. DTEK Energy paid UAH201mn of interest in 1Q20. The company’s end-March cash position amounted to UAH1.17bn ($41mn).
9.1.10 ​Renewables corporate news
Kernel, one of the largest Ukrainian agricultural groups, will channel $170 million in the implementation of alternative energy projects. ​The agricultural group said on its Facebook page on June 6 that a green energy turbine with a capacity of 7.5 MW operates to its full capacity at the oil crushing plant in Kropyvnytsky.
S&P Global Ratings placed on June 26 the B- rating of​ ​DTEK​ Renewables (DTEREN) on its CreditWatch with Negative ​implications, the agency reported the same day. The key driver of the move is the worsened payment discipline of the state-run guaranteed buyer of renewable electricity. DTEK Renewables only received 18% of its cash payments from the guaranteed buyer for March as of June 26, S&P reported (before March, the company enjoyed 100% payments). The rating agency warns that the company’s liquidity could come under more pressure if payments for green energy won’t resume by end-August.
Ukrainian power company Kherson has doubled its wind and solar power since 2018 ​and now has the capacity the meet 40% of the electricity needs of region, reports hersonweek, a local news site. Located north of Crimea, with
75​ UKRAINE Country Report​ July 2020 ​ ​www.intellinews.com