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result recorded a profit of UAH306.7mn, while in July-September the company suffered a loss of UAH3bn. The loss is determined by the seasonal increase in the generation of renewable energy sources. As of September 2021, Ukrenergo had UAH77bn ($2.85bn) of debt obligations, reported marlin.org.ua.
9.1.10 Renewables corporate news
S&P Global Ratings reported on December 6 that it had lowered the credit rating of DTEK Renewables (DTEREN) by one notch to CCC+ while keeping the rating’s outlook at Stable. The rating action has been triggered by S&P concerns that the company “has exhausted its liquidity cushion” due to massive CapEx related to the on-going construction of the Tiligul wind farm which left the company with mid-November cash of €18mn and €41.7mn at its debt-service reserve account. In mid-November, the company was discriminated against by its only customer, state company Guaranteed Buyer, which failed to repay UAH3bn (€97mn, according to S&P estimates) of arrears designated to DTEK Renewables in mid-November. The rating agency sees “heightened risks for receivables collection” by the company due to the energy crisis and a conflict between the Ukrainian president and the company’s beneficiary owner. S&P estimated that the Tiligul project, worth €578mn, has been already financed by €311mn, and it sees that DTEK Renewables may face a potential liquidity gap of at least €70-100mn. “The company currently funds the project with short-term shareholder loans and may have some flexibility for capex deferrals,” S&P stated, adding that it could be difficult for it to secure new long-term debt now.
Renewable electricity producer SREW N.V. sues Ukraine for €70mn.
According to the Ministry of Justice, the plaintiff alleges a violation of his rights as an investor arising from the agreement between the governments of Ukraine and the Belgian-Luxembourg Economic Union on mutual encouragement and protection of investments. Belgian SREW N.V. - investor in Dnipro-Buzka wind station LLC in Kherson region. The capacity of the station is 110 MW. The company has turned to arbitration because it believes that Ukraine "unjustifiably and inconsistently destroyed the legislative regulation in the field of renewable energy." Namely, it concerns establishing a requirement for full payment of the book value, an additional reduction of the "green tariff," an increase in the share of reimbursement of the cost of settling the imbalance in favor of Guaranteed Buyer (Government).
OKKO has invested UAH 25mn in 2021 to install solar panels at its gas stations. OKKO's total design solar capacity is currently about 1.4 MW. The amount of electricity they can produce during the year saves more than 1,000 tonnes of conventional fuel from non-renewable sources. As greendeal.org reported, the electricity produced covers the filling stations' needs in energy resources. Their capacity is enough for a medium-sized gas station complex to fully provide itself with its electricity in the summer months.
9.2.11 Metallurgy & mining corporate news
● Metinvest
Metinvest has put into operation a $200mn iron ore dressing complex that it calls “one of the most ambitious projects in the mining industry in Ukraine,” Located at the Northern Iron Ore Beneficiation Works, or Severny GOK, the
77 UKRAINE Country Report January 2022 www.intellinews.com