Page 65 - UKRRptAug19

Ukraine's leading coal and power holding DTEK power generation decreased by 16% year-on-year to 11.77 TWh of electricity in January-April , according to calculations of Kyiv-based brokerage Concorde Capital. This is also a 5.9% y/y decline on a like-to-like basis (excluding data from Kyiv-based heat and power plants that DTEK has not operated since August 2018). The company's coal-fired thermal power plants cut their power generation 5.8% y/y to 11.61 TWh, of which power units fuelled by scarce anthracite coal reduced their generation 24.3% y/y to 1.39 TWh. Power units burning hard steam coal decreased their generation 2.5% y/y to 10.22 TWh in January-April Total power generation in Ukraine slid 1.7% y/y to 53.83 TWh in 4M19, with DTEK Energy’s share of the total was 22% (down from 26% a year before). Concorde's Alexander Paraschiy forecasts DTEK will have a comparable decline this year (down 2-3% y/y on like-to-like basis, implying total decline of 7-8% y/y).
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Black Iron (BKI CN), a Canadian iron ore exploration and development company, was mentioned by name in several highly supportive statements by Ukrainian President Zelenskiy regarding its project in Ukraine, according to a July 3 company press release. Speaking at an Economic Club of Canada event on July 3, Zelenskiy stated that he and his government will be supporting Black Iron’s project as a priority, the press release said. Matt Simpson, Black Iron’s CEO who attended the event, said in the press release: “It is great to hear President Zelenskiy make very specific comments on the transfer of essential State Government-owned land to Black Iron for mine construction and commitment to provide maximum assistance at all stages of project implementation.” Recall, Black Iron reported on March 14 that it has been offered rights to an “ideal” parcel of land that it needs in order to develop its Shymanivske mine project. The land parcel will host a processing plant, tailings and waste rock, the company said in its press release, adding that it was offered via a plan developed by Ukraine’s Ministry of Defense. To secure the rights to this land, Black Iron needs to finalize discussions with the ministry on relocating its facilities currently there.
Ferrexpo declares DPS of USc 6.6, 1H19 EBITDA jumps 59% U kraine’s largest iron ore pellet exporter Ferrexpo (FXPO LN) reported its 1H19 financial results on August 2. Revenue increased 27.6% y/y to $787mn, while EBITDA surged 59.0% y/y to $372mn. Operating cash flow before working capital jumped 55.9% y/y to $382mn, while net cash from operating activities gained 63.4% y/y to $256mn. CapEx doubled y/y to $114mn. Ferrexpo’s net debt amounted to $282mn at the end of 1H19, a 23.4% drop for the period. The net debt-to-EBITDA ratio dropped to 0.44x at the end of 1H19, down from 0.74x at the end of 2018. Ferrexpo’s C1 cash production cost rose 10.6% y/y to $46.0/t. The company disclosed that the hryvnia’s 13% y/y appreciation in real terms contributed to a rise in the C1 production cost, and that $1.4/t of the increase was due to higher stripping volumes and $0.8/t – due to maintenance cost increases. Ferrexpo also announced that its directors have declared a $0.066 per share interim dividend, to be paid on September 3. The record date for this dividend is August 16, and the ex-dividend date is August 15. The company provided no news on its independent review into the Blooming Land affair , saying that the review committee is seeking to conclude its review as soon as possible.
65 UKRAINE Country Report August 2019 www.intellinews.com