Page 70 - UKRRptJan21
P. 70

          power companies in Ukraine, including DTEK.
DTEK​ is way ahead of the curve on moving toward renewables. ​For a taste of what is happening outside of Ukraine, check out the headlines in -- South Korea will increase the capacity of renewable electricity to 78 GW and In 2020, Germany consumed 47% of its electricity from renewable sources. But inside Ukraine, some people think it is fine to stiff investors in renewables. Beyond DTEK, these investors represent a United Nations of 20 different countries. Ukraine’s green rates are ‘high’ – because no one factors in the massive cost of one day dismantling the nation’s 15 nuclear reactors, most built in the 1980s. This year, the $1bn owed to wind and solar investors is freezing investment in the sector. Now, it is forcing DTEK and other companies to channel investment into projects outside of Ukraine. Hopefully, Yuriy Vitrenko, the new (acting) Energy Minister, can get this solved, and bring us 2019.
In a radical corporate turnaround, DTEK wants to be Ukraine’s leader in decarbonization, Timchenko said during his presentation of DTEK's strategy to 2030. “We want to change, we want to move from a high-carbon business to a green, efficient one,” he said. “We declare DTEK's carbon neutrality by 2040...Both the entire business structure and the investments that we will make in the coming years will allow us to fulfill this commitment.” By 2030, he promised, renewables will account of at least one third of electricity produced by DTEK.
  9.2.11 ​Metallurgy & mining corporate news
       ● Interpipe
EBITDA at Ukraine’s largest pipe and railway wheel producer​ ​Interpipe rose 8% y/y to $216mn in 9M20, ​according to the company’s financial statement and accompanying presentation published on December 16. The company’s net profit was $162mn in 9M20, compared with a $61mn loss a year before. Interpipe’s revenue dropped 24% y/y to $660mn in 9M20, driven mostly by a decline in pipe segment revenue by 35% y/y to $349mn. The decline was due to both sales volume declining (by 24% y/y) and lower prices (down 14%, on average). Revenue from its railway product segment decreased 6% y/y to $280mn on a moderate (3% y/y) decline in both, prices and volumes. The company’s EBITDA in its railway product segment (before reallocation from its steel segment) increased 14% y/y to $140mn in 9M20. Its pipe segment EBITDA was $10mn (down 79% y/y), while its steel segment EBITDA surged 123% y/y to $67mn in 9M20. In 3Q20, Interpipe’s railway product revenue plunged 27% qoq to $64mn (mostly due to a 22% qoq decline in prices) and the segment’s EBITDA plunged 29% qoq to $29mn. Its pipe segment revenue decreased 2% qoq to $117mn and EBITDA surged 4x qoq to $12mn in 3Q20 (which the company attributed to a $14mn release of provisions). Interpipe’s net operating cash flow decreased 3% y/y $120mn, while its cash ouflow for investments decreased 32% y/y to $26mn in 9M20. The company directed $218mn for debt repayment in 9M20, making its gross debt falling 64% YTD to $122mn and the ratio of gross debt to L12M EBITDA falling to 0.44x as of end-September (from 1.31x as of end-December 2019). Its net debt decreased 85% YTD to $12mn. In its presentation to investors, the company stated that its 4Q20 operating performance is expected to be similar to 3Q, while its costs are likely to be inflated further due to increased prices for
  70​ UKRAINE Country Report​ January 2021 ​ ​

   67   68   69   70   71