DTEK boosts hard coal production 9.2% yoy in 10M17

2017/11/10 14:39:16

Analyst: “This was the second month in a row of increasing month-over-month daily output after consecutive six months of decline. If that trend continues, DTEK Energy will mine 22.6 mmt of hard coal in 2017, or slightly above what we earlier expected. We remain bullish about DTEKUA bonds.”

 

 


KYIV, Nov 10, 2017 - Ukraine’s leading coal & power holding DTEK Energy (DTEKUA) boosted its mining of hard steam coal 9.2% yoy to 18.8 mmt, Concorde Capital informed clients, based on DTEK’s Nov. 8 press release. In October alone, DTEK’s mines produced 1.9 mmt of coal, up from 1.8 mmt in September, the holding reported.

 

Recall, DTEK has lost its anthracite-producing mines located on the occupied territory of Donbas in March 2017. Now it controls only three mines in Ukraine, all of which produce hard steam coal. Out of its eight remaining thermal power plants, five are designed to burn hard steam coal and three burn anthracite. The holding is planning to reconfigure some its power units at its anthracite-burning power plants to burn hard coal.

 

Concorde analyst Alexander Paraschiy added: “Based on this information, we estimate DTEK’s October coal production was 1.86 mmt, which is 1.2% better than September (in daily average terms) but 1.2% less yoy. While the holding’s October coal output lags last year’s result, the trend looks encouraging. This was the second month in a row of increasing month-over-month daily output after consecutive six months of decline. If that trend continues, DTEK Energy will mine 22.6 mmt of hard coal in 2017, or slightly above what we earlier expected. We remain bullish about DTEKUA bonds.”

 

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For more information, link here: www.concorde.ua 

 

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