OREANDA-NEWS. July 28, 2009. DTEK, the fuel and energy leader in Ukraine, announced today that the company’s operational results for H1 2009 show that it is maintaining its leadership in the coal and electricity sectors. DTEK increased its share of Ukraine’s total coal production to 30.3%, electricity generation to 15.4% and electricity distribution to 7.5%.
 
In the first half of 2009, DTEK enterprises extracted 8.6 million tonnes of coal, 1.7% less than the same period last year. At the same time, Ukraine’s total extraction volumes decreased by 9.3% year-on-year due to the country’s economic slowdown. 
 
However, DTEK has been able to maintain high levels of coal production due to the steady demand from its energy generating enterprises and the recommencement of coal exports.
 
The company’s share of total Ukraine coal production increased from 27.8% in H1 2008 to 30.3% in H1 2009. A slight 4.1% decrease in concentrate production volumes at its coal enrichment plants was related mostly to special requirements for exported coal. DTEK expects to export 1.2 million of tonnes of coal by the end of 2009.
 
The company’s share in thermal generation during the first half of 2009 reached 45.5%.[1] Electric power supply to SE Energorynok from Vostokenergo, the energy generating asset of DTEK, reached approximately 6.4 TWh during H1 2009,   27.9% less than in the same period last year. Electric power supply from Dneproenergo during the first half of 2009 decreased by 28.4% to 5.3 Twh. The decrease was associated with the decline of electricity consumption in Ukraine due to lower industrial production.
 
During the first half of 2009, the installed capacity utilisation rate (ICUR) at Vostokenergo’s power plants reached 42.8%, the highest level in Ukrainian thermal generation. Improved equipment maintenance resulted in a 6.2 grams per Kw/ h reduction in fuel consumption for electric power production during the second quarter of 2009 (from 392.9 grams per Kw/ h to 386.7 grams per Kw/ h) and by 3.2 grams per Kw/ h during the first half of 2009 (from 388.4 grams per Kw/ h to 385.2 grams per Kw/ h). The overhaul of the second unit at Zuevskaya TPP increased its installed capacity by 20 MWh as of July 1, 2009, boosting the total installed capacity of Vostokenergo to   4 105 MWh.
 
During the first half of the year, electricity transmission by DTEK’s energy supply companies, Service-Invest and Energougol ENE , decreased to 5.6 TWh, 1.6 TWh less than in the corresponding period of 2008, due mostly to the decrease in electricity consumption in the metal, mining and chemical sectors. Despite the decrease in electricity transmission, DTEK’s share of the wholesale electricity market in Ukraine rose by 1.0% during the first half of 2009 to 7.5% of the total volume of marketable electricity supply.
 
Commenting on the operational results, DTEK Chief Executive Officer Maxim Timchenko said:
 
 “While our latest results demonstrate DTEK’s continued industry leadership, the current situation in Ukraine causes us great concern as it threatens to compromise the country’s energy security. The country coal surplus is totalling 0.5 million tonnes per month and TPPs and mine warehouses are completely full.
 
“The underfunding of our electricity industry as income decreases has had a negative impact on the thermal generation sector. It is estimated that the Ukraine power generation sector’s total losses will reach 3.6 billion UAH by the end of 2009. TPPs output decreased by 20 to 25% and TPPs tariffs fell by 20%.
 
“The thermal generation sector needs government support, including an increase to end consumer tariffs by a minimum of 50% or 10 kopecks/ kilowatt per hour. This measure alone would allow the country thermal generation sector to show zero margins in 2009,”  he concluded.