OREANDA-NEWS. January 26, 2010. DTEK announced today the company’s production results for 2009, ahead of its full year results, which will be issued in the spring.
 
Coal extraction and enrichment
 
Coal extraction at the Company’s plants, Pavlogradugol and Komsomolets Donbassa, totaled 17.6 million tonnes for the year,  a marginal increase of 0.2% compared with 2008. This consolidated DTEK’s market leading position, with a market share of 24.4%.
 
At its coal extraction plants, DTEK continues to implement a large scale investment program. At the end of December, the company started operations of the Bucyrus DBT Europe GmbH knife equipment at Stepnaya mine, part of Pavlogradugol.  As a result of the implementation of the new technology, the Company anticipates that daily extraction volumes will reach 3,500 tonnes, while the combine extraction technique generates daily extraction volumes of between 1,000-1,500 tonnes.
 
At the Komsomolets Donbassa, DTEK is seeing positive results from its in-mine methane capturing and utilization programme. Thanks to this, 300 000 Emission Reduction Units (ERU) were sold in correspondence with the Kyoto protocol.
 
DTEK has maintained the level of run-of-mine coal enrichment at last year’s level of 11.6 million tonnes (-0.9%), though it has observed some decrease in concentrate production (-5.4%), which is a result of fraction composition and ash content change.  
 
Electricity generation
 
DTEK’s electricity generation division is represented by Vostokenergo and its associated company Dneproenergo.
 
In 2009, Vostokenergo (DTEK) maintained its leading position in Ukraine’s thermal generation sector with a market share of 25.2%, despite observing a 13.6% reduction in supply to Wholesale Energy Market. In total, DTEK supplied 14.5 billion kWh during 2009, compared with 16,8 kWh in 2008.
 
Dneproenergo supplied 11.8 bln kWh, 19.9% less than in 2008(14.7 bln kWh, but still provides it with a 20.5% share of the thermal power generation sector (2008: 22.3%)***. This decrease in the supply is a result of a reduction in power consumption during the year, which in turn was the result of a decrease in industry production throughout major sectors in Ukraine However, in the fourth quarter of 2009, DTEK has observed an improvement in supply volumes, with Vostokenergo increasing supply by 11.1% and Dneproenergo increasing by 19.6%, both compared to the equivalent period in 2008.
 
Vostokenergo has maintained its position as the most demanded thermal power generation company due to the high quality and low cost of the energy produced and supplied.  Vostokenergo’s installed capacity is also the highest among Ukrainian TPPs (44.7%).
 
In 2009 the Company has completed the second stage of modernization including  modernization of 7th unit of  Kurakhovskaya TPP , 1st unit of Zuevskaya TPP  and 10th unit of Luganskaya TPP.
 
On 18 December 2009, Zuevskaya TPP №1 was connected to the grid, and initial tests have begun. As the result of DTEK’s this reconstruction program, the following results are anticipated: total unit capacity increase of 20 MW, extension of the company’s flexibility range from 135 to 170 MW, decrease of fuel equivalent  consumption by 2.3% and, encouragingly, a 50% reduction of dust emissions into the atmosphere.
 
The same scope of reconstruction works is implemented on 7th unit of  Kurakhovskaya TPP and 10th unit of Luganskaya TPP. Works on Luganskaya TPP and Kurakhovskaya TPP will be continued throughout the current year.
 
In 2009, DTEK continued repairs of 18 energy units within Dneproenergo, with a total installed capacity of 5809 MW. Pridneprovskaya TPP, unit №9 and Krivorojskaya TPP, unit №3 are currently in the reconstruction stage. The main focus of repair programme is on improvements to operational safety, simplifying the maintenance procedures of the equipment, and continuing to reduce dust emissions resulting from DTEK’s operations.
 
Electricity distribution
 
Despite the decrease in electricity power consumption in Ukraine, share of the wholesale energy market by power supply companies (Service –Invest Ltd and PES- Energougol Ltd) has grown in 2009 in comparison with 2008 by 1.2% and totaled 7.7% *** of Ukraine’s total tradable power supply.  The total volume  of electricity purchase on the Ukrainian Wholesale Electricity in 2009 was 11.8 million kWh, a 7.3% increase on 2008.  In the fourth quarter, though, this increased to approximately 35% y-o-y. This growth is attributable to an increase in energy consumption by mining and metallurgy enterprises.
 
During 2009, DTEK progressed a number of major investment projects, such as the construction of the Budenovskaya substation in Donetsk (PES-Energougol), remittance of Rutchenkovo substation with 110 kW electric potential that also included construction of high-voltage lines as well as reconstruction of HSKPZ-1 substation (Service- Invest).


Reference
 
DTEK is the first private vertically-integrated power company in Ukraine. It is part of the financial and industrial group System Capital Management (SCM). The enterprises of DTEK build up an efficient operational chain of coal production and enrichment, electricity generation and distribution.
 
The coal business of DTEK includes Pavlogradugol (consisting of ten coal mines), Komsomolets Donbassa Mine and five enrichment plants. According to 2008 performance results, the Company’s share in the Ukrainian coal mining industry was 22.6%.
 
The generation business of DTEK is represented by Vostokenergo and the associated Dneproenergo Company, in which DTEK owns 47.46%. According to 2008 performance results, the share of Vostokenergo and Dneproenergo in thermal generation of Ukraine was 25.4% and 22.4% respectively.
 
Service-Invest and Energougol ENE represent the electricity distribution business of DTEK. Their share of electricity purchase in SE Energorynok in 2008 made 6.5%.