OREANDA-NEWS. July 29, 2010. DTEK, Ukraine’s leading private sector fuel and energy company, today announces its performance results for the first half of 2010. According to these results, DTEK has consolidated its position as the leading company in Ukraine’s coal and power sectors.
 
DTEK’s share in the total amount of Ukraine’s coal production during the first half stood at 26.3%; 49% of the thermal generation market and 8% of the electricity distribution market.
 
Coal mining and processing
 
Between January and June 2010, DTEK produced 9.7m tonnes of coal, a 13.4% year-on-year increase. Within this, thermal coal mining grew by 23% to 8.6 m tonnes.
 
This increase in production is attributable largely to the implementation of DTEK’s large-scale investment programmes during the last few years and the development and application of innovative new equipment at its mines.
 
For example, Stepnaya mine (Pavlogradugol, DTEK) continues to introduce plough units manufactured by Bucyrus DBT Europe GmbH, which enables the mine to deliver a daily output of approximately 3,500 tonnes of coal, an increase of between two and three times over historic levels, which were produced through its use of shearers. 
 
In the first half the amount of ROM coal processing increased by 3.1%, though this has been offset to a degree by a reduction of 4.2% in the concentrate production at DTEK’s enrichment plants. This reduction is due principally to changes in the qualitative content of ROM coal.
 
Several investment projects were implemented at the Company’s enrichment plants during the first half, including upgrading of the water-sludge scheme at Oktyabrskaya CEP, installing new centrifuges at Dobropolskaya CEP, and the major refurbishment and reconstruction of buildings at Dobropolskaya CEP and Pavlogradskaya CEP.
 
 
Electricity generation
 
Based on the results for the period, Vostokenergo has maintained its leading position in the thermal generation market, with a share of 26.99%.  Electricity supplied to consumers during the period was 7.8 TWh, 22.4% more than in the first six months of 2009. The programme of repairs reconstruction of DTEK’s power units, successfully implemented in 2009, enabled the Company to increase its electricity output and ensured high levels of capacity and reliability of Vostokenergo’s operational infrastructure. In particular, Luganskaya TPP has the highest Installed Capacity Utilization Rate (ICUR) for 200MW units in Ukraine (87%) and Zuevskaya TPP for 300 MW units (65%). Vostokenergo’s ICUR remains the highest among Ukrainian TPPs at 48.5%.
 
In 2010, the Company continued the second stage of power equipment upgrading. Works at Unit 1 of Zuevskaya TPP have been completed, with its capacity increased from 300 MW to 325 MW, while at the same time its specific fuel consumption has been reduced by 3%. The upgrading of Unit 7 at Kurakhovskaya TPP and Unit 10 at Luganskaya TPP continues.
 
The Company has commenced implementation of the third stage of the reconstruction of its power equipment, which will include Unit 4 at Zuevskaya TPP; Unit 8 at Kurakhovskaya TPP; and Unit 13 at Luganskaya TPP.                                         
 
During the first half, Dneproenergo’s thermal generation market share reached 21.9% with a total supply of 6.3 TWh of electricity to the wholesale market, exceeding 2009 results for the same period by 20.6%. Dneproenergo’s ICUR was 19.5%, which is 3.2% more than in in the first half of 2009.
 
In 2010, DTEK’s planned reconstruction works on Unit 9, Pridneprovskaya TPP and Unit 3, Krivorozhskaya TPP continued. They are to be finished in December 2011. The reconstruction will extend the service life of the equipment by 15-20 years, improve firing and slag yield, meaning that residual dust content will not exceed 50 mg/m3 – in line with European [Union] standards. It also plans to raise the installed capacity of Unit 3, Krivorozhskaya TPP, from 282 MW to 300 MW.
 
 
Electricity distribution
 
In the first half, DTEK’s power supplying companies, Service-Invest and Energougol ENE, increased their purchase from the WEM by 19.4% (to 6.6 TWh). During the reporting period, DTEK companies’ share of purchasing from the WEM hit a record of 8.0%.
 
At the beginning of the year, Service-Invest began the implementation of several large-scale investment projects, including the reconstruction of Donetskaya 110kV substation; Chulkovka, Ugledar and Druzhkovka 110 kV substations; 12km-long power lines 35 kV Amvrosievka 330 Metallist; and the replacement of line transformers at Styla 110 kV substation.
 
Energougol ENE is currently implementing the Tochmash PS – RP Stratonavts cable line capital construction project. These projects will enable DTEK to improve the reliability of power supplies to industrial consumers and adjacent licensees.


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 2009 performance results, the Company’s share in the Ukrainian coal mining industry was 24.4%.
 
The generation business of DTEK is represented by Vostokenergo and the associated Dneproenergo Company, in which DTEK owns 47.5%. According to 2009 performance results, the share of Vostokenergo and Dneproenergo in thermal generation of Ukraine was 25.3% and 20.5% respectively.
 
Service-Invest and Energougol ENE represent the electricity distribution business of DTEK. Their share of electricity purchase in SE Energorynok in 2009 made 7.7%.