OREANDA-NEWS. August 22, 2011. DTEK reports its operating results for H1 2011.
 
Coal production and processing
 
In January–June 2011, coal output of DTEK enterprises amounted to 11.4 mln tonnes, which is a 17.7% increase year on year.
 
In H1 2011 DTEK Pavlogradugol produced 7.8 mln tones and DTEK Mine Komsomolets Donbassa mined over 2 mln tones of coal. The coal output increased due to upgrades of breakage and winning equipment, efficient work arrangement, application of high-tech coal-mining technologies as well as education and advanced training of employees. Labour productivity at Komsomolets Donbassa was 90 tonnes per person, which is one of the highest indicators in the industry. Coal production also grew because of a new coal asset, DTEK Dobropolyeugol with a mine of 1.6 mln tones in H1 2011.
 
ROM coal processing has gone up by 1.8% YoY to 6.2 mln tones through increased performance of processing plants. In addition, concentrate output has grown by 0.8% to 3.9 mln tonnes. The volume of ROM processing and concentrate production went down in Q2 2011 because of better quality of produced coal. 
 
In H1 2011 DTEK invested around UAH 0.7bn (UAH 558 mln in Pavlogradugol and UAH 101 mln in Mine Komsomolets Donbassa) in its coal mining and processing enterprises. At the mines of Dobropolyeugol coal group DTEK launched an extensive investment program, which expects to allocate about UAH 400 mln in modernization of the production facilities.
 
Electricity generation
 
In H1 2011 Vostokenergo generating company has supplied 8.9 billion kWh - increase by 13.5% year on year. Dneproenergo supplied 7.8 billion kWh of electricity, showing an increase of 22.7% year on year. Continuous coal deliveries, quality repairs in 2010 and completed reconstruction projects at power generating units ensure stable and high competitiveness of Vostokenergo and Dneproenergo. Capacity utilization rate (CUR) at Vostokenergo remains the highest among Ukrainian thermal power plants (54.2%). CUR at Dneproenergo in H1 2011 was 23.8%, which is 4.3% higher year on year.
 
In H1 2011 Vostokenergo and Dneproenergo continued to retrofit power units. Modernization of power unit 10 at Luganskaya TPP and power unit 8 at Kurakhovskaya TPP (Vostokenergo) is underway. The upgrade includes introduction of an integrated automated control system and reconstruction of the electric filter in power unit 8 at Kurakhovskaya TPP to achieve emissions of 50mg/m3 in line with Directive 2001/80/ЕС. Expected cost of modernization project amounts to UAH 536 mln for power unit 8 of Kurakhovskaya TPP and UAH 480 mln for power unit 10 at Luganskaya TPP.
 
Technical retrofitting of power unit 3 of Krivorozhskaya TPP and power unit 9 of Pridneprovskaya TPP continues. Modernization of power unit 1 of Zaporozhskaya TPP of Dneproenergo started. The reconstruction will increase the installed power capacity at Krivorozhskaya TPP by 18 MW, extend the operating life of main production equipment by 15-20 years and reduce dust emissions to 50 mg/m3 as required by Directive 2001/80/ЕС. Investment in equipment upgrade at Dneproenergo will make UAH 1.35 billion (UAH 419.8 mln, UAH 355.7 mln and UAH 574.5 mln in Krivorozhskaya TPP, Pridneprovskaya TPP and Zaporozhskaya TPP respectively).
 
Electricity supply and transmission
 
In H1 2011, DTEK electricity supplying companies (Service Invest and DTEK Energougol ENE) increased purchases from the Wholesale Electricity Market by 7.1% to 7.0 TWh.
 
As a part of preparations for EURO 2012 Service Invest continues an extensive investment project focused on construction of a new power substation Airport. The facility will cost UAH 101.7 mln and supply power to a new air terminal. DTEK Energougol ENE continues reconstruction and capital construction of 0.4 Kv power transmission lines (the works planned in 2011 will cost UAH 8 mln).
 
Coal export and import transactions
 
In H1 2011 DTEK has exported 1.9 mln tonnes of coal, which almost tripled the performance over the same period last year. The significant increase of export operations resulted from continuous efforts of DTEK Trading to expand coal export, mostly to the CIS and Europe, and improve position of the company in those coal markets. At the same time, coal imports in H1 2011 dropped by 72% to 214,000 tonnes year on year. The reduction resulted, firstly, from the price hikes caused by higher coal demand in the Pacific Region as well as from lower coal demand in Ukraine because of higher electricity output by nuclear plants.
 
Electricity exports
 
In H1 2011 DTEK has exported 2.1 TWh, which is eight times as much as in the same period of 2010. The main factors of the growth are the increased electricity supplies to Europe and the launch of electricity supplies to Belarus and Moldova.
 
Profile
 
DTEK is the largest privately-owned vertically-integrated energy company in Ukraine, with efficient enterprises that mine and prepare coal as well as operate on electrical power generation and supply markets. The Company is the energy division of System Capital Management (SCM), one of Ukraine’s leading financial and industrial groups.
 
The coal business of DTEK is represented by DTEK Pavlogradugol (consisting of 10 coal mines), DTEK Dobropolyeugol (5 mines), DTEK Mine Komsomolets Donbassa and five coal preparation plants.
 
The power generation business of DTEK is represented by Vostokenergo and the associated companies Dneproenergo, where DTEK owns 47.55%, and Zapadenergo, where DTEK together with affiliate companies holds 25.06%.
 
Service-Invest, DTEK Energougol ENE and the associated Donetskoblenergo Company, where DTEK holds 30.6%, represent the electricity sales and supply business of DTEK.
 
DTEK also holds a 39.98% stake in Kievenergo, a company generating and supplying heat and electricity.