DTEK Maintains Positive Trends in Production Performance in 2013
OREANDA-NEWS. In 2013, DTEK's companies produced 41.4 million tons of coal (+4.3% YoY), its thermal power plants supplied 53 bln kWh (+3.1% YoY), and its distribution companies purchased 59.7 bln kWh of electricity from the wholesale market (+10.8% YoY).
2013 was a challenging year for the electricity sector of Ukraine. Industrial production declined by 4.7% YoY. This resulted in industry's demand for electricity decreasing by 4.4 billion kWh. Total electricity consumption in Ukraine went down by 3.4 bln kWh, leaving the coal market with a surplus of coal.
“DTEK did everything possible to maintain a normal mode of operations. In 2013, DTEK concentrated on improving the efficiency of production, investments, and governance. The 2103 results showed an improvement in performance through vertical integration and the inclusion of the indicators from new assets acquired in 2Q and 3Q 2012. The increase in electricity generation and coal mining contributed to the increase in export sales. We invested more than UAH 10 billion to update production facilities, which also helped us to keep them efficient in the difficult market conditions,” said Maxim Timchenko, DTEK's CEO, commenting on the company's performance in 2013.
In 2013, DTEK launched the Novator project, a continuous improvement system that will help increase efficiency by continuously streamlining processes, reducing losses, and improving the quality of products. Last year, the financial effect of the Novator project amounted to UAH 120 million, and we expect it to increase to UAH 400 million in 2014.