Press release

Kiev

 

Coal production and enrichment

Coal output at the Company enterprises Pavlogradugol and Komsomolets Donbassa Mine accounted for 17.6 million tonnes, which is 0.2% higher year on year. This put DTEK on the leading position with a market share of 24.4%.*

DTEK coal mining businesses proceed with an extensive investment programme. Late in December, Stepnaya Mine of Pavlogradugol launched a plough system by Bucyrus DBT Europe GmbH (Germany). The plough system is expected to produce daily about 3,500 tonnes of coal, while the shearer facility mines only 1,000-1,500 tonnes. Mine degasification and methane recovery project implemented at Komsomolets Donbassa Mine in 2009 launched recovery units and helped sell 300,000 ERUs under Kyoto Protocol.

ROM coal enrichment remained practically unchanged as compared to the previous year and made 11.6 million tonnes (-0.9%) with a slight reduction in concentrate output (-5.4%) due to the change in coal fraction composition and ash content.

 

Electricity generation

DTEK electricity generation division comprises Vostokenergo and associated company Dneproenergo**.

Based on the results of 2009, Vostokenergo (DTEK) takes the leading position in the thermal generation segment with a share of 25.2%***. In 2009 Vostokenergo electricity supply made 15.4 billion kWh, which is 13.6% lower than in 2008. In 2009 Dneproenergo supplied 11.8 billion kWh, which is 19.9% lower compared to 2008. The Company's thermal generation share made 20.5%, which was a drop by 1.8% compared to the previous period***. Reduced supply results from lower electricity consumption in 2009 caused by production slowdown in Ukraine. However, as soon as in Q4 2009 a positive trend came into view: Vostokenergo electricity supply grew by 11.1%, while with Dneproenergo the figure was 19.6% year on year.

Vostokenergo (DTEK) remains the most demanded thermal generating company at the Ukrainian energy market owing to low production cost of electricity. Vostokenergo still keeps the highest capacity ratio among Ukrainian TPPs (44.7%). 

In 2009, the company implemented the second stage of modernization, which covered power units No 1, No 7 and No 10 of Zuyevskaya, Kurakhovskaya and Luganskaya TPPs respectively. On 18 December 2009, Zuevskaya TPP triggered power unit No 1 and commenced start-up tests. The reconstruction is expected to give the following results: increased capacity ratio of the power unit by 20 MW, wider flexibility range from 130 to 175 MW, lower specific consumption of fuel equivalent by 2.3%, lower air polluting emissions by 50%. Power units No 7 and No 10 of Kurakhovskaya and Luganskaya TPPs respectively are subject to similar reconstructions. Reconstruction of power units at Kurakhovskaya and Luganskaya TPPs will last throughout 2010.

In 2009 Dneproenergo repaired and maintained 18 power units with a total capacity of 5,809 MW. Power units No 9 and No 3 of Pridneprovskaya and Krivorozhskaya TPPs respectively are under reconstruction. Repair works primarily target to enhance safety, ensure operational reliability of equipment and reduce harmful emissions.

 

Energy distribution

Given lower volumes of commodity electricity supplied to the market in Ukraine, in 2009 DTEK energy supplying companies showed an increased share of purchase in electricity wholesale market (by 1.2%) compared to 2008, which made 7.7% *** from the total commodity electricity supplied to the market in Ukraine. In 2009 purchases in Ukrainian WEM made UAH 11.8 million KWh, which is 7.3 % more than in 2008. In Q4 2009, this indicator grew by around 35%. Such supply volumes were achieved through increased electricity consumption by mining and metals business.

Over 2009, DTEK energy supplying companies delivered a number of big investment projects, including construction of Budyonovskaya substation in Donetsk (PES-Energougol), switching Rutchenkovo substation (Vozrozhdenie) to 110kW, laying cable high-voltage lines, as well as reconstruction of KhSKPZ-1 substation (Service-Invest).

* According to the Ministry of Coal Industry of Ukraine

** DTEK has a share of 47.5%.

*** According to state-run enterprise Energorynok

 

 Key production indicators for 2009

(compared to 2008)

 

Indicators	Unit	2009	2008	Change (+/-)	Change (%)
Coal production	'000 tonnes	17,635.8	17,594.6	41.2	0.2
including:
Steam coal	'000 tonnes	14,618.1	14,539.0	79.1	0.5
Coking coal	'000 tonnes	3,017.7	3,055.6	-37.9	-1.2
Coal enrichment:
Run-of-mine coal enrichment	'000 tonnes	11,626.3	11,729.3	-103.0	-0.9
Concentrate output	'000 tonnes	7,914.9	8,366.7	-451.8	-5.4
Electricity generation
Vostokenergo electricity supply	m kWh	14,504.7	16,788.8	-2,284.1	-13.6
Dneproenergo electricity supply	m kWh	11,788.6	14,725.9	-2,937.3	-19.9
Electricity transmission
WEM share	m kWh	11,802.1	10,997.2	804.8	7.3

 

 

Key production indicators over Q4 2009

(compared year on year)

 

Indicators	Unit	2009	2008	Change (+/-)	Change (%)
Coal production	'000 tonnes	4,729.3	4,406.3	323.0	7.3
including:
Steam coal	'000 tonnes	4,050.9	3,984.2	66.7	1.7
Coking coal	'000 tonnes	678.4	422.1	256.3	60.7
Coal enrichment:
Run-of-mine coal enrichment	'000 tonnes	2,825.2	2,936.0	-110.8	-3.8
Concentrate output	'000 tonnes	1,805.9	2,043.2	-237.3	-11.6
Electricity generation
Vostokenergo electricity supply	m kWh	4,348.3	3,914.8	433.5	11.1
Dneproenergo electricity supply	m kWh	3,382.0	2,827.2	554.8	19.6
Electricity transmission
WEM share	m kWh	3,308.5	2,451.2	857.3	35.0

 

 

Profile

 

DTEK is the first private vertically-integrated power company in Ukraine. It belongs to the financial and industrial group System Capital Management (SCM). DTEK enterprises form an efficient chain of coal mining and enrichment, electricity generation and distribution.

The coal division of DTEK includes Pavlogradugol (runs 10 mines), Komsomolets Donbassa Mine and five enrichment plants.  In 2009, the DTEK's sales accounted for 24.4% of Ukraine's coal mining industry.

The generation division comprises Vostokenergo and associated company Dnerpoenergo, of which DTEK owns 47.5%. In 2009, the share of these businesses in Ukraine's thermal generation made: Vostokenergo – 25.2%, Dneproenergo – 20.5%.

DTEK’s Service-Invest and PES-Energougol represent the electricity distribution division. Their purchase share in the state-run enterprise Energorynok made 7.7% in 2009.

For more information, please visit: www.dtek.com

Corporate Communications Department

DTEK

Tel.: +38 (044) 581 45 37

+38 (044) 581 45 55

E-mail: pr@dtek.com

www.dtek.com