DTEK Energy Audited Consolidated Financial Performance Indicators for 2017
Key Financial Performance Indicators for the Reporting Period:
Revenues – UAH 141,738 million
Net loss – UAH 2,916 million
Capital investments – UAH 8,416 million
Tax paid – UAH 16,952 million
Kyiv, 27 April 2018
DTEK Energy disclosed audited consolidated financial statements for 12 months of 2017 that ended on 31 December 2017.
“The main challenge faced by the company in 2017 was the termination of control over its undertakings located behind the demarcation line. We focused on increasing the production of steam coal. As a result, the company was able to launch a program for replacing anthracite coal with these coal grades in energy productions, and thus increase the load on TPP capacities,” noted DTEK Energy’s CEO Dmitrii Sakharuk. “We plan to continue our efforts aimed at the reduction of the share of imported energy resources in the company’s fuel portfolio in 2018. Another two generating units of DTEK Prydniprovska TPP will be converted to firing domestic coal. Miners will support energy workers, and we expect that the production of grade G coal will increase by 7% and will hit 24 million tons. I can say with confidence that these projects will foster energy security of Ukraine.”
The net loss of DTEK Energy for 2017 was UAH 2.9 billion. The company’s financial performance indicators remain affected by the loss of assets located on the temporary occupied regions in the Donetsk and Luhansk Oblasts. The aggregate loss resulting from the write-off and impairment of assets and from the restructuring of obligations totaled UAH 4.4 billion.
The absolute production costs increased by 8% (UAH 9.2 billion) compared to 2016. This increase was caused by rising technology fuel, equipment, and consumables prices.
In 2017, the company paid UAH 17 billion of state and local taxes, which is 29.8%, or UAH 3.9 billion, higher YoY.
The company’s capital investments grew by 37.2% (UAH 2.3 billion) YoY and reached UAH 8.4 billion. By increasing capital investments, the company was able to boost the production of steam coal and convert two energy generating units to use this coal grade instead of anthracite. Considering that energy production is a capital-intensive industry on a global scale, and this is specifically a case in Ukraine due to heavy wear of capacities, the company plans to continue increasing its capital investments. Capital expenditures will be channeled to maintain production volumes, upgrade production facilities, and continue the implementation of the program for the conversion of energy generating units from anthracite to steam coal grades.
DТEK is a strategic holding company that develops business in the energy sector. DTEK’s companies employ 73 thousand people. DTEK CEO is Maksym Timchenko.
DTEK companies produce coal and natural gas, generate electric power at the fossil-fuel fired power plants and renewable energy power plants, supply thermal and electric power to end consumers, and provide energy services. The operating companies directly manage production companies in each of the business streams.
DTEK’s production indicators for 2017: the company has produced 27.7 million tons of coal, 1,655 bcm of natural gas, generated (supplied) 37.1 billion kWh of electric power, of which 637.8 million kWh have been provided by the renewable energy sources; and transmitted 43.2 billion kWh of electric power via the grid.
DTEK is a part of System Capital Management (SCM) financial and industrial group. The shareholder of the group is Rinat Akhmetov.
For more information, visit: www.dtek.com
To learn about social partnership projects being implemented in the cities of DTEK activity, and to get a detailed report on the status of their implementation, please visit http://spp-dtek.com.ua/.
For more information, please contact:
Tel: +38 (044) 581 45 22
This press release may contain forward-looking statements related to the planned measures or future financial indicators of DTEK ENERGY. Words such as ‘anticipate’, ‘believe’, ‘estimate’, ‘expect’, ‘forecast’, ‘intend’, ‘may’, ‘plan’, ‘project’, ‘predict’, ‘should’ and ‘will’ or the negatives of these terms or variations of them and similar expressions are intended to identify such forward-looking statements. Accordingly, actual results may differ materially from those expressed or implied by the forward-looking statements. We undertake no obligation and do not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. By their nature, forward-looking statements are subject to numerous assumptions, risks and uncertainties. Such risks include concerns over the general economic status, environment and risks associated with doing business in Ukraine, significant technological and environmental changes in our sector, as well as many other risks specifically applicable to DTEK ENERGY and its business.