FY 2019

DTEK Energy Disclosure Call Presentation

DTEK Energy has disclosed un
audited consolidated financial information for the first quarter of 2020, ending on March 31, 2020. Financial indicators of the reporting period include the enterprises which are under operational management of the company.

“The systemic crisis in the energy sector of Ukraine that started in 2019 had a negative impact on the industry and business and affected the company's performance. Artificial restrictions of the electricity producers, manual regulation and interference in the energy market, along with the slowdown in the national industrial production, decrease in electricity consumption, and warm weather conditions, destabilized the entire energy system of Ukraine”, Dmitry Sakharuk, the CEO of the DTEK Energy noted.

The crisis in the energy sector of Ukraine had a material negative impact on DTEK Energy’s coal mining and thermal power generation operations. Consequently, the company has recorded net loss of UAH 7.5 bn in Q1 2020.

In first quarter 2020, DTEK Energy’s electricity thermal generation production remained constrained – the number of power units operating during the daytime and nighttime was reduced to 16 power units. In the first quarter of 2019, 27 power units were in operation during the day and 25 units were operating during the night.

Another negative factor was a sharp drop in prices on the electricity spot markets in Ukraine. From January to March 2020, the DAM price decreased by 30% due to the number of regulatory changes such as: decisions on PSO framework, Guaranteed Buyer bid price limitation and price setting methodology on the balancing market.

This led to a decrease in DTEK Energy’s generation output supplied to the United Energy System of Ukraine in first quarter 2020. First quarter of 2020 generation output amounted to 5.1 TWh, which is 37.8% less than first quarter of 2018. The company’s TPPs had 2.9 million tonnes of coal being stockpiled by April, which is 80% higher than in 2019.

Additionally, financial results were also negatively impacted by the weakening of the national currency due to the general global economic downturn caused by Covid-19.

Notes

(1)          2019 Annual Financial Report of DTEK Energy B.V. has been submitted by the Companies Announcement Service and available for inspection at: https://data.fca.org.uk/artefacts/NSM/Portal/NI-000005318.pdf

(2)          1Q 2020 Unaudited Consolidated Financial Information of DTEK Energy B.V is available for inspection at: https://www.dtek.com/en/investors_and_partners/disclosure/