Key production indicators of DTEK Group
| Indicators | meas. unit | 1Q 2017* | 1Q 2016 | Variance, (+/-) | Variance, (%) |
| Coal production | ths tonnes | 8 364,6 | 7 228,7 | +1 134,9 | +15,7 |
| Coal concentrate production | ths tonnes | 4 275,2 | 3 541,3 | +1 033,9 | +29,2 |
| including at third-party processing plants | ths tonnes | 404,9 | 80,6 | +324,3 | в 5 раз |
| Electricity generation (net output) | mln kWh | 10 074,4 | 9 803,3 | +271,1 | +2,8 |
| including DTEK RENEWABLES | mln kWh | 173,7 | 184,5 | -10,8 | -5,9 |
| Electricity transmission via networks | mln kWh | 11 980,2 | 12 126,1 | -145,9 | -1,2 |
| Electricity exports | mln kWh | 1 275,4 | 1 146,0 | +129,4 | +11,3 |
| Coal exports** | ths tonnes | 253,2 | 281,1 | -27,9 | -9,9 |
| Coal imports | ths tonnes | 184,5 | 0,0 | -184,5 | -1 |
| Gas imports | mcm | 3,0 | 0,0 | +3,0 | - |
| Natural gas production | mcm | 417,6 | 381,1 | +36,5 | +9,6 |
| Gas condensate production | ths tonnes | 14,3 | 12,5 | +1,8 | +14,4 |
*Since March 2017, the performance indicators of the assets located in the territories in Donetsk and Luhansk regions temporarily non-controlled by Ukraine have not been consolidated in the statements of DTEK Energy and DTEK Group due to the loss of control.
**Including trading operations outside Ukraine.
Including the Mine Office Obukhovskaya***
|
Indicators |
meas. unit |
1Q 2017 |
|
coal production |
ths tonnes |
609,4 |
|
coal concentrate production |
ths tonnes |
404,1 |
***The production indicators of the Mine Office Obukhovskaya have not been consolidated in the financial statements of DTEK Energy since 1 September 2016 as the company was transferred under direct control by DTEK strategic holding company. This transaction was carried out as part of the restructuring of the DTEK Energy's loan portfolio aimed at balancing the possibilities for the development of the enterprises and servicing of the loans.
DTEK Energy
Coal production and processing
In 1Q 2017, the Company's coal mines located in Ukraine produced 7.8 mln tonnes, which is by 13.6%, or 930.5 ths tonnes, more than in 1Q 2016. DTEK Energy's coal processing plants (CPPs) processed 5.4 mln tonnes of run-of-mine (ROM) coal and produced 3.5 mln tonnes of coal concentrate. Furthermore, third-party CPPs processed 0.7 mln tonnes and produced 0.4 mln tonnes of concentrate.
Main factors influencing the production performance:
- DTEK Pavlogradugol, DTEK Dobropolyeugol and Mine Bilozerska ALC increased the production of high-volatile steam coal grades by 13.8%, or 714.3 ths tonnes.
In general, in the reporting period, the output of high-volatile steam coal amounted to 5.9 mln tonnes, which is the company's 1Q output record. The miners of DTEK Pavlogradugol made a significant contribution to the coal production growth, as their productivity in the period from January to March 2017 was 111.1 tonnes per person per month.
- In January and February 2017, DTEK Rovenkyanthracite, DTEK Sverdlovanthracite and DTEK Mine Komsomolets Donbassa increased the production of anthracite and lean coal grades by 13.0%, or 216.2 mln, compared to the similar period of 2016.
In the reporting period, the above companies supplied over 1.1 mln tonnes of anthracite to the company's thermal power plants, which is down 0.2 mln tonnes y-o-y.
Since March 2017, the company has had no control over DTEK Sverdlovanthracite LLC, DTEK Rovenkyanthracite LLC, DTEK Mine Komsomolets Donbassa PrJSC and Mospino CPE LLC, which is related to the unacceptable demand to re-register the above companies in the territories in Donetsk and Luhansk regions temporarily non-controlled by the Ukrainian authorities. At the time of the loss of control the above companies had the total stocks of 655 ths tonnes of coal and saleable coal products. In case of illegal use and sale of its anthracite, the Company will apply to the law enforcement bodies, courts and international organisations to take the respective measures against the violators and initiate Ukrainian and international sanctions.
Key projects in progress in the reporting period:
- The Yuvileina mine continues the construction of a ventilation shaft. The constructed substation supplies power to new mine workings, which greatly improves the quality of power supply to new longwalls. It will also ensure the uninterrupted operation of machinery and equipment in future underground faces. The air shaft provides the mine with the amount of air sufficient for its sustainable operation.
- Design works continue for the construction of a filter press section at the Dobropilska Coal Enrichment Plant. The application of belt filter press systems is widely spread in global practice as it does not require the storage of liquid waste and allows switching to the closed water-sludge cycle. Filter presses produce two products: clean water and solid waste.
- We continue the implementation of the project on the replacement of main fans at the Dniprovska Mine to ensure stable ventilation in the mine workings.
Electricity generation
In 1Q 2017, the Company's thermal power plants (TPPs) supplied about 10 bln kWh of electricity to the Ukrainian grid, which is 2.9%, or 281.8 mln kWh, more that in the similar period of 2016.
Main factors influencing the production performance:
- increased electricity consumption in Ukraine by 1.1%, or 467.3 mln kWh, with due account of process network losses;
- low availability of the other thermal generators due to insufficient anthracite stocks at their TPPs;
- an increase in electricity generation by 6.5%, or 438 mln kWh, at DTEK Dniproenergo, DTEK Zakhidenergo and Kyivenergo;
- a decrease in electricity generation by DTEK Skhidenergo by 4.3%, or 116 mln kWh, caused by the terminated control over the Zuivska TPP.
Late January 2017, the railway communications with the territories in Donetsk and Luhansk regions temporarily non-controlled by the Ukrainian authorities were blocked. This stopped supplies of anthracite from the Ukrainian mines in the anti-terrorist operation (ATO) zone and decreased the generation of electricity by TPPs operating on this coal grade. In particular, on 11 February, coal shipments stopped to DTEK Prydniprovska TPP and DTEK Kryvorizka TPP and on 5 March – to DTEK Luganska TPP. To accumulate an amount of coal sufficient for the production of electricity during the summer electricity consumption peak, DTEK Prydniprovska TPP and DTEK Kryvorizka TPP were shut-down after the end of the 2016/2017 heating period. The DTEK Luganska TPP is operating the must-run set of equipment and synchronised with the United Energy System of Ukraine.
Key projects in progress in the reporting period:
- We started a retrofit of generating unit 10 at the DTEK Burshtynska TPP. The unit's equipment – boiler drum and heating surfaces, turbine, rotor in the generator, transformer and electrical equipment – will be replaced. As a result, the installed capacity of the generating unit will increase by 15 MW to 210MW, and TPP's flexibility range will expand by 30 MW to 105MW.
- The second stage of the retrofit of unit 1 at the DTEK Kryvorizka TPP continues. We are planning to increase the unit capacity from 282 MW to 315 MW and expand its flexibility range to 125 MW.
Starting from 2012, the retrofit strategy of Company's generating units includes the upgrade of the unit electrostatic precipitators so as to achieve the dust emission levels required in accordance with Directive 2001/80/EC.
Power transmission over networks
In January-March 2017, DTEK’s distribution companies transmitted 12.0 bln kWh of electricity, which remains the same as in the previous year.
Main factors influencing the production performance:
- The industrial demand for electricity rose by 2.7%, or 331.8 bln kWh, while the demand of non-industrial consumers was up by 2.7%, or 525.1 bln kWh;
- an increase in the electricity transmission by DTEK Dniprooblenergo and Kyivenergo by 3.6%, or 298.7 mln kWh;
- a decrease in the electricity transmission by DTEK Donetskoblenergo, DTEK Power Grid, and DTEK Energougol ENE by 11.4%, or 444.6 mln kWh, due to the military hostilities. Yet, the electricity transmission by these companies grows by 5%, or 137.2 mln kWh, if we do not take into consideration the assets located in the ATO zone.
In March 2017, the Company lost control over the networks of DTEK Energougol ENE, DTEK Power Grid and DTEK Donetskoblenergo located in the temporarily non-controlled territories of Donetsk and Luhansk regions.
Key projects in progress in the reporting period:
- DTEK Donetskoblenergo: A contact centre was opened in Mariupol. It deploys modern CISCO IP telephony solutions. All calls - eitherfrom landline or mobile phones - are free. It is planned to extend the geographic coverage of the contact centre and provide consulting services to other towns of Donetsk region;
- The company continues retrofit of "Misto-5" substation, located in the centre of Mariupol. It is planned to install there a modern electrical module on the basis of D-12P cells with 10 kV vacuum switches.
- DTEK Dniprooblenergo: Construction of the 150/10/6kV "Naddniprianska" substation commenced. Additional capacity will enable connection of new consumers and enhance the reliability of power supply to existing and would-be substations powering the Dnipro metro system.
- Kyivenergo: Technical re-equipment of the 110/35/10 "Solomenska" substation started. The project aims at improving the reliability of the power supply and increasing the transmission capacity of the networks;
- The retrofit of the utility networks for the new airport terminal (Zhulyany, Kyiv) is underway. We have already constructed the 35 kV "Mykilska-Harnizonna" cable line and the 10 kV "Harnizonna-RP-267" cable line; later, we plan to carry out a technical upgrade of the "Mykilska" and "Harnizonna" substations;
Commercial activity
Coal supplies
In 1Q 2017, we supplied 253.2 ths tonnes of coal to foreign markets, which is down 9.9% y-o-y. We exported the coal produced by the Mine Office Obukhovskaya.
Coal supplies shrank due to reduced coal production by the Mine Office Obukhovskaya in 4Q 2016, which resulted in the lower coal stocks at the port terminals as of early 2017, and the need to increase shipments to Ukraine, including to DTEK Energy's TPPs. The Company supplied 71.4 ths tonnes of coal products to Ukrainian consumers, including the DTEK Luganska TPP, which enabled plant operations to continue after the suspension of anthracite supplies from the Ukrainian mines located in the ATO zone.
The coal supplies to Ukrainian industrial consumers grew by 35% to 542 ths tonnes due to higher demand of coke plants and steel works.
The Company imported 184.5 ths tonnes of coal, including the coal produced by the Mine Office Obukhovskaya, to ensure operation of its thermal power plants and supplies to the industrial consumers.
Electricity supplies
In January-March 2017, the company exported 1.3 bln kWh of electricity, which is up 11.3% y-o-y. The export supplies were mostly in January-February.
DTEK RENEWABLES
In 1Q 2017, the Botievo Wind Farm supplied 174 mln kWh of electricity to the Grid. The electricity supply was down by 5.9% y-o-y due to the lower wind speed in the reported period. The availability factor of the wind farm infrastructure was 99.93%, whereas the availability factor of the wind turbines was 98.95% (+1% over 1Q 2017). The indicators exceed the average world indicators applicable to on-shore wind farms, which is indicative of proper operation and high reliability of the wind turbines and infrastructure at the wind farm.
The company continues to develop its renewable energy projects. At the moment, they are conducting complex assessment of the environmental impact of the Primorsk wind farm project. The project envisages construction of a 200 MW wind farm in Zaporizhzhia region.
DTEK Oil&Gas
In January-March 2017, Naftogazvydobuvannya produced 417.6 bln cubic metres of natural gas and 41.3 ths tonnes of gas condensate, which exceeds the y-o-y indicators by 9.6% and 14.4%, respectively.
Main factors influencing the production performance:
- workover of well 51 at the Semyrenkivske gas condensate field completed;
- stimulation of producing wells performed.
Key projects in progress in the reporting period:
- start of drilling of well 34 (5,628 m deep) at the Semyrenkivske gas condensate field;
- continued retrofit of the gas processing plant at the Machukhske field.
