OREANDA-NEWS. April 07, 2010. DTEK, Ukraine’s leading fuel and energy company, today announces its audited consolidated financial results for the full year ended 31 December, 2009.
 
Key financial highlights:

Consolidated revenue increased by 15.7% to UAH15.009 billion in 2009 (2008: UAH12.969 billion)
EBITDA improved by 3.3% to UAH3.566 billion (2008: UAH3.453 billion)
Profit before income tax went up significantly year-on-year to UAH1,175 million.
Net profit up substantially to UAH856m (2008: UAH119m) with net margin rising from 0.9% to 5.7%.

The main factors influencing the earnings before tax and net profits are:

reduced loss from net exchange rate differences from 1,195m in 2008 to 120m in 2009; this is due to the stable exchange rate of foreign currencies vs. UAH compared with 2008;
Lower loss and increased profit from the stakes in Dneproenergo and Donetskoblenergo respectively.
The operating cash flow was positive, although it declined by 26%, to UAH2 146m (2008: UAH2 892m). The reduction was the result of reduced output which, in turn, was the result of a fall in demand and lower prices for our product.
The capex was lower in 2009 compared with the previous year, a reduction of 20.7% UAH2 490m. The main reasons for this reduction in investment flow are reduced fixed assets purchases and other investments reflecting economic downturn.

Operational highlights:

Coal output amounted to 17.6 million tonnes, which is in line with result of 2008, maintaining DTEK’s place as Ukraine’s largest coal producer, with 24.4% of Ukraine’s total output
Continued progress made in the implementation of large-scale projects, including the introduction of new coal extraction machinery
Efficiency of equipment continued, reducing production ‘bottlenecks’ and resulting downtime
New equipment has enabled DTEK to increase its load on a breakage face by 1.5-2 times compared to previous average performance
‘DTEK Trading’ established, significantly strengthening the coal business, enabling DTEK to maintain sales of coal produced despite challenging market conditions
Maintained leadership of the Ukrainian power generation sector, with 45.8% market share[1]
Large scale modernization programme continued in 2009, including the following achievements at Kurakhovskaya and Zuevskaya TPPs:
Equipment service life of two units was prolonged by up to 15 years;
The installed capacity increased by 12 and 20 MW per unit respectively[2];
The flexibility range increased by 35 and 42 MW per unit respectively;
Specific consumption of fuel equivalent for electricity generation has reduced by 19% at some units
Innovative environmental protection programme continued, which furthers DTEK’s aim of operating within European Union emissions limits
DTEK’s total volume  of electricity purchase on the Ukrainian Wholesale Electricity Market in 2009 was 11.8 million kWh, a 7.3% increase on 2008
Network losses decreased further by 1.8% to record low levels2.

Post period end

Fitch Ratings upgraded its outlook on the long-term ratings of DTEK Holdings Limited from ‘Negative’ to ‘Stable’;
Moody's Investors Service confirmed the B2 long-term Corporate Family Rating of DTEK Holdings Limited;
DTEK was accepted by EURACOAL as its newest corporate ;
 
Commenting on the results, Maxim Timchenko, Chief Executive Officer of DTEK, said
 
“In the face of continuing economic challenges, DTEK has produced strong results for 2009. We made excellent progress in strengthening our market leading position in Ukraine’s energy sector and have continued to expand our operations to become one of the leading energy companies in Europe.
 
“Importantly, all three of our business segments contributed to this performance. We have maintained our leading positions in both the coal production and thermal generation markets and we continue to enhance our electricity transmission and supply business to boost electricity sales both domestically and abroad.
 
“I am particularly pleased to report that DTEK is now the first privately owned company in Ukraine to sell electricity internationally – one of the most important strands of our strategy and one that will enable us to grow and develop going forward.
 
“We believe that we have the skills and resources to build on the success of the business and to continue to work towards our goal of becoming one of the leading energy companies in Europe.”