OREANDA-NEWS. November 08, 2010. DTEK, Ukraine’s leading fuel and energy company, today announces performance results for the third quarter of 2010.  Building on the strong results, DTEK has maintained its leading position in the Ukrainian coal and energy sectors.
 
The Company’s share in the total coal output in Ukraine reached 25.2%*, in power generation it is 25,8%, and in electricity purchase from Wholesale Electricity Market (WEM) it is 8.1%***.
 
Coal extraction and preparationd
 
In the third quarter, the coal produced by the Company’s mines reached 4.7m tonnes, a 7.3% year-on-year increase. Further, thermal coal mining grew considerably (by 17.6%) to deliver 4.2m tonnes. As a result, DTEK's share in Ukraine’s total coal extraction during the quarter was 25.2%. 
 
The increase in coal output at Pavlogradugol OJSC was delivered first by introduction of new and innovative mining equipment, including a plough manufactured by Bucyrus DBT Europe GmbH, highly productive Ostroj sets and TMachinery shearers.  Furthermore, several large-scale investment projects have been completed at Pavlogradugol’s mines, including: the replacement of the main fans at both Geroyev Kosmosa mine and Stepnaya mine; the purchase of five KSP-33 roadheaders and one GKPS roadheader; and the purchase of three surface tracks for Zapadno-Donbasskaya, Samarskaya and Blagodatnaya mines. DTEK also continues to upgrade the production capacity at Komsomolets Donbassa mine. During the quarter, it purchased belt conveyors, KSP-32, a roadheader and a 1K101U shearer.
 
Positive trends in the coal mining business resulted in coal processing volumes also rising  – production of concentrate increased by to 2.1m tonnes.
 
During the period, several large-scale investment projects were implemented at the Company’s coal processing businesses, including the commissioning of a conveyor gallery #8 at Pavlogradskaya Coal Preparation Plant, completion of the installation of new centrifuges at Dobropolskaya CPP and replacement of a jig at Kurakhovskaya CPP.
 
Electricity Generation
 
During the quarter, Vostokenergo, DTEK’s power generating  subsidiary, supplied 4 TWh to the WEM, a 6.2% year on year increase. Electricity consumption in Ukraine grew by 6.8% between July and September, principally due to the steady high temperatures. This resulted in Vostokenergo growing its share in the total output of electricity to 13,0%. Vostokenergo also showed Installed Capacity Utilization Rate (ICUR) of 48.4%, which is the highest among its peers.
 
Vostokenergo continued its active programme of repairs and upgrades. Between July and September, the ongoing repairs on unit 11 at Luganskaya TPP and unit 6 at Kurakhovskaya TPP, together with the partial repairs of unit 8 at Kurakhovskaya TPP and unit 9 at Luganskaya TPP were completed.
 
The interim repairs on Unit 4 at Zuevskaya TPP began on 2 September 2010. In addition, DTEK is continuing its programme of full-scale equipment reconstruction at many of its facilities, including the reconstruction of unit 7 at Kurakhovskaya TPP. DTEK continues the second and third stages of the reconstruction programme (comprising unit 4 at Zuevskaya TPP; units 10 and 13 at Luganskaya TPP; and unit 8 at Kurakhovskaya TPP).
 
Dniproenergo , another power generating asset of DTEK, supplied 3.9 TWh of electricity during the period; a 25% increase compared with the equivalent period last year. The company’s ICUR stood at 23.8% and Dniproenergo's total market share was 12,8% . 
 
During the quarter, Dniproenergo began reconstruction of unit 1 at Zaporozhskaya TPP, which will see a total investment of UAH426.7m (aprox USD54m). The technical upgrade of the unit includes the modernization of the boiler and turbine units, electric equipment, pulverizing systems, burners and auxiliary equipment. Continuing into 2011, Dniproenergo will also carry out the planned reconstruction of unit 9 at Pridneprovskya TPP and unit 3 at Krivorozhskaya TPP.

Electricity sales and supply
 
DTEK’s power supplying companies, Service-Invest and PES Energougol, increased electricity purchased on WEM by 7.6% to 3.2 TWh during the quarter. DTEK's share of energy purchased amounted to 8.1% in the reporting period.
 
Service-Invest continues to implement a set of investment projects, among which are the reconstruction of Donetskaya-110kV, Chulkovka-110kV, Ugledar-110kV and Druzhkovka-110kV sub-stations; Amvrosievka 330-Metallist transmission lines with the total length of 12 km; replacement of power transformers at Styla-110kV sub-station.
 
In July 2010, Service-Invest commenced the construction of the Airport-110kV sub-station. These works form part of the Donetsk Airport reconstruction project, which is one element of Ukraine’s preparation for the 2012 European Championship football tournament. PES Energougol continues work on the PS Tochmash – RP Stratonavtov cable line capital construction, as well as the reconstruction and capital construction of 0.4 kV overhead transmission lines.
  
* According to the Ministry of Coal Industry of Ukraine.
** According to Energorynok SE, taking 100% result of Dniproenergo into account. DTEK owns 47,55% stake in Dniproenergo
*** According to Energorynok SE
 
DTEK is the first and only private vertically integrated energy company in Ukraine. It is a part of the financial and industrial group System Capital Management (SCM). The enterprises of DTEK comprise an efficient operational chain from coal production (Pavlogradugol, Komsomolets Donbassa Mine) and preparation (five preparation plants), to electricity generation (Vostokenergo and affiliated company Dniproenrgo, where DTEK has 47.5% stake) and electricity sales and supply (Service-Invest, PES-Energougol).