OREANDA-NEWS. June 02, 2011. Coal production and processing . In January–March 2011, coal output of DTEK enterprises amounted to 5.8 mln tonnes, which is an 8.2% increase YoY.
 
In the first quarter 2011 Komsomolets Donbassa Mine has broken its previous record. Furthermore, the Company boasts one of the highest labor productivity in the industry – 94.4 tonnes per person (Q1 2010 – 84.9 tonnes per person).
 
In the first quarter 2011 DTEK Pavlogradugol has raised in coal output up to 6,7% due to higher average load on the operating breakage faces, improved work arrangement and application of high-tech coal-mining technologies at the mines.
 
ROM coal processing has increased by 13.4% YoY to make 3.08 mln tonnes. Concentrate output has also increased by 9.8% to make 1.85 mln tonnes.
 
Electricity generation
 
In the first three months 2011 Vostokenergo generating company has supplied 5,067 mln kWh to the power market. It is an increase of 825 mln kWh or 19.5% YoY. It was possible to reach such results due to 4% growth of demand for electricity in the first quarter of 2011 YoY and the competitive ability improvement of the declared units, their availability for the load, and, as a result, demand for these units on the market. Electricity cost reduction was facilitated by the power unit retrofitting (year to date, Vostokenergo runs 4 upgraded power units) and timely repair campaigns on other units.
 
During the three months of this year TPPs of Dniproenergo supplied 4,246.9 mln kWh of electricity to the power market, showing increase of 575.7 mln kWh YoY. Productive electricity supply grew by 15.7 %.
 
Year to date, the company carried out scheduled repairs of 7 power units, repairs of 3 more power units are in progress. By the end of the year Dniproenergo plans to have repaired the total of 17 power units.
 
Electricity supply and transmission
 
In January–March 2011, DTEK electricity supplying companies (Service Invest and DTEK Energougol ENE) purchased 3.6 TWh from the Wholesale Electricity Market, which is 8% more, YoY.
 
Since the beginning of the year Service Invest has launched several large investment projects: construction of Airport-110/6 kV substation as a part of preparation to Euro 2012, construction of Yubileynaya-110 kV substation and 35 kV overhead transmission line for Yubileynaya mine (DTEK Pavlogradugol), retrofitting of 110 kV outdoor switch gear at Druzhkovka-110 kV and Davydovka-Severnaya-110 kV substations. Implementation of these projects, requiring the total amount of UAH178m, will improve reliability of electricity supply to industrial consumers and adjacent license holders.
 
Over the first three months of 2011 DTEK Energougol ENE has implemented the project on opening an e-shop for electricity retail sales to households. Furthermore, DTEK Energougol ENE has completed the construction of two 6 kV cable power transmission lines from Novo-Tsentralnaya substation to secure electricity supply for a future water park in Donetsk, which is intended to be built for EURO 2012.
 
Coal export and import transactions
 
In the first quarter 2011 DTEK has exported 784,400 tonnes of coal. In Q1 2010 coal exports amounted to about 30,000 tonnes on the back of high domestic demand. The export operations notable increase was resulted from systemic efforts of DTEK Trading to find new markets (Turkey, Bulgaria, Italy and others), to develop partnerships with Ukrainian coal mining companies and favourable market conditions. At the same time, coal imports over the three months of this year dropped by 41% to 196,000 tonnes YoY due to declined electricity exports and by nuclear and hydro power stations increased output.
 
Electricity exports
 
In the first quarter 2011 DTEK has exported 1,006.2 mln kWh of electricity, which is a YoY increase of 751 mln kWh. The main factors of the growth are increased electricity supplies to Europe by 322 mln kWh (to Slovakia and Hungary) and the launch of electricity supplies to Belarus in February 2011 to an amount of 416 mln kWh.
 
Profile

DTEK is the largest privately-owned vertically-integrated energy company in Ukraine, with efficient enterprises that mine and prepare coal as well as operate on electrical power generation and supply markets. The Company is the energy division of System Capital Management (SCM), one of Ukraine’s leading financial and industrial groups.
The coal business of DTEK includes DTEK Pavlogradugol (consisting of 10 coal mines), DTEK Dobropolyeugol (5 mines), DTEK Mine Komsomolets Donbassa and five coal preparation plants.
 
The power generation business of DTEK is represented by Eastenergo (Vostokenergo) and the associated companies Dneproenergo, where DTEK owns 47.55%, and Zapadenergo, where DTEK together with affiliate companies holds 25.06%.
 
Service-Invest, DTEK Energougol ENE and the associated Donetskoblenergo Company, where DTEK holds 30.6%, represent the electricity sales and supply business of DTEK.
 
DTEK also holds a 39.98% stake in Kievenergo, a company generating and supplying heat and electricity.
 
For more details, please, visit www.dtek.com
 

This document may contain forward-looking statements related to the planned measures or future financial indicators of DTEK. 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 the doing business in Ukraine, significant technological and environmental changes in our sector, as well as many other risks specifically applicable to DTEK and its business.