RCS - DTEK Finance Plc - DTEK Group Key Performance Indicators for 2019

Engie SAAnnouncement

05/03/2020 18:15

RNS Number : 2035F
  
DTEK Finance Plc
  
05 March 2020
  
 

PRESS RELEASE
DTEK Group Key Performance Indicators for 2019
Kyiv, 28 February 2020
In 2019, DTEK Group produced 24.5 mln tonnes of coal (-9.8% YoY) and 1,659.3 mcm of natural gas (+0.7%). 29.8 bn kW•h (-14.2%) of electricity was supplied to the United Energy System of Ukraine. 43.7 bn kW•h of electricity (-0.1%) was distributed to customers. End consumers on the domestic market received 38.6 bn kW•h of electricity.
"In 2019, our output of renewable electricity increased to record levels and now accounts for 5% of the DTEK Group's total supply. Our experience and expertise show that in the medium term, Ukrainian energy sector can successfully go through the process of replacing conventional with renewable generating capacity. In order to successfully accomplish such structural change, it is important to balance the economic sustainability of the energy system and the pace of decarbonization by developing a roadmap together with state in an open dialogue - said CEO of DTEK Maxim Timchenko, commenting the company's work in 2019. - Energy reform is an example of such dialogue being possible. Since July 1, 2019, all segments of the new electricity market have been operating, although there are regulatory restrictions that prevent the industry from becoming fully competitive and attractive for investment".
DTEK Group Key Performance Indicators




Indicators


UoM


12 mo. 2019


12 mo. 2018


Change (+/-)


Change (%)




Coal production


thous. tonnes


24,511.0


27,185.9


-2,674.9


-9.8




Including:


 


 


 


 


 




- Grade G, DG (Ukraine)


thous. tonnes


22,425.0


24,131.6


-1,706.6


-7.1




- Grade A (Mine Office Obukhovska)*


thous. tonnes


2,086.0


3,054.3


-968.3


-31.7




Coal concentrate production


thous. tonnes


10,621.6


12,355.5


-1,733.9


-14.0




Including:


 


 


 


 


 




- External CCM (Ukraine)


thous. tonnes


423.2


1,361.8


-938.6


-68.9




- Mine Office Obukhovska*


thous. tonnes


1,457.0


1,936.8


-479.8


-24.8




Electricity generation (supply)


mln kW•h


29,832.3


34,753.6


-4,921.3


-14.2




Including:


 


 


 


 


 




- TPPs and CHPPs


mln kW•h


28,435.3


34,076.6**


-5,641.3


-16.6




- WPPs and SPPs


mln kW•h


1,397.0


677.0


+720.0


+106.4




Electricity distribution


mln kW•h


43,654.0


43,684.8


-30.8


-0.1




Electricity supply to the domestic market


mln kW•h


38,568.8


43,684.8


-5,116.0


-11.7




Electricity supply to foreign markets


mln kW•h


5,829.7


5,825.6


+4.1


+0.1




Electricity import


mln kW•h


368.6


0


+368.6


+100.0




Coal export***


thous. tonnes


740.1


486.3


+253.8


+52.2




Coal import


thous. tonnes


1,893.6


2,662.6


-769.0


-28.9




Natural gas trading


Mcm


2,132.7


1,931.5


+201.2


+10.4




Natural gas production


Mcm


1,659.3


1,648.5


+10.8


+0.7




Gas condensate production


thous. tonnes


63.7


51.5


+12.2


+23.7




* From 1 September 2016, DTEK Energy has ceased consolidating the indicators of Mine Office Obukhovska into its statements as the Company's management has been transferred to Strategic Holding DTEK B.V. This transaction has been carried out as part of the restructuring of DTEK Energy's loan portfolio aimed at balancing the asset development capacity with the loan servicing capabilities.
** On 31 July 2018, the management contract of Kiev TPP-5 and TPP-6 was terminated. Their supply amounted to 1.6 billion kWh in 2018.
*** Including trading operations outside Ukraine.
 
DTEK Energy
Coal Production and Preparation
22.4 mln tonnes of gas coal were produced by DTEK Energy in 2019, which is 7.1%, or 1.7 mln tonnes, less than in 2018.
The company's internal and third-party coal processing plants have processed 15.7 mln tonnes of ROM coal; while coal concentrate production amounted to 9.2 mln tonnes. The share of raw coal processing and coal concentrate production by third-party plants reduced to 5.1% and 4.6% respectively due to the implementation of a comprehensive program to modernize internal coal processing plants.
Main factors driving performance indicators:
·   Coal production by DTEK Pavlovgradugol has been reduced by 9.0%, or 1,804.1 thousand tonnes. At the same time, the company maintains high labour productivity indicators of 109.0 tonnes per worker per month.
Key projects in 2019:
·   Upgrade of mining equipment: DTEK Pavlogradugol has added to its fleet of mining equipment: 6 cutter-loaders and 7 tunnelling machines. DTEK Dobropolyeugol purchased 3 tunnelling machines and 3 cutter-loaders. New equipment has better performance that ensures stable coal production in the context of downward trends in mining and geological environment.
·   Modernization of CPPs: DTEK Pavlogradskaya CPP has completed the reconstruction of the hydroclassification unit for coal sludge and screw separation waste. This will reduce the volume of waste and improve the ecological environment of the region. In general, the project will improve the closed water-sludge scheme of the enterprise, the implementation of which eliminated the use of a sludge collector. This made it possible to conduct advanced land re-cultivation for the placement of coal processing waste. Currently, land reclamation of 173 hectares is being conducted.
Kurakhivs'ka CPP has prepared the project documentation for a liquid waste processing and dehydration unit. The project is implemented within the framework of transition to a closed water-slurry circuit.
DTEK Oktyabrskaya CPP has received all the required equipment for developing project of processing grade 1-13 mm ROM coal in float-and-sink cyclone separators. Construction and installation works are scheduled for 2020.
Dobropils'ka CPP has completed the second phase of the construction of a rock waste dump that will suffice for keeping coal waste during 10 years. The company used a green dump technology helping to reduce an environmental footprint. In particular, it prevents the risk of self-combustion and eliminates any contact between coal waste and the environment.
 
Electricity Generation
DTEK Energy supplied 28.4 bn kW•h of electricity to the Ukrainian National Power Network, which is 16.6% or 5.6 bn kW•h lower YoY. At the same time, the decrease amounted to just 12.4% or 4,026.3 mln kW•h, excluding Kiev CHPP-5 and CHPP-6 which lease agreements terminated in 2018.  
Main factors driving performance indicators:
·   In Q4 2019, the company's enterprises cut down electricity generation by 39.9%, or 3.8 bn kW•h compared to the same period of 2018. This was caused by the electricity imports of 1.8 bn kW•h as well as lower domestic demand by 2.3 bn kW•h.
·   The lease agreement to manage Kyiv CHPP-5 and CHPP-6 expired on 31 July 2018 (1,615.0 mln kW•h was generated in 2018).
DTEK Energy has been implementing a comprehensive program aimed at increasing a share of Ukrainian G-grade coal in the energy mix of its power stations to minimize the use of anthracite. In 2019, the company has generated 25,826.5 mln kW•h from the G-grade coal. As a result, the share of electricity generation from anthracite in the total production was reduced down to 7.5%. At the same time, the share of electricity production from gas amounted to 1.6% due to the transition of DTEK Luganska TPP to the usage of this fuel. 
Key projects in 2019:
·   DTEK Prydniprovska TPP: power unit No. 10 was converted to use domestic G-grade coal. This is the fourth power unit that does not use anthracite. An electric precipitator was built on the power unit that helped reduce dust emissions down to 50 mg/m3, which is in line with European requirements.
·   DTEK Kryvorizka TPP: the re-equipment of power unit No. 1 to fire domes G-grade coal was completed. The re-equipped power unit was connected to the grid in October. 
Since 2008, the company's power units undergoing retrofitting have also been upgraded with electrostatic precipitators to comply with dust emission levels required by Directive 2001/80/EU.
·   Power unit No. 3 of DTEK Kryvorizka TPP, power units No. 1 and 2 of DTEK Zaporizka TPP, and power units No. 5, 7 and 10 of DTEK Burshtynska TPP have successfully passed the tests confirming the ability to comply with the ENTSO-E standards. 
·   DTEK Kurakhovskaya TPP has successfully tested the power units to obtain a certificate of compliance with the requirements of the auxiliary services market. A certificate on an ongoing basis is planned to be obtained in the first quarter of 2020. The opening of the ancillary services market was made possible through the implementation of energy reform. These services are one of the key tools of the Transmission System Operator to ensure the quality of electricity and reliable operation of the Ukrainian National Power Network.
 
DTEK RENEWABLES
Renewable Energy
In 2019, 1.4 bn kW∙h of electricity was supplied to the Ukrainian National Power Network which is 106.4% higher YoY.
Main factors driving performance indicators:
·   2 solar and 3 wind power plants with the aggregate capacity of 740 MW were commissioned. New power plants supplied 777.5 mln kW∙h of green energy to the Ukrainian National Power Network of Ukraine in 2019: Nikopolska SPP - 282.6 mln kW∙h, Pokrovska SPP - 47.8 mln kW∙h, Primorskaya Wind Farm - 360.3 mln kW∙h, and Orlovska WPP - 86.7 mln kW∙h.
·   Tryfonivska SPP supplied 12.4 mln kW∙h of green energy to the Ukrainian National Power Network meeting the plant's target indicators.
·   Botievo Wind Farm generated 607.2 mln kW∙h of green energy, which is 8.6% lower YoY, due to restrictions imposed during repair and maintenance work, and also by UES operator. The availability indicators of wind turbines and infrastructure remain high, and conform to the wind farms best global standards of 98.02% and 99.64% accordingly.
Key projects in 2019:
·   Nikopolska SPP (installed inverter capacity of 200 MW). The plant has been operating in the Ukrainian UES since March 1st. Nikopolska SPP expected to generate 290 mln kW∙h of green energy on an annual basis and will help reduce CO2 emissions by 308 th tonnes per year.
·   Primorska Wind Farm (installed capacity of 200 MW). The construction project comprised of two phases, and 26 GE wind turbine generators were installed during each phase. The plant help to avoid 700-750 th tonnes of CO2 emissions annually.
·   Orlovka WPP (installed capacity of 100 MW). The wind farm operates 26 Vestas wind turbines that will generate up to 380 mln kW∙h of green energy each year and will help to avoid more than 400 mln tonnes of CO2 emissions annually.
·   Pokrovska SPP (installed inverter capacity of 240 MW). The solar power plant comprises 874 th panels manufactured by Risen Energy (China) installed on the site of a depleted manganese quarry. The plant will help to avoid 420 th tonnes CO2 emissions annually.
·   In line with the long-term development strategy implementation, which targets 2 GW projects portfolio in Ukraine, the company carries out a number of new projects development.
 
DTEK Oil & Gas
Production of Natural Gas and Gas Condensate
1,659.3 mln cubic meters of natural gas and 63.7 th tonnes of gas condensate were produced in 2019, which is 0.7% and 23.7% higher YoY accordingly.
Main factors driving performance indicators:
·   The drilling of four wells was finished at the Semyrenkivske Field: well No. 61 with the depth of 5,456 m and horizontal displacement of 380 m, well No. 43 with the depth of 5,605 m and horizontal displacement of 370 m; 5,420-meter-deep well No. 72 and 5,470-meter-deep well No. 75.
·   The drilling of 5,704 m deep well No. 53 was completed at the Machukhske Field.
·   The use of innovative technologies reduced drilling time by 3.5 months.
·   The overhaul of wells and implementation of measures aimed at intensifying production rates on the existing well stock have been ensured.
Key projects in 2019:
·    The drilling of three new deep wells (Nos. 72, 75, and 77) at the Semyrenkivske Field was undertaken.
·   A new drilling program at the Machukhske Field including the construction of wells Nos. 53, 54, and 55 has been implemented.
·   The construction of pipeline booster compressor stations and a nitrogen unit at the Semyrenkivske Field allowed increasing gas drawing and improving quality of commercial gas.
·   The purchase of the license to use the Svitankovo-Lohivske oil and gas site (Kharkiv Region). The company won the license at an open electronic auction organized by the State Service for Geology and Mineral Resources of Ukraine.
·   The company won a production sharing agreement concerning the Zinkovska site (Sumy and Poltava Regions) at the largest auction for PSA in Ukraine. The company intends to invest UAH 1.2 milliard in the exploration and development of this site.
 
DTEK Grids
Electricity Distribution and Grid Operation
DTEK Grids supplied 43.7 bn kW•h of electricity to their clients in 2019, which is on par with 2018.
Main factors driving performance indicators:
·  DTEK Dnipro Grids and DTEK Power Grids cut down electricity distribution by 23%, or 7 bn kW•h. This is due to a decrease number of customers, as the territories of licensed activities of enterprises were revised as part of the energy reform.
·   The acquisition of Odesaoblenergo and Kyivoblenergo, whose performance indicators have been consolidated since May 2019. The enterprises distributed 7.5 bn kW•h of electricity in May - December period.
Key projects in 2019:
·   DTEK Dnipro Grids: the cutting-edge Naddniprianska substation was constructed and commissioned in Dnipro, which has become one of the most modern energy facilities in Ukraine. The substation will supply electricity to 300 thousand downtown residents and two new underground stations.
·   DTEK Donetsk Grids: a project establishing Central Dispatch Center has been completed in Kramatorsk, it will improve the management of the energy infrastructure of Donetsk Region;
Technical re-equipment of the substation "City 2" was carried out, the work on the re-equipment of the substation "Dobropolye" is ongoing. These projects are aimed at improving the quality of electricity supply in Mariupol and Dobropillya.
·   DTEK Power Grids: technical re-equipment of the Novorayska substation was carried out, this improved the transit of electric power for the northern part of the Donetsk region and increased the reliability of power supply to Kramatorsk and Druzhkovka.
·   DTEK Kiev Grids: the preparation for the introduction of smart grid technology have begun in Kiev - telemechanic systems have been installed at more than 300 substations and distribution points. Innovative technologies are aimed at full management automation of the entire energy infrastructure, which increases the reliability and stability of power transmission.
Large-scale reconstruction of the Bortnichi and Volcano substations continues. This will create additional capacities for connecting new facilities and a base for modernizing the aeration station.
• Kievoblenergo: the reconstruction of substations "Irpen" and "Novye Petrovtsy" was completed, this increased the power reserve for connecting new infrastructure units.
The new service was launched - connection to power grids can be carried out online. Now, customers can leave the access request on the company's website, receive technical specifications, pay for services and track the status of work completion.
• Odesaoblenergo: the reconstruction of the Yubileynaya substation, which supplies energy to the historical centre of Odesa, has been completed.
The implementation of modern IT systems has begun: SCADA (grids monitoring and management system) and GIS (geographic informational system);
The new services for customer were launched: chat-bots on Facebook and Viber, in addition to Telegram.
 
D.Trading
Coal supply
Coal exports are performed by Mine Office Obukhovska: 740.1 th tonnes of coal were supplied in 2019, which is 52.2%, or 253.8 th tonnes higher YoY. At the same time coal supplies to the domestic market dropped down to 863.3 th tonnes (-43.0%, or -651.5 th tonnes) due to the lack of coal export quotas and termination of deliveries since 1 June 2019.
The company imported 1,893.6 th tonnes of coal in aggregate, including the coal from Colombia and South Africa, to enable the operation of thermal power plants and industrial consumers. Coal imports dropped by 28.9% or 769.0 th tonnes due to the implementation of the strategy to transfer generating capacities to the use of domestic G-grade coal. 
Ukrainian industrial consumers received 1,723.4 th tonnes of coal from local and imported resources.
Electricity supply to foreign and domestic markets
5.8 bn kW•h of electricity was exported in 2019 under foreign economic contracts, which is on par with last year. The electricity was exported to Hungary, Poland, and Moldova.
Ukraine switched to a new model of model the electricity market in 2019, according to which industrial non-residential consumers have to choose their own electricity supplier.
In 2019, our company supplied 20.1 bln kW•h of electricity to non‑residential end consumers including major industrial companies, distribution system operators, and traders.
Import and supply of natural gas on the domestic market
The company increased the sales of its own and third-party natural gas purchased on the domestic market up to 2,132.7 mln cubic meters (+10.4% or 201.2 mln cubic meters YoY) thanks to the growing sales to industrial and electricity sector enterprises.
 
YASNO
Electricity Supply
18.5 bn kW•h of electricity was supplied to consumers in 2019 by universal service suppliers operating under YASNO retail brand.
12 high-speed charging stations were installed at Kyiv - Odesa, Kyiv - Lviv, and Kyiv - Poltava motorways in 2019. The company now operates 23 charging stations in total.
D.Solutions has been operating as YASNO since November 2019. The brand has covers the following businesses: retail electricity supply - YASNO (Kyiv Energy Services, Dnipro Energy Services, and Donetsk Energy Services), energy efficiency solutions for households - YASNO Smart (formerly known as Smart WATT), a network of high-speed EV charging stations - YASNO Е-mobility (formerly known as STRUM), and rooftop solar panels, electricity storage systems, energy audit, energy services, and energy management - YASNO Efficiency.
Profile
DTEK is the largest private investor in Ukraine's energy sector.
DTEK Group produces coal and natural gas, generates electricity at thermal, solar and wind power plants, distributes electricity, supplies electricity to end consumers, provides energy efficient solutions and develops a network of EV charging stations.
In 2019, DTEK's capital investments totalled UAH 23 bn. Moreover, the company paid UAH 23.4 bn of taxes. DTEK employs 70 thousand people.
The company is 100% owned by SCM Limited. The ultimate beneficial owner is Rinat Akhmetov.
Corporate Communications Department, DTEK
Tel.: +38 (044) 581 45 35
E-mail: pr@dtek.com
www.dtek.com


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