In 2010, coal sales accounted for 39.6% (2009 – 31.4%) of the consolidated revenue, electricity wholesale revenue accounted for 32.4% (2009 - 37.3%), and electricity sales and supply accounted for 27.8% (2009 – 31.1%). The share of other sales did not exceed 0,2%.
In 2010 DTEK continued focusing on fiscal and operational discipline, with emphasis on ensuring that its facilities are best positioned to meet the demand.
Increasingly positive sentiment in the global markets provided a sound platform for DTEK to pursue a number of initiatives, including the successful launch of its inaugural Eurobond offering and the continuing progress of the Company’s major investment programme in its operational infrastructure.
Consolidated revenue for 2010 increased by 61.8% to USD 3,052 million compared with USD 1,886 million in 2009. The cost of sales went up by 52.1% to USD 2,379 million, resulting in a gross profit of USD 673 million, more than double vs 2009 (USD 322 million). Gross profit margin increased by 5% and made up 22.1% in 2010.
Strong revenue growth was driven by both power generation output and prices as well as coal production and export operations.
Cost of sales increase reflected increase in volumes and prices for coal purchased from the third parties for resale, increased cost of purchasing electricity by the distribution companies, and raw materials inflation.
Operating profit for the period was USD 543 million, more than doubled from USD 235 million in 2009, operating profit margin reached 17.8% (from 12.5% year ago), reflecting price improvements, favourable segments mix and the enhancements that DTEK continues to make to its operating efficiency.
Key drivers for that were coal trading, electricity export, favourable movement of coal and electricity generation prices, and is caused mainly by increase in the gross profit by USD 351million, partially offset by increase in operating costs by USD 37 million due to increase in staff costs for administrative personnel.
Net profit rose significantly compared with 2009 from USD 108 million to USD 359 million.
Net operating cashflow for the year was up 50.7% at USD 406 million from USD 270 million in 2009. Capital expenditure increased by 17.0% to USD 278 million from USD 238 million year earlier.
As of 31 December 2010, the Company’s total debt was USD 691 million, including current debt of USD 125 million (18.0% of total debt) and non-current debt of USD 566 million (82.0% of total debt). 82.6% of DTEK’s total debt was denominated in USD and 8.8% was denominated in EUR, 8.6% was in UAH. Net Debt to EBITDA ratio fall to 0.6 from 1.0 in 2009, Gross Debt to EBITDA ratio decreases as well from 1.2 to 0.9.
DTEK’s modernization programme continued in 2010 with a number of major achievements:
- The installed capacity of unit 1 at Zuevskaya TPP increased by 8% to 325 MW, flexibility range of the power unit increased to 35 MW;
- The installed capacity of unit 7 at Kurakhovskaya TPP increased by 7% to 225 MW, flexibility range of the power unit increased to 55 MW;
- The third stage of equipment reconstruction commenced at several units (Unit 4 at Zuevskaya TPP; Unit 8 at Kurakhovskaya TPP; and Unit 13 at Luganskaya TPP);
Dniproenergo’s ICUR increased by more than 6% y-o-y to 34.3%[6] due to increased readiness of the equipment after repairs done. Continued progress in the development of plans for a wind power project in Ukraine. Following the strategic assessment of the wind energy market in Ukraine in 2009-2010, DTEK plans to start construction of its first 200 MW wind farm in 2011.
DTEK significantly increased export volume of coal by 153% up to 1.962m tonnes. DTEK became the largest Ukrainian exporter of electricity to EU and Belarus. DTEK together with affiliate companies increased its stake in the power generating company Zakhidenergo, up to 24.9%. DTEK increased its stake in the power utility company Kyivenergo, up to 39,98%.
DTEK signs a 49-years lease agreement to rent state-owned coal mining company Dobropolyeugol. DTEK plans to invest up to USD 251 million into the mines of Dobropolyeugol during the next 5 years. The investments are expected to raise the company’s coal production from 2.8m to 5.2m tons per year by 2015.
DTEK’s Komsomolets Donbassa mine increased its recoverable coal reserves by 3.218 m tones. It was done based on the Ministry of Environmental Protection of Ukraine special permit no. 5278 of 11.01.2011 for the development of coalreservesof suspendedVinnitskaya mine.
At Stepnaya mine (Pavlogradugol), DTEK continues to introduce plough units manufactured by Bucyrus DBT Europe GmbH. These units enable the mine to deliver a daily output of approximately 3,000 tonnes of coal from a single longwall, an increase of between two and three times over historic levels, which were produced through its use of shearers.
Several investment projects were implemented at the Company’s coal preparation plants during 2010. They included upgrades to the water-sludge scheme at Oktyabrskaya CEP, installation of new centrifuges at Dobropolskaya CEP, and major refurbishment and reconstruction of buildings at Dobropolskaya CEP and Pavlogradskaya CEP.
The reconstruction of DTEK’s power units, completed in 2009/2010, has enabled the Company to increase its electricity output and has ensured high levels of capacity and the ongoing reliability of Eastenergo’s operational infrastructure. Zuevskaya TPP has the highest Installed Capacity Utilization Rate (ICUR) for 300MW units in Ukraine (65%). Eastenergo’s ICUR remains the highest among Ukrainian TPPs at 50.01%.
The Company also continued the second stage of its power equipment upgrades during the period. Works at Unit 1 of Zuevskaya TPP and Unit 7 at Kurakhovskaya TPP have been completed, with its capacity increased from 300 MW to 325 MW and from 210 MW to 225MW respectively, while at the same time its specific fuel consumption has been reduced by 3%. The upgrading of Unit 10 at Luganskaya TPP continues, with schedule to complete it in December 2011.
DTEK has also commenced implementation of the third stage of the reconstruction of its power equipment, which will include Unit 4 at Zuevskaya TPP; Unit 8 at Kurakhovskaya TPP; and Unit 13 at Luganskaya TPP.
The fourth stage of the reconstruction began at the end of 2010 with tendering procedure to choose subcontractors for reconstruction works (power unit 3, Zuevskaya TPP; power unit 6, Kurakhovskaya TPP and power unit 11, Luganskaya TPP).
The reconstruction works at Dniproenergo on Unit 9, Pridneprovskaya TPP and Unit 3, Krivorozhskaya TPP continued through the period. These are scheduled to be completed in September and December 2011 respectively. Also, reconstruction of Unit 1, Zaporozhskaya TPP is ongoing. The reconstruction will extend the service life of the equipment by 15-20 years and improve firing and slag yield, meaning that residual dust content will not exceed 50 mg/m3 – in line with the European Union standards. It also plans to raise the installed capacity of Unit 3, Krivorozhskaya TPP, from 282 MW to 300 MW.
At the beginning of the year, Service-Invest began the implementation of several large-scale investment projects including the reconstruction of the Donetskaya 110kV substation; Chulkovka, Ugledar(finished in December 2010) and Druzhkovka 110 kV substations; 12km-long power lines 35 kV Amvrosievka 330 Metallist; and the replacement of line transformers at Styla 110 kV substation(finished in December 2010).
PES Energougol finished implementation of the Tochmash PS – RP Stratonavts cable line capital construction project in the shift of the year. These projects will enable DTEK to improve the reliability of power supplies to industrial consumers and adjacent licensees.
In 2010 DTEK Trading, coal trading arm of DTEK,- traded coal in domestic and foreign markets. Its main consumers in Ukraine are Ukrainian power generating companies, the largest iron and steel works and other industrial companies. Last year DTEK Trading exported about 2m tonnes of coal, which is twice as much as in 2009 (764,000 tonnes). Coal was supplied to consumers in Turkey, Bulgaria, Poland, Romania, India, USA and Brazil. Furthermore, the enterprise imported 1.3m tonnes of coal to be consumed by DTEK’s TPPs.
Starting January 2010, DTEK supplies electricity to consumers in Hungary, Slovakia, Romania and Belarus through Eastenergo and its electricity trading arm, Power Trade. Last year the Company exported 1.21 TWh of electricity.
DTEK continues to develop its network of social partnerships. In 2010, DTEK collaborated within framework of the Social Partnership Programme with towns where the Company runs its business. 15 towns and 4 districts of Donetsk, Dnepropetrovsk, Zaporozhye and Lugansk regions of Ukraine became participants of the Programme. In 2010, DTEK invested USD 1.5m in the social-economic development of those areas.
In 2010, priority directions of DTEK’s social partnership were energy efficiency, education, health care and improvement of the local infrastructure. Key projects included improving energy efficiency of heating networks of Kurakhovo town in the Donetsk region (implemented with support of the USAID project “Municipal Heating Reform in Ukraine”) and equipping four medical care units in the Western Donbass.
20 Января 2025 | понедельник | 14:22
