DTEK Energy coal performance results for 9 months of 2015

In 9 months of 2015, DTEK Energy’s mining companies produced 21.4 million t of coal, – 25.6% less y/y. Processing plants showed similar results: ROM coal processing totalled 14.7 million t and concentrate production came in at 8.9 million t.

’The macroeconomic situation in Ukraine remains extremely difficult: the industrial production level is the lowest for the last several years and the economic situation always influences the energy sector’, stated Maxim Timchenko, DTEK CEO, commenting on the company performance results for 9 months of 2015. ’Artificial underpayments through the tariffs and billions of debts of Energorynok SC put additional pressure on thermal generation. As the result, miners were forced to scale down the tunnelling. If negative tendency prevails, high-volatile coal mining may significantly drop next year. DTEK, as before, makes every effort to ensure stable operation of the Unified Energy System of Ukraine. DTEK’s thermal power plants fired by high-volatile coal operate at a higher load. Due to the joint efforts of railway personnel and DTEK on restoring the railway infrastructure destroyed during the military combat, the anthracite supplies from Donbass have grown in Quarter 3. We hope that the supplies will remain regular. This will ensure the availability of Ukrainian anthracite coal not only on DTEK’ thermal power plants but on TPPs of other generating companies.’

The company reported high-volatile coal production saw a 1.6% increase by 261.2 thousand t. To stabilise electricity production in Ukraine, DTEK Pavlogradugol miners increased their labour productivity by 4.1% to 100.4 t per person per month.

Ynderfunding of the thermal energy sector decreases the financial stability of the coal industry was reported to, as a consequence, have reduced scope of tunnelling, as well as limiting opportunities for purchasing and repairing mining equipment.

Anthracite and lean coal production at DTEK Rovenkyanthracite, DTEK Sverdlovanthracite and DTEK Komsomolets Donbassa Mine saw a decline of 69.8% – 7.5 million t.

However, in July – September DTEK’s companies increased the production by 41.9% (429.3 thousand t) compared April – June, as a new logistic coal transportation route from the ATO zone had been opened.

Since the start of the year, the company’s coal supplies to external markets have decreased. Over 9 months 2015, the company has supplied 1 million t, which is down by 71.4% y/y.

Electricity generation

In 9 months of 2015, the fossil-fuelled power plants of the company reduced electricity supply by 20.8% to 27.7 billion kWh y/y.

Supply increase by 10.9%, or 1.2 billion kWh, at DTEK Zakhidenergo is reported to have influenced the production performance. The generating units firing high-volatile grades of coal have high technical availability, thus can bear higher load to reduce the capacity shortage and maintain stable operations of Ukrainian UES.

Another factor influencing production performance was a reduction in electricity supply by DTEK Skhidenergo and Myronivska TPP of DTEK Donetskoblenergo by 29.6% or 3.3 billion kWh in total.

A third influence on production performance was DTEK Dniproenergo’s supply reduction by 44.1%, or 5 billion kWh, due to the limited supply of low-volatile coal from DTEK mines operating in the ATO zone.

In total, coal stocks at DTEK TPPs increased by 33% in July through September, and by 1 October 2015 they reached 1.5 million t, which is almost the same y/y.In preparation for winter, the company continued overhauls of the main energy equipment of the thermal power plants. As of 30 September 2015, 39 generating units and facilities (turbines, boilers) have been repaired.

Read the article online at: https://www.worldcoal.com/coal/27112015/dtek-energy-coal-performance-results-for-9-months-of-2015-3216/