In January-February, DTEK lost UAH 1 billion in profit due to underproduction of electricity due to the coal shortage, Head of the Verkhovna Rada Committee on Energy and Housing and Utility Services Andriy Gerus (Servant of the People faction) said.
According to the MP, out of 777 million kWh of total electricity imports to Ukraine in January-February, DTEK could independently generate at least 500 million kWh, which required 250,000 tonnes of coal.
“Taking into account the premium electricity prices in January-February, this means a profit of at least UAH 250 million. However, this profit was not earned due to the coal shortage,” Gerus said.
In January-February, DTEK actually suspended exports of electricity to the EU, which meant an underproduction of another 800 million kWh (for which 400,000 tonnes of coal were needed), and it is a shortfall of about another UAH 800 million, Gerus said.
“Thus, in order to produce the necessary electricity for the needs of Ukraine and for export, DTEK needed 650,000 tonnes of coal. We remind you that the company’s accounts in December had UAH 1.6 billion, which is the equivalent 800,000 tonnes of coal. In fact, the company lost about UAH 1 billion in profit, which it could have received in January-February, the market provided such opportunities,” the head of the parliamentary committee said.
As reported, the National Commission on State Regulation in Energy and Utilities (NEURC) at a meeting on March 10 fined DTEK Zakhidenergo, DTEK Dniproenergo and DTEK Skhidenergo for UAH 1.7 million each for failure to provide the guaranteed coal reserves at thermal power plants (TPPs) in winter, as well as untimely informing the Energy Ministry, NEURC and NPC Ukrenergo about a critical situation with fuel.
DTEK Renewables and the Danish company for the production of wind turbines Vestas have signed a contract for the construction of phase one of DTEK Tiligulska wind power plant (Mykolaiv region) with a capacity of 126 MW.
According to a press release from DTEK, Financing for the first stage will be drawn from funds raised by DTEK Renewables Finance BV’s green bonds issued in 2019 for an amount of EUR 325 million and with maturity of five years.
“When, in 2019, the first green eurobonds of DTEK Renewables were listed on the European stock exchange, we, as a company, took responsibility for implementing projects in Ukraine… In fact, this is our message to the world: Green energy in Ukraine has a future,” DTEK Renewables CEO Maris Kunickis said.
According to him, DTEK will continue to in clean and affordable energy and develop the renewable energy industry in Ukraine and hopes that the crisis related to non-payments for the renewable energy sector will be resolved soon, and the state policy regarding renewable energy will become understandable and predictable.
President of Vestas Northern & Central Europe Nils de Baar said that the Tiligulska WPP was the first order for the company’s EnVentus platform in Eastern Europe.
“We applaud the ambition of the Tiligulska project, and the confidence shown by DTEK in our technology as we continue to lower the cost of clean, renewable wind energy with the EnVentus platform,” he said.
According to the document, DTEK Tiligulskaya WPP will be equipped with innovative onshore wind turbines Vestas, suitable for low to medium wind speeds, the industrial production of which was launched early 2021. A total of 21 wind turbines with a capacity of 6 MW each will be installed at the wind farm. This model is the largest onshore wind turbine in the Vestas portfolio in terms of rotor size, spanning 162 meters from tip to tip, and its performance is a quarter higher than previous models.
According to DTEK’s calculations, the operation of phase one of the 126 MW wind farm will help reduce CO2 emissions by 504,000 tonnes per year.
The scalability of the Tiligulska wind power plant will also allow it to increase installed capacity to 564 MW, if required.
The Antimonopoly Committee of Ukraine (AMCU) on Tuesday decided to impose a fine of UAH 175.9 million on JSC DTEK Zakhidenergo and UAH 99.2 million on D.Trading LLC for abuse of monopoly position on the Burshtyn Energy Island in July-October 2019.
For its part, DTEK considers the decision taken as biased and unfounded.
“During the consideration of the case, the committee did not conduct a proper study of the functioning of the electricity market, the evidence and expert opinions provided were ignored,” DTEK said in a statement following the decision.
DTEK Renewables B.V., which manages DTEK’s renewable energy assets, received UAH 440 million in net profit in the first half of 2020, the company said.
According to the report, with revenue of UAH 4.103 billion, the company’s gross profit amounted to UAH 2.978 billion, operating profit some UAH 2.851 billion.
DTEK Energy saw a net loss of UAH 16.522 billion in January-June 2020 compared with UAH 3.342 billion in net profit for the same period in 2019, according to the company’s report released on Monday.
The company’s revenue in January-June this year amounted to UAH 20.447 billion, which is 42.6% less than in the same period last year (UAH 35.626 billion, taking into account the revaluation).
According to the report, the gross loss amounted to UAH 0.732 billion compared with UAH 9.161 billion of gross profit in the first half of 2019.
DTEK Energy told Interfax-Ukraine that the company’s production and financial results continue to be affected by the systemic crisis in the energy sector.
Thus, in the first half of the year, coal production by the company decreased 23% compared to the same period last year, to 8.7 million tonnes, and electricity production decreased 36.2%, to 10.1 billion kWh.
An additional negative effect was caused by the depreciation of the national currency due to the general economic recession. Loss on exchange rate differences amounted to UAH 5 billion compared with a profit of UAH 2.6 billion in the first half of 2019.
“To normalize the operation of the energy market, it is necessary to remove restrictions that distort its operation and lead to an economic imbalance of the entire industry. Compliance with the principles of free pricing will make it possible to ensure financial recovery of both private and public generation,” DTEK Energy said.
DTEK Energy in January-September 2019 increased its net profit by 85.4% (UAH 2.899 billion) compared to the same period last year, to UAH 6.294 billion, the report on the company’s website said.
DTEK Energy’s revenue for the nine months decreased by 39.7% (by UAH 47.523 billion), to UAH 72.289 billion, gross profit by 17.7% (by UAH 2.551 billion), to UAH 11.873 billion.
For the nine months, the company invested UAH 4.2 billion in production, and paid UAH 11.6 billion in taxes to the budgets of all levels.
The company told Interfax-Ukraine that profit growth against the background of a decrease in income is associated with the strengthening of the hryvnia exchange rate, due to which net profit was received.
“In total, net profit amounted to UAH 6.3 billion, which corresponds to the indicator of exchange rate differences, which are not a monetary operation. Thus, the company’s production activity did not show a positive financial result. This is due to the development of the regulatory system for a new model of the electricity market, which today offers great preferences to foreign manufacturers,” DTEK said.
