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.
DTEK Energy Holding plans to build two wind farms – Tylihulska wind farm LLC (in the territory of Anatolivka, Krasnopillia and Tashyne rural councils of Berezanka district of Mykolaiv region) with a capacity of 500 MW and Tylihulska wind farm 2 LLC (in the territory of Tashyne rural council) with a capacity of 65 MW, according to a register of environmental impact assessment.
Under the Tylihulska wind farm project it is planned to install up to 130 wind turbines with a capacity of 3.9-6 MW 700-1,500 meters far from each other. The height of the tower is 105-157 meters.
In addition, it is planned to build up to 10 110/35 kV substations, a 35 kV and /or 110 kV overhead power line of 100 km long, as well as 35 kV and /or 110 kV underground power lines of 150 km long.
The total construction area will be 35,000 ha.
Under the Tylihulska wind farm 2 project it is planned to install up to 17 turbines with a capacity of 3.9-6 MW 700-1,500 meters far from each other. The height of the tower is 105-157 meters. It is also planned to build a 35 kV and /or 110 kV overhead power line of 20 km long, as well as 35 kV and /or 110 kV underground power lines of 40 km long.
The total construction area will be 3,000 ha.
DTEK Energy plans to increase production of coal in Ukraine by 5-7% in 2018 compared to 2017, 24-24.6 million tonnes, The company’s CEO Dmytro Sakharuk told journalists. “This year, we plan to produce more than 24 million tonnes of rough coal,” he said.
According to him, coal imports by DTEK in 2018 are expected at up to 2 million tonnes, including about 1 million tonnes from DTEK’s anthracite mines in Russia’s Rostov region for Luhanska thermal power plant, and another 1 million tonnes for Kryvorizka thermal power plant, which also consumes anthracite.
In addition, DTEK intends to export about 5 billion kWh of electricity in 2018, which corresponds to the figures of the previous year.
DTEK Energy, which was created in 2005 as part of Rinat Akhmetov’s System Capital Management, is a key player in the Ukrainian coal industry. DTEK Energy assets are represented by 16 mines and 5 coal-processing plants. Total coal production in 2016 amounted to 29.2 million tonnes, accounting for about 70% of total production in Ukraine.
