OREANDA-NEWS. In January to June 2016, DTEK Group companies produced 13.9 mln tonnes of coal (-0.8% YoY), generated 17.9 bln kWh of electricity (-7%), transmitted 22.8 bln kWh of electricity via networks (-0.9%), and produced 776.61 mcm of natural gas (+40.1%).

"Despite the unfavorable external environment, we managed to maintain the volume of coal production, implement a number of important investment projects for the new mine fields development, plants modernization and efficiency increase. We have increased natural gas production by 40% and completed drilling new gas wells deeper than 5,000 m, - DTEK’s CEO Maxim Timchenko said, commenting the company’s performance in H1 2016. - We hope for substantive progress in financial sector stabilization and adoption of the law on the electricity market and the law on the national regulator in the nearest future. This will allow Ukraine to implement system reforms in the energy and switch to European rules. Transition to market relations is a prerequisite for strengthening energy independence of the country, and efficiency and quality of services for all Ukrainians".

Coal production and processing

In the first half of 2016, DTEK miners produced 13.9 million tonnes of coal, which YoY equal. Processing plants increased their ROM coal processing and, respectively, concentrate production volume up to 10.6 and 6.6 mln tonnes.

Main factors influencing the production performance:

  • The production increase of anthracite and lean coals by 75.5%, or 1.3 mln tonnes.

The companies have been increasing the production for the second consecutive quarter. DTEK Mine Komsomolets Donbassa contributed most to the production growth. It was made possible by the restoration works in 2015, which helped resume coal production.

The limited energy supply of mines and Ukrainian TPPs in June served as a deterrent to higher rate of coal production.

DTEK Rovenkyanthracite, DTEK Sverdlovanthracite and DTEK Mine Komsomolets Donbassa supplied in January to June 2016 to DTEK Energy TPPs 1.9 mln tonnes of coal, which is a 26%, or 0.4 tonnes, YoY growth.

  • The production decrease of high volatile (steam) coals by 13.7%, or 1.5 mln tonnes.

In January to May 2016, due to the decrease in electricity consumption in Ukraine by 6.4%, or 4.3 bln kWh YoY, as well as termination of supply in the Crimea, demand for coal by the TPPs decreased.

The set tariffs for thermal power plants remain below the cost of production, which significantly limits the company to finance the purchase of spare parts and repair of mining equipment. This leads to coal production decrease and mining reduction.

Electricity generation

DTEK’s thermal power plants supplied 17.6 billion kWh of electricity, which is 7.1%, or 1.3 bln kWh YoY decrease.

Main factors influencing the production performance are:

  • an increase in electricity output by hydro power plants and pump storage power plants in January to June 2016 by 30%, or 1.2 bln kWh, due to the higher water level in the rivers of Dnieper and Dniester.
  • a shrinkage of the domestic electricity market due to terminated supplies to the Autonomous Republic of Crimea (by 2.8 bln kWh in the first half of the year);
  • a declined electricity consumption in Ukraine: in January to May 2016 the demand in the industrial sector dropped by 5.9%, or 1,3 bln kWh, and from households and public utilities by 6.3%, or 1.5 bln kWh.

Since October 2015 to May 2016, the Unified Energy System of Ukraine has seen a surplus of capacities. But in June basic electricity generation decreased, and coal supplies from Ukrainian mines in the ATO zone were suspended for 19 days. At the same time electricity consumption by population increased by 5.9%, or 146.2 mln kWh. These factors have led to power shortages in the UES of Ukraine.

In order to cover the power shortage DTEK Energy TPPs in June increased electricity production by 13.2%, or 335.2 mln kWh YoY. Due to growth of coal combustion, DTEK Energy TPPs stocks as of July 1, decreased by 24%, or 278 ths tonnes to 859 ths tonnes.

Electricity transmission by networks

Our distribution companies transmitted 22.8 bln kWh through networks from January to June 2016,  which matches the level of the similar period of the last year.

Main factors influencing the production performance are:

  • electricity transmission by Kyivenergo and DTEK Dniprooblenergo increase by 1%, or 121.3 mln kWh;
  • decreased electricity transmission by DTEK Donetskoblenergo, DTEK Power Grid, DTEK Energougol ENE by 4.4%, or 336.8 mln kWh, due to the military hostilities and unstable social and economic situation in the region.


In January to June 2016 the Botievo wind farm supplied 305.1 mln kWh. Slower wind speed YoY led to insignificant production decrease - by 12 mln kWh.

The wind farm’s availability factor was 99.42%, infrastructure factor was 99.95%. This means that wind turbines only 0.6% of the time were not ready to carry the load. Availability of wind turbines and infrastructure exceed the planned data, which indicates the well-organized operation and high reliability of the equipment.

DTEK Oil & Gas

In 1H 2016, Naftogazvydobuvannya produced 776.6 million cubic metres of natural gas and 26.8 ths tonnes of gas condensate, which exceeds YoY indicators by 40% and 34%, respectively.

Main factors influencing the production performance are:

  • completed drilling of deep well No.18 in the Semyrenkivske gas condensate field 5680 m deep. Currently it is being tested;
  • completed workover of wells 10 and 70 in the Semyrenkivske field;
  • well flow rate stimulation measures.


Key projects in progress are:

continued drilling of three deep wells in the Semyrenkivske field (each no more than 5 ths m deep), which started in the first half of 2015. The wells are expected to be put into operation in Q3 2016;

  • modernization of the natural gas metering systems in accordance with the new requirements established by the Code of the Ukrainian gas transportation system.