DTEK Energo, managing assets in coal production, heat generation and distribution of DTEK energy holding, saw a 61.5% fall in net loss in January-June YoY, to 8.135 billion UAH.
The company said in a press release that the main contributor to net loss reduction was continued Hryvnia devaluation, which resulted in exchange rate difference losses being 75% lower.
Revenue grew by 24.6%, to 56.986 billion UAH. Earnings before interest, taxes, depreciation and amortization (EBITDA) fell by 75.6%, to 3.171 billion UAH.
The main contributors to growth of revenue were higher sales of gas, third party coal sales in Ukraine and electricity sales to European markets.
EBITDA margin was 5.6% compared to 1.7% in H1 2015.
Capital expenditure grew by 16.1%, to 2.176 billion UAH.
The first six months of 2016 saw the continuation of the 2015 trend where the tariffs set for electricity supply did not fully cover its production cost.
In addition, the overdue debt of the state enterprise Energomarket for the electricity produced by the company in January-June increased by 2 billion UAH, aggravating the liquidity position even further. As of July 1, the total debt of Energomarket exceeded 6.9 billion UAH.
The other negative factors that had a material impact on the company’s performance were losses of the companies located in the non-controlled territory.
As of June 30, the company’s loan debt was 61,737 million UAH.
Due to severely deteriorated liquidity, the company has started discussions on the long-term debt restructuring with its creditors earlier this year. After entering into a standstill agreement with the bondholders, the company formalized a standstill agreement with the banks on September 21, in order to create a stable platform to progress the long-term restructuring negotiations with all its creditors.
On September 22, DTEK Energy completed the deleveraging transaction involving transfer of the company’s Russian assets along with $436 million of related debts outside the perimeter of DTEK Energy. The transaction has reduced DTEK Energy’s debt amount by 17%, thus contributing towards improvement of the company’s financial position. The company expects to complete the long term restructuring with its creditors within the coming months. (Interfax/Business World Magazine)