DTEK Oil & Gas

DTEK Oil & Gas (DOG) reported 2021 sales of $593m (+122% y-o-y), EBITDA of $423m (+123%) and net income of $246m (+175%), for an EBITDA margin of 71.4% (+0.5pp) and net margin of 41.5% (+8.1pp). Net operating cash flow increased by 23% y-o-y to $137m, investing cash outflow quadrupled to $91m, and financing cash outflow shrank to $7m from $91m in 2020. Total debt was relatively unchanged at $428m while net debt fell by 9% to $385m. DOG held $43m of cash as of year-end (vs. $3m at end-2020). Total Debt/EBITDA thus dropped to 1.0x (vs. 2.3x in 2020) and Net Debt/EBITDA to 0.9x (vs. 2.2x).

DTEK held a conference call to provide an update on DTEK Energy, DTEK Renewables and DTEK Oil & Gas. The company saw a c. 30% y-o-y drop in domestic electricity demand in March. Renewables cut output dramatically, initially because of curtailments early in the month and later, with curtailments lifted, due to Zaporizhya region wind power plants going offline due to damaged grid infrastructure and military hostilities nearby.