EAVEX Weekly

August 31, 2020

Kyiv-listed equities finished mixed over the week but the UX index gained 2.1% to 1318 points, driven by a 13% surge in CentrEnergo (CEEN). The stock got a boost to UAH 5.20 after news that the company repaid its debt to state-owned mines for previously-supplied coal. CentrEnergo’s acting CEO Alexander Korchinsky made a detailed statement regarding unfair practices on the electricity market due to state producers CentrEnergo, EnergoAtom and UkrHydroEnergo being obligated to conduct auctions to sell electricity. Private electricity producers like DTEK and DonbasEnergo have an advantage on the open market, as they are able to pursue direct bilateral contracts with large industrial consumers. Also, CentrEnergo’s acting CEO announced the intention to sell off the company’s non-core assets, which currently generate about UAH 10mn in losses every month.