Industry: Energy

Share for privatization: 78,289%


Centrenergo is a 78.3% state-owned company that generates electricity in industrially advanced regions of Ukraine, including Kyiv (Trypilska), Kharkiv (Zmiivska), and territory under control in Donetsk region (Vuhlehirska). It consists of three combined heat-and-power plants (CHPs) with total production capacity of 7,690 MW and a maintenance company “Remenergo”, which is in charge of equipment repairs for CHPs. Centrenergro facilities account for about 15% of total power generated in Ukraine. In 2016, 78.3% of company’s shares were transferred to State Property Fund. The company is audited by Baker Tilly since 2014. The company has a supervisory board that consists of five people, including three representatives of the State Property Fund, and two representatives of other shareholders.


In 2018, Centrenergo generated 20% of power produced by all CHPs in Ukraine. The company’s installed capacity only reached 31% which implies significant potential for increasing market share. In 2019 Centrenergo decreased the average tariff from 1.9 to 1.3 UAH/kWh. In the last five years, the company has changed the mix of raw materials it uses. Initially, 39% of company’s generating capacity were gas-fired and 61% were coal-fired. 45% of the company's total generating capacity was operating on anthracite, and therefore highly dependent on it. In 2014 due to military conflict in the sourcing region, it became in short supply, which resulted in decrease of electricity output and search for substitution options starting from 2017. As of 2019, the company successfully became independent from anthracite. As of 2018, the company employs 6,765 workers, and from 2017 to 2018 the number of employees mostly remained unchangeable, while average monthly salary increased by 15%.

Output (GWh)6 2848 68510 155
   Growth (%, y-o-y)-36%38%17%
Tariff (UAH/kWh)1.931.851.66
   Growth (%, y-o-y)61%-4%-10%
Average Monthly Salary (UAH)12 22114 09415 786
Number of Employees6 8326 7656 697


While revenue grew by 33% in 2018 as compared to 2017, the cost of sales increased by 68% in the same period. This resulted in Gross margin of 3% in 2018 as compared to 23% in 2017. The main stream of revenue comes from the production and sale of electricity (UAH 14,509m or 99% of total revenue in 2018). The twofold increase in COGS as compared to revenue resulted in net income decrease by 74%. (499m UAH in 2018 and 1,891m UAH in 2017).

INCOME STATEMENT (m UAH)2017201820192020
Revenue10 91914 50915 13320 584
COGS8 39014 10815 96520 518
Gross Profit2 529401(831,6)65,5
EBITDA2 7481 037(1 770)451
Operating Profit2452727(2 086)182
      Net Financial Income / (Loss)(105)(110)(112)(181)
Profit/(Loss) Before Taxes2 347617(2 198)0,987
      Corporate Income Tax(456)(118)21960
Net Income/(Loss)1 891499(1 979)61
Dividends paid2011 383-242

The book value of assets decreased by a UAH 1.65b (-16.4% y-o-y) to UAH 8.42b in 2018 driven by a UAH 1.71b decrease in current assets (30% of total assets), which were mainly comprised of inventories (43%) including fuel (72%), accounts receivable (36%), cash & cash equivalents (18%) and other current assets (3%) and by a UAH 69m increase in fixed assets (70% of total assets), which represented by PP&E (88%) including specialized machinery and equipment (53%), buildings and facilities intended for electricity production (34%) and vehicles (13%), and other fixed assets (12%). On the liabilities side, current liabilities decreased by UAH 835m (-32% y-o-y) to UAH 1.77b in 2018, represented 71% of total liabilities and consists of accounts payable (72%) and other current liabilities (28%). Non-current liabilities made up the remaining 29% of total liabilities and consists of provisions (84%), deferred tax liabilities (10%) and other non-current liabilities (6%).

BALANCE SHEET (m UAH)2017201820192020
Total Assets10 0748 4238 97010 568
Fixed assets5 8495 9165 8605 733
PP&E53765 2035 0254 888
Investment Property----
Current Assets4 2252 5083 1104 834
Inventories2 2031 0831 863523
Accounts Receivable9049089192 740
Cash & Cash Equivalents1 075465561 225
Total Liabilities & Equity10 0748 4238 97010 568
Total Liabilities3 1882 4885 3096 851
Accounts Payable1 7201 2813 9685 049
Short-term Debt2 6131 7784 5145 876
Long-term Debt575710795976
Equity6 8865 9363 6613 716
Sales Growth (%, y-o-y)2%33%4%36%
EBITDA Growth (%, y-o-y)132%-62%-271%125%
Net Income Growth (%, y-o-y)389%-74%-497%103%
EBITDA Margin (%)               25.17%7.15%-12%2.19%
Net Income Margin (%)22.54%3.54%-13%0.30%
ROE (%)27.46%8.41%-54%1.64%
ROA (%)20.27%5.40%-22%0.58%
Debt/Equity (%)46%42%145%184%
Project description
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Main activity:
One of the leading energy generating companies in Ukraine, engaged in the production and supply of electricity and heat.

Production capacity:
Three thermal power plants (TPPs) are Uglehirska, Zmiivska and Trypilska with a total installed capacity of 7,690 MW, which is approximately 15% of the total electricity generation capacity in the country, and a separate production company Remenergo, which repairs the main and auxiliary equipment of TPPs.

Average number of employees: 6,771 (2018)

Land plot:
owned: n / a
in use: n / a
leased: n / a

Legal obligations: n / a

Additional Information:
In 2018, the share of Centerenergo's electricity generation among all TPPs was 20%, while the company's share of the total installed capacity reached 31%, which provides a significant potential to increase market share.

Share proposed for privatization: 78.289% (21.711% belongs to individuals and enterprises).

Starting price and date of the auction: n / a

Investment advisor contact information: not selected

Part Capital: 78,289
Object address: 03022, Kyiv city, Kozatska street, house 120/4, letter "Ye"

Type of object of Great privatization
block of shares

Сode of the balance holder: 00032945

The main type of economic activity according to the NACE:
42.99 Construction of other structures, n. in. and. in.;
35.11 Electricity generation (main);
35.12 Transmission of electricity;
35.13 Distribution of electricity;
35.30 Supply of steam, hot water and air conditioning;
41.20 Construction of residential and non-residential buildings.

Object code (registration number): 22927045

Blocks of shares. %: 78,289 th most common

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