Naftogaz Group 2019 results: net profit of UAH 63.3 billion

Naftogaz Group reports consolidated net profit of UAH 63.3 billion after tax for the year ended 31 December 2019.

The 2019 was characterised by:

  • 16.1 bcm gas production, 78% share of Ukraine’s total, and 89.6 bcm of gas transit;
  • Cash flows generated by operating activities amount to UAH 110 billion, of which UAH 55.7 billion post-tax relates to the Gas Transit Award (gross $2.9 billion);
  • State budget benefits from the award in 2020 with a dividend payable of UAH 48 billion and already paid income tax of UAH 12 billion;
  • Unbundling of gas transmission infrastructure completed;
  • New 5-year gas transit deal signed with guaranteed revenues and foreign currency inflows;
  • Naftogaz issued Eurobonds for an amount of USD 835 million and EUR 600 million;
  • Total dividends paid to the State Budget in 2019 exceeded UAH 20 billion, including 90% of net profit for 2018 and interim dividends for 2019.

Naftogaz Chief Financial Officer Peter van Driel commented: “We have delivered a strong cash flow performance in 2019. We generated UAH 110 billion in cash flow from operating activities, including UAH 55.7 billion from the Gas Transit Arbitration (net of income tax), and distributed over UAH 20 billion in dividends to our shareholder the State of Ukraine.

We have seen lower volumes and gas prices in the fourth quarter of 2019, and we expect the macroeconomic environment to continue to be challenging in 2020. We have identified cost reductions and remain committed to capital discipline. Our balance sheet is robust with a relatively low leverage and we are well positioned for a prolonged downturn.”

The above excludes UAH 55.7 billion post-tax relates to the Gas Transit Award.

Recall that the Naftogaz Group, as a result of an open tender, attracted the international company Expert Petroleum to increase hydrocarbon production at the fields of JSC Ukrgazvydobuvannya in Western Ukraine.

Source: Naftogaz

Tags: The Cabinet of Ministers, Gazprom, gas, Naftogaz, contracts, Kobolyev, hydrocarbon production, Stockholm arbitration, court, legislation, EU, The Minystry of Energy and Coal Mining, Top management, gas imports, energy market, Ukrgazvydobuvannya, UGSF, gas production, gas transit, добыча нефти, GTS, drilling, коронавирус, RF, foreign affairs, taxes, oil transit, export, import, Gas market, GTS Operator, income, agreement, route, gas supplies, OGTSU, quarantine, pandemia, COVID-19, энергетическая безопасность, power system

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