The company forwarded corrected financial plan for 2019 for consideration. Andriy Kobolyev, the Head of NJSC Naftogaz of Ukraine, announced it.
“We prepared the document in full conformity with the Law on the State Budget as the government required, while my contract renewal in March 2019”, he wrote Kobolyev.
Kobolyev clarified that the document is prepared taking into account the continuing of special obligations existence for Naftogaz regarding gas supply to private distribution companies and heat producers and as the result, expected debt increase of these counterparties.
“In accordance with the state budget, the financial plan includes no compensations to Naftogaz for losses, which company experienced, while carrying out special obligations and supplying gas on worse conditions than the market has. Recall, Naftogaz’s right for the compensation is provided by the Law on Natural Gas Market and confirmed in the court”, emphasized the Head of NJSC.
The financial plan includes the World Bank loan repayments in 2019 in the amount of €395 million.
He also reminded the necessity of pumping gas into UGSFs for the next heating season.
“The other important factor, which is included in the financial plan, is the necessity of saving about 20 billion cubic meters of gas in the UGSFs for the new heating season”, the Head of Naftogaz noted.
The financial plan also provides for dividends payment by Naftogaz in the amount of 90% from the profit of 2018 (12.3 billion UAH) and also allocation of 2.7 billion UAH to implement individual gas meters for consumers.
According to the results of 2019, Naftogaz expects to get a net profit in the amount os 16 billion UAH but with a liquidity squeeze. Credit portfolio of the company is reduced to to historic lows over the past 6 years.
Naftogaz is preparing to transfer the gas transmission system to the reverse mode if there is no gas transit contract with the Russian Federation
Naftogaz reduced net profit by 64% to 13.6 billion UAH
Naftogaz increased gas prices for industrial consumers