Naftogaz Group 2020 half-year results: net loss of UAH 11.5 billion

Naftogaz reports consolidated net loss of UAH 11.5 billion after tax for the six months ended 30 June 2020. The six months of 2020 were characterised by:

· 7.2 bcm gross gas production and 9.4 bcm of gas sold;

· Significant drop in gas and oil prices;

· Cash flows generated by operating activities amount to UAH 15.6 billion;

· Total taxes paid to the State Budget exceeded UAH 75.5 billion.

· Total dividends paid to the State Budget in 2020 were UAH 39.6 billion, which together with UAH 8.5 billion dividend prepaid in 2019 comprise 95% of net profit for 2019.

Naftogaz Chief Financial Officer Peter van Driel commented: “Naftogaz has delivered a solid cash flow in a challenging environment with a noticeable impact from COVID-19 and weaker gas prices and demand. We paid an attractive dividend of UAH 39.6 billion to our shareholder, the State of Ukraine.

We continue to focus on protecting our people and reliable operations. Our priority is discipline in capital spending, reduction of operating costs, and more efficient and effective operations as part of our transformation journey.”

Exploration and production result reflected lower gas prices, partially offset by lower subsoil royalties as compared to the first six months of 2019.

Oil midstream and downstream result suffered from lower petroleum products prices. Cost savings have offset the impact to a certain extent.

Commercial was negatively impacted by lower volumes and prices as well as higher provisions for receivables.

Gas storage reflected higher revenues from pumping and storage services due an increased demand.

Ukrnafta’s result were negatively impacted by lower gas prices and lower volumes of crude oil sold.

Other activities include transit related services and product sharing agreement with the Arab Republic of Egypt and Egyptian General Petroleum Corporation.

Tags: The Cabinet of Ministers, gas, Naftogaz, contracts, oil, Kobolyev, hydrocarbon production, Ukrtransnafta, energy market, Ukrgazvydobuvannya, gas production, gas transit, добыча нефти, GTS, drilling, коронавирус, Oil refinery plant, Gas processing plant, oil transit, debt, Gas market, investments, price, agreement, gas supplies, volumes, oil deliveries, well, field, infrastructure, energy sector, natural gas, quarantine, pandemic, COVID-19, decline in production, oil reserves, crisis, economy, oil and gas industry, oil production, gas production, supplier, consumers, oil market

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