On February 20, 2020, Ukrnafta was unable to sell oil and gas condensate at the Ukrainian Energy Exchange (UEEX). This was reported by the press service.
No applications were received from bidders. As a result, Ukrnafta was unable to sell oil and condensate worth UAH 5.62 billion.
The company reports that the total volume of unsold products, including auctions that have not taken place earlier, amounted to 480 thousand tons, including production in February and March.
“This is equal to the volume of production for 4 months. The company put up for sale 81 positions in volumes from 600 to 11483 tons. The next auction is scheduled for March 11”, the report said.
It is noted that since the beginning of 2020 this is the second auction of the company, which did not take place due to a lack of buyers. Last year, 11 out of 20 exchange auctions did not take place, at which Ukrnafta was required by law to sell oil and condensate at starting prices set by the state auction committee. The starting price calculation formulas tie them to the level of oil import parity, because of which they can significantly exceed the prices at which Ukrainian oil refining companies are able to import raw materials or buy them on the domestic market.
“Restrictions on the sale of raw materials adversely affect the financial results of Ukrnafta and the ability to finance an investment program”, the company said.
To recap, in 2019 Ukrnafta was not able to sell a quarter of its products.
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