Ukrnafta's net income has decreased by 5.7 billion UAH for 9 months of 2019

According to the results of 9 months of 2019, Ukrnafta's net income reached 21.3 billion UAH, and its net loss amounted to 363.8 million UAH. The company notes that the main factors contributing to the deterioration of the financial result were the inability to sell the entire volume of oil and condensate produced at the state exchange auctions, as well as the growing costs of servicing tax debt. This was reported by the press service of the company.

“Since the beginning of this year, due to the lack of buyers, 8 out of 15 exchange auctions have not been held at which Ukrnafta is legally obligated to sell oil and condensate at the state prices. At the last auction, which was held on October 16, 377 thousand tons of oil and condensate remained unrealized, which is equal to the volume of Ukrnafta’s production for 3 months”, the statement said.

For 9 months of 2019, Ukrnafta has increased its average daily oil and condensate production to 4.16 thousand tons/day, which is 5.3% more compared to the same period last year. The average daily gas production, in turn, increased to 3.19 million m3/day, an increase of 9.25% compared to 9 months of 2018.

PJSC Ukrnafta is the largest oil company in Ukraine. According to the results of the 1st half of 2019, the company's share in national oil production with gas condensate was 62.7%, and its share in total gas production was 5.6%. The enterprise has 25 drilling rigs, 1891 oil and 162 gas wells on its balance sheet. PJSC Ukrnafta owns 537 gas stations in almost all regions of Ukraine. 50% + 1 share of the company is owned by Naftogaz of Ukraine.

Meanwhile, according to industry experts, this year, perhaps, this year Ukrnafta has switched to a new tolling scheme of oil and condensate at Kremenchuk refinery, which could lead to such sad financial results. According to them, revenues from the sale of natural gas make up only 9% of the total revenue structure of Ukrnafta, and a decrease in the price of this product by 30.8% in January-September this year could not have such a significant effect on the overall revenue structure of the company. Oil prices for this period declined even less – only by 6.6%. Experts believe that this year Ukrnafta receives less of the proceeds from the sale of its crude oil, while profit remains in other parts of the general system of Privat, a private vertically integrated oil group of companies, of which it is a part.

Tags: The Cabinet of Ministers, gas, Naftogaz, contracts, oil, hydrocarbon production, legislation, Top management, Ukrnafta, gas production, добыча нефти, Oil refinery plant, Gas processing plant

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