Naftogaz Ukrainy Profit Falls 5.8%
State monopoly Naftogaz Ukrainy reported December 28 a 5.8% drop in profit for the first nine months of the year, relative to the same period last year, at hryvnia 16.7bn ($610mn). The main reasons were the hryvnia 4.3bn rise in receivables, chiefly from gas distribution companies in the Dmitry Firtash group; and the hryvnia 4.8bn value-added tax payment due from the international transit award from the Stockholm arbitration court, it said. As well as taxes, the entirely state-owned company paid hryvnia 13.7bn in dividends to Kiev, on its 2017 income.
And it transited 7% less gas across its network owing to more Russian gas flowing through the Nord Stream and Opal pipelines, leading to a total 65.4bn m³. This cut revenues year on year from hryvnia 11.6bn to hryvnia 9.1bn.
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On the positive side, it imported 16% less gas for consumers on a lower tariff (public service obligations) as it used 1.8bn m³ more of its own gas production. The cold start to the year contributed to a 10% rise in the amount of gas sold compared with the same period of last year, to a total 12.5bn m³ over the nine months, and it sold more of its own gas from storage to industrial consumers, on which activity it made a profit of hryvnia 2.7bn. But despite higher offtake, storage remained a loss-making segment.
It also paid lower interest rates on its borrowings. It has repaid some hryvnia 20.3bn of debt compared with the same period last year.