Page 71 - UKRRptNov21

Ukrnafta reported UAH2.48bn in EBITDA, compared with a loss of UAH2.13bn a year before.
Despite the improvement in core earnings, the company still recorded a net loss of UAH1.65bn, although this was much smaller than the loss of UAH11.54bn a year earlier.
As Alexander Paraschiy, an analyst at Concorde Capital, commented, Naftogaz’s results were “very strong, but the worst times are ahead.”
Naftogaz generated a net profit of $325mn (Hr 8.5bn) between March and June, according to a report published on the company’s website on.
It’s a $880mn swing compared to the company’s net loss of $562mn (Hr 14.7bn) for the same period in 2020.
The company’s statement appears to hint that this result is linked to Vitrenko, who replaced his predecessor Andriy Kobolyev on April 28.
Ukraine’s leading natural gas producer and trader Naftogaz percentage generated UAH106.23bn ($3.85bn) net revenue, up 46% y/y, in 1H21, according to its interim report released on Oct. 28. The key growth segment was gas trading and supply (up 105% y/y), which was a result of the significant increase of natural gas prices. The company’s EBITDA (before impairment of financial assets/receivables) increased 31% y/y to UAH33.10bn ($1.20bn), with key contributors being gas E&P (UAH26.64bn, up 145% y/y) and trading (UAH4.55bn, up from negative UAH1.98bn a year ago), as well as Ukrnafta (UAH2.48bn, up from negative UAH2.13bn). Its EBITDA as reported (after impairments) reached UAH12.92bn in 1H21, up from a negative value in 1H20. The company’s net loss improved to UAH1.65bn in 1H21, from UAH11.54bn a year ago.
Naftogaz’ operating cash flow before working capital changes tripled y/y to UAH33.72bn, largely reflecting its EBITDA (before impairment) level. It generated net cash from operations of UAH17.78bn, 19% more y/y. Its investments in PP&E remained relatively flat y/y at UAH7.42bn.
The company’s total debt decreased 12% YTD to UAH58.29bn as of end-June 2021, while its net debt decreased 73% y/y to UAH7.86bn. In this way, its ratio of total debt to LTM EBITDA (after impairments) reached 1.5x as of end-June, down from 2.8x as of end-December.
In its press release on interim results, Naftogaz stressed that it was profit-generating in the second quarter of 2021, which is when Yuriy Vitrenko was at the position of the company’s CEO. Namely, the company generated UAH8.50bn of profit in the second quarter of 2021, after UAH10.15bn losses in 1Q and UAH19.00bn losses in 2020, when Vitrenko’s predecessor ran the company.
At a press briefing the same day, Vitrenko said that Naftogaz is yet to decide on a possible issue of Eurobonds this year.
Naftogaz to supply 700 million cubic meters of gas to Moldova. Naftogaz
has signed a framework agreement with Moldovan Energocom to supply 700
71 UKRAINE Country Report November 2021 www.intellinews.com