Page 67 - UKRRptJun21

compared with a net profit of UAH63.294bn in 2019, reflecting lower demand and gas prices, and material provisions for bad debts, the company said on April 28 on its website Interfax Ukraine reports.
Excluding the results of the discontinued operations, including the Gas Transit Arbitration award of UAH55.7bn, the net profit was UAH2.6bn, the company said in its press release.
"The company bottomed out and started generating profit," Executive Board Chairman Andriy Kobolev said at the presentation of the results.
He said that following the results of the first quarter, Naftogaz will receive a net profit, but refused to name it due to restrictions associated with a possible issue of eurobonds.
In a press release, the company said that the underlying profit for the full year, excluding provisions for bad debts and other unusual items, was UAH3.2bn.
Naftogaz said that in the fourth quarter of 2020, the loss amounted to UAH2.0bn, compared with a loss of UAH10.3bn over the same period in 2019.
"The company has entered into a period of improved profitability with an expected underlying profit in the first quarter of 2021," the company said.
Naftogaz's revenues in 2020 grew by 27.1% (by UAH41.184bn) compared to 2019, to UAH193.017bn, including income from sales being UAH159.234bn (a rise of 6.3%), compensation for performing public service obligations totaling UAH32.205bn (a rise of 100%), and interest and other income reaching UAH1.578bn (a fall of 23.1%).
In terms of segments, in 2020, sales revenue and adjusted EBITDA was the following: commerce (UAH75.476bn/UAH15.718bn), exploration and production (UAH55.875bn/UAH27.99bn), gas transit arrangement services (UAH46.724bn/UAH1.722bn), Ukrnafta (UAH35.535bn/UAH9.628bn), oil midstream and downstream (UAH11.501bn / UAH2.052bn), gas storage (UAH5.147bn/UAH3.285bn), others (UAH1.857bn/ - UAH5.596bn), elimination (-UAH72.881bn).
Geographical concentration of sales was the following in 2020 and 2019: Ukraine (UAH104.266bn/UAH143.168bn), Russia (UAH49.91bn/UAH3.377bn), Europe (UAH4.837bn/UAH2.868bn), Egypt (UAH0.209bn/UAH0.354bn), and the United States (UAH0.012bn/UAH0.014bn).
Gazprom has refused a GTSO offer to expand its transit volumes of gas via Ukraine to Europe, Interfax Ukraine reported on April 28.
Under the terms of a new transit deal signed in December 2019 Gazprom has to pay for a volume of 40bn cubic meters of transit gas in 2021, or 109mn cubic meters per day.
The company booked an additional 15mn cubic meters (mcm) at an auction on April 19, giving a total of 124 mcm per day for this year.
At the end of last month the Gas Transmission System Operator of Ukraine (GTSO) offered Gazprom an additional 63.7 mcm per day at the monthly
67 UKRAINE Country Report XXXX 2018 www.intellinews.com