Page 12 - FSUOGM Week 28 2020

FSUOGM PERFORMANCE FSUOGM
Naftogaz reports record profits in 2019
UKRAINE
Naftogaz listed the renewal of its transit deal with Gazprom among its key achievements.
IN 2019, Ukraine's state-run oil and gas corpo- ration Na ogaz generated UAH50.6bn ($1.9bn) in net pro t, the largest gure among the coun- try's state-owned enterprises, the company said on July 13, adding that it had paid 95% of this amount to the state budget in the form of dividends.
Last year, the company paid UAH121.4bn ($4.5bn) of taxes and dividends to the state and local budgets, which corresponded to about 16% of revenues.
“Ukraine is a resilient country, not unfamil- iar with su ering in major ways," Clare Spot- tiswoode, chair of Na ogaz supervisory board, said in a statement. "Na ogaz has inherited this resilience in its blood, and it will serve the group well in the months and years to come, and Naf- togaz will come out of the current global crisis stronger."
“2019 saw an effective reset in relations between Ukraine’s biggest company and the country’s authorities," she went on to say. "For perhaps the rst time, we saw clear synergy in the teamwork of the government, Parliament and Na ogaz."
Naftogaz said its achievements in 2019 included proper and prompt TSO unbundling as well as successful negotiations with Russia and Gazprom, which resulted in a new transit contract. Ukraine is entitled to $7.2bn of guar- anteed revenue under this contract within the
next ve years. Na ogaz also received more than $2.9bn in compensation from Gazprom under the Stockholm arbitration award.
In 2019, Na ogaz increased its operations in adjacent industries. The group took over management of the Novoyavorivska and Novo- rozdilska heat producing plants in Lviv region, preventing a disaster and supplying heat and hot water to 60,000 citizens in these towns. Further developing new businesses, the group plans to start active operations in gas supply to households a er the PSO expiry this year. ese activities will focus on creating new value for consumers and developing competition in the gas market.
"2020 is a crisis year for the oil and gas industry," the company said. " e signi cant fall in global hydrocarbon prices was exac- erbated by the COVID-19 pandemic. Based on the changing conditions, Na ogaz Group reviews its operating costs and investment pro- grammes on a regular basis, adjusting to lower revenues and rigorously assessing expected ROIC."
"Nevertheless, Naftogaz continues to keep a strong focus on environmental protection, developing local communities, enhancing com- petence of both workers and managers," it added. "Na ogaz intends to allocate su cient funding for these activities, boosting these investments compared to the previous year." ™
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Week 28 15•July•2020