Page 12 - FSUOGMWeek142020

FSUOGM PERFORMANCE FSUOGM
JKX revenue rises 10%, Ebitda 18% in 2019
UKRAINE
The result was achieved thanks to higher production.
JKX Oil & Gas reported a 9.6% year-on-year rev- enue increase to $101.7mn in 2019. Its revenue in Ukraine improved 12.6% y/y to $84.3mn, which was the result of stronger hydrocarbon output (by 52% y/y). Its Russian revenue decreased 2.2% against the background of flat y/y natural gas output. The company’s Ebitda swelled 18.0% y/y to $42.4mn, according to estimates by Con- corde Capital brokerage in Kyiv, as Ukraine’s and Russia’s Ebitda both grew 20% y/y (to $42.2mn and $7mn respectively) and operating losses in the UK increased 10% y/y. The company’s net income from continuing operations surged 72% y/y to $20.2mn, while total income advanced 46% y/y to $22.2mn.
The company generated $33.0mn in cash flow from operations (up 5.4% y/y) and boosted capital expenditures 2.5x y/y to $28.8mn in 2019. Its cash balance increased 6.5% y/y to $20.7mn as of end-2019. JKX also reported that it paid its
last bond tranche in February ($5.8mn), thus becoming debt-free. Besides cash, the company has open credit lines for $13.9mn, which it is not using currently.
The company sold its Hungarian assets (which it reported as discontinued operations in its 2019 accounts) and completed its workover programmes in Russia, having decided to con- centrate on investments in Ukrainian assets in 2020.
“JKX seems to be well prepared for the chal- lenging situation on [the] energy commodity market, having a solid liquidity position and no large CapEx plans,” Alexander Paraschiy, an analyst at Concorde Capital, wrote in a research note.
“This, as well as the company’s recent victories against Ukrainian tax administrations, allows us to remain optimistic about JKX’s potential to increase value in the mid-term,” he added.™
POLICY
Belarus to get 2mn tonnes of Russian crude in April, Minsk says
BELARUS
Russia is selling Belarus oil at $4 per barrel.
BELARUS has confirmed Russian oil supplies will arrive at its refineries, up to 2mn tonnes in April, which is equal to the nation’s monthly demand.
“[On April 2] the Belarusian oil refineries began to contract the volume of oil supplies from oil companies for April. In total, according to the commercial proposals coming from suppliers, there are plans for the supply of raw materials [amounting to] up to 2mn tonnes,” the media office of the nation’s petrochemical conglomer- ate Belneftekhim said on April 3.
At the moment, the suppliers’ prices for Urals crude oil for Belarus equates to $4 per barrel. The issues related to the payment of premiums to Russian suppliers will be settled by inter-budget- ary calculations, according to state news agency BELTA.
In Janaury-March, Belarus was hit by a severe shortage of Russian oil for its two refin- eries – major money-spinners for the economy – as Moscow halted crude supplies to Belarus on January 1 after a contract expired, and the two
countries are still in negotiations over a new agreement.
Minsk said later in January that it had secured a temporary limited solution on shipments by companies of Russian oligarch Mikhail Gutseriev, without paying a premium. In previ- ous years Belarus bought oil on terms similar to those for Russian independent refineries, which involved a small premium.
On January 24, Belarusian President Alex- ander Lukashenko pledged to purchase crude oil “in America, Saudi Arabia and the UAE” following Moscow’s refusal to deliver oil to the post-Soviet nation in 2020 on Minsk’s terms.
In February, Lukashenko pledged to siphon off Russia’s transit oil from the Russia-EU Dru- zhba oil pipeline, if Moscow failed to supply the “necessary volume” of oil in February. The pipe- line splits into two routes in Belarus - a northern leg runs to Poland and Germany, and a southern leg to Ukraine, the Czech Republic, Hungary and Slovakia. ™
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w w w . N E W S B A S E . c o m Week 14 08•April•2020