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9.2 Major corporate news 9.2.1 Oil & gas corporate news
Naftogaz group paid UAH12.7bn in taxes to the state and local budgets in January-February 2021. Naftogaz group’s contribution accounted for 9% of the state budget revenue in the first two months of 2021. Naftogaz group remains Ukraine’s biggest taxpayer. In 2020, Naftogaz group’s tax and dividend payments to budgets of all levels totalled UAH142bn.
Fitch Ratings has affirmed National Joint Stock Company Naftogaz's (Naftogaz) Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'B'. The Outlook is Stable. The rating is equalised with the sovereign rating of Ukraine (B/Stable), as the company has strong linkage with sovereign. Among other key rating drivers Fitch assumes strategic importance of Naftogaz as Ukraine's largest natural gas production, wholesale and supply company, volatile regulatory environment, e. g. expecting full cancellation of the PSO regime vs other evolving regulations, FX risks, intensive capex plans and business profile transformation. Last month, Naftogaz Group has released its new corporate strategy-2025. By 2025, the Group plans to unleash the potential of the country's energy markets and create a platform for supplying solutions to consumers. The document envisages the future of Naftogaz based on three business platforms: "Gas Business", "B2C/Utility" and "Low Carbon Businesses" with an aim to achieve carbon neutrality by 2040.
Oil and gas company JKX Oil & Gas that operates several fields in Ukraine and Russia saw its profits fall by 10.6% to $19.87mn in 2020, the company said in a report filed with the London Stock Exchange on March 31. The company was upbeat about the result which it said was a success due to a challenging year which saw a number of capital projects in both Russia and Ukraine suspended due to the coronacrisis, according to the chairman of the board Charles Valceschini. Revenue last year decreased by 31.6%, to $69.62mn with a decrease in production by 5%, which is associated with a sharp drop in sales prices for oil and gas, he added, as cited by Interfax Ukraine. Valceschini indicated that the company in 2020 saw an increase in free cash to $24.3mn from $20.6mn a year earlier.
9.2.2 Automotive corporate news 9.2.3 Transport corporate news
Cabinet votedto dismiss Volodymyr Zhmak as chairman of the state monopoly Ukrainian Railways, Interfax reports on March 17, citing Infrastructure Minister Vladyslav Krykliy.
Ukrainian Railways plans to increase freight revenue 10% in 2021.
Ukrainian Railways is planning to generate UAH72bn revenue from freight transportation in 2021, which is 10% more y/y, the company’s press service reported on March 16. This year, the company expects to deliver 314 mmt of cargo, which is 3% more y/y. In this way, the key driver for the freight revenue increase will be the adjustment of freight rates. This is planned to be achieved
63 UKRAINE Country Report April 2021 www.intellinews.com