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obligations (PSO) on the company.
It should be noted that in accordance with the 2022 consolidated financial plans for Naftogaz, approved by the company’s Executive Board, results forecast annual profits of UAH 91.8B. One of the key factors here is the receipt of compensation for “the difference in tariffs” provided by law, by DHCs and gas distribution system operators. Naftogaz as well should be compensated for the public service obligations imposed by the government, as envisaged by law. Accordingly, such compensation should be paid from the state budget of Ukraine. In particular, this is caused by the difference between the price of imported gas and its sales price established by the state within the framework of the public service obligations (PSO) imposed on the company. Thus, the state shall compensate this difference so that the public service obligations imposed by the state do not cause losses to the company.
The H1 2022 consolidated financial statements is accompanied by a management report. There, Naftogaz management sums up the most relevant issues of the company’s performance from the beginning of the year to the approval of the company’s financial statements by the Executive Board on 02 November 2022. In particular, it summarises the preparations for 2022-2023 heating season; analyses of problematic issues such as default on the company’s Eurobonds; shows the positive financial effect of maintaining production at a relatively stable level against the backdrop of a significant reduction in production by private companies under conditions of war.
We remind that based on the 2021 performance results, Naftogaz made UAH 12B profit after UAH 19B of losses in 2020. In August, Naftogaz published its extended presentation to the Annual Report, which reveals all aspects of the company’s performance under the tenure of CEO Yuriy Vitrenko in 2021.
Naftogaz Group is strengthening its strategic cooperation with American’s Halliburton, one of the world's largest oilfield services providers, to unlock the new potential of Ukraine's fields. This was discussed at a meeting between Oleksiy Chernyshov, Chairman of the Board of NJSC Naftogaz of Ukraine and Joe Rainey, President of Halliburton in the Eastern Hemisphere, which took place today, on 24 November 2022. Pro-active cooperation of the Group with Halliburton started in 2018. The American partner provided Ukrgasvydobuvannya with sidetracking services. These operations helped the company to arrange a significant additional production, primarily at the "old" wells and depleted fields. Currently, Ukrgasvydobuvannya is interested in starting the application of horizontal drilling technology, which can contribute to a rapid increase in gas production at the fields – both, new and those that have been in operation for a long time. “Your support and visit to Kyiv is a powerful signal for the entire market and the world. I am grateful to the US government, the American people and you personally for your comprehensive support of Ukraine. We really appreciate it. Our cooperation is extremely important and we are doing our best to improve and expand it. We see our future together as my task is to turn Naftogaz into a self-sufficient successful company with a strong reputation," Oleksiy Chernyshov said.
9.2.3 Transport corporate news
Ukraine has started building the second An-225, Mriya. Currently, the design work for the construction of the new An-225 Mriya has begun. As noted
64 UKRAINE Country Report December 2022 www.intellinews.com