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The main factor affecting the general picture of financial reports was the decline in the net profit of NJSC Naftogaz of Ukraine.
Ukraine's 100 largest state-owned companies in the first half (1H) of 2018 saw their net profit plunge to UAH 21.5 billion (US$775.9 million), which was 41.9% down year-over-year (y-o-y).
"Today, there are 3,364 public sector enterprises in Ukraine, of which only 1,594 operate. The total assets of the 100 largest state-run enterprises' portfolio account for about 93.3% of the total value of all operating state-owned enterprises in Ukraine, according to a report by the Ministry of Economic Development and Trade of Ukraine.
"As of the end of 1H 2018, the total book value of assets of the TOP-100 state-owned companies' portfolio amounted to over UAH 1.410 trillion ($50.9 billion), which was almost 3.8% lower than in the same period of 2017," the report said. In the six months of 2018, the 100 largest state-run companies received a total of UAH 21.5 billion ($775.9 million) in net profit, which was almost 41.9% (UAH 15.5 billion/$559.4 million) down y-o-y.
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The main factor affecting the general picture of financial reports was the decline in the net profit of NJSC Naftogaz of Ukraine, which accounts for about 51% of the entire portfolio. Thus, in the first half of 2018, the net profit of Naftogaz shrank by 60.3% y-o-y, from UAH 27.7 billion ($999.6 million) to UAH 11 billion ($397 million).
"A significant share of the drop is associated with higher losses of [the state-run gas transport system operator] PJSC Ukrtransgaz, whose shares (100%) belong to NJSC Naftogaz of Ukraine, from UAH 1.6 billion [$57.7 million] to UAH 18.3 billion [$660.4 million]," the report said.
According to the ministry, the oil and gas sector, as well as the electric power industry remain the most profitable sectors for Ukraine's large state-run enterprises. Over the period under review, the enterprises of the electric power industry boosted their total profit by 12.2%, from UAH 7.6 billion ($274.3 million) to UAH 8.6 billion ($310.4 million).
The net profit of the state-run National Nuclear Energy Generating Company Energoatom jumped from UAH 1.6 billion ($57.7 million) to UAH 3.2 billion ($115.5 million), thanks to a reduction in operating expenses that are not part of production costs, as well as an increase in operating income non-related to product sales. Operator of Ukraine's wholesale electricity market Energorynok in 1H 2018 increased its profit from UAH 600 million ($21.7 million) to UAH 1.8 billion ($65 million) y-o-y, while the national energy company, Ukrenergo, upped its net profit by 17.9%, from UAH 1.9 billion ($68.6 million) to UAH 2.2 billion ($79.4 million).
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The country's transport industry saw a 17.6% decrease in net profit in 1H 2018, from UAH 2.7 billion ($97.4 million) to UAH 2.2 billion ($79.4 million). At the same time, Ukrainian state-owned railway operator Ukrzaliznytsia (Ukrainian Railways) saw profits almost 4 times higher y-o-y to UAH 0.47 billion ($17 million) against UAH 0.12 billion ($4.3 million).
As reported, the companies of the engineering industry over the six months reduced their total profit by 63.3%, from UAH 0.37 billion ($13.4 million) to UAH 0.13 billion ($4.7 million), which was mainly caused by a 48.3% decline (UAH 0.19 billion/$6.9 million) in the net profit of the state-owned turbine producer Turboatom.
Food industry enterprises reported a 58.8% drop to UAH 0.16 billion ($5.8 million).
At the same time, the country's chemical industry boasted higher net profits reaching UAH 0.41 billion ($14.8 million).
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Coal enterprises in the TOP 100 largest state-owned companies over the six months reported lower losses, sliding from UAH 2 billion ($72.2 million) to UAH 1.2 billion ($43.3 million) y-o-y.
As UNIAN reported earlier, the 100 largest state-owned companies in Ukraine posted UAH 44.4 billion ($1.6 billion) in net profit in 2017.
In 2016, the TOP-100 state-owned enterprises received UAH 26.4 billion ($952.7 million) in net profit, whereas in 2015 they declared UAH 53 billion ($1.9 billion) in gross loss.