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The cost of gas output is even higher for private companies, Kobolyev said.
CEO of NJSC Naftogaz of Ukraine Andriy Kobolyev says the cost of natural gas production, including capital investment and all related costs for the development of gas extraction for Ukraine's largest state-owned gas producer Ukrgazvydobuvannya, which is part of Naftogaz, is estimated at US$250 per 1,000 cubic meters.
"The total cost of gas production, except for credit funds, which includes capital investment and funds for development, drilling, and land acquisition [for Ukrgazvydobuvannya], but excluding transportation and taxes, is about $250 per 1,000 cubic meters," he told a Ukrainian TV channel on January 19.
According to Kobolyev, the cost of natural gas production is even higher for private companies.
Read alsoUkrgazvydobuvannya boosts gas output to almost 15.5 bcm in 2018
As UNIAN reported earlier, Ukrgazvydobuvannya in January-September 2018 reduced its net profit by 12.2% to UAH 21.2 billion ($756.3 million). The company's net revenue from sales for the nine months increased by 1.2% to UAH 56.4 billion ($2 billion).
Ukrgazvydobuvannya's net revenue over the period under review increased by 1.2% to UAH 56.42 billion ($2 billion), while its gross profit shrank by 9.47%, to UAH 28.28 billion ($1 million), according to the company's report.
The company's net profit indicator is less than in 2017 due to the growth in its operating expenses to fulfill the program to boost gas production.
UNIAN memo. Ukrgazvydobuvannya is Ukraine's largest gas producer, holding a 70% share in the total volume of the country's hydrocarbon production. The company includes four gas industry departments: Shebelynkagazvydobuvannya, Poltavagazvydobuvannya, Kharkivgazvydobuvannya, and Lvivgazvydobuvannya. It is wholly owned by national oil and gas holding Naftogaz of Ukraine.