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The financial results were affected by a decrease in the average-weighted selling price of crude oil and natural gas.
Ukraine's largest oil producer, Ukrnafta, in January-June 2019 (H1) saw its net profit shrink by 99% year-over-year (y-o-y), to UAH 18.2 million (US$712,887) from UAH 2.06 billion (US$80.7 million).
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Over the period under review, Ukrnafta also reduced its net revenue by 17.2%, to UAH 13.9 billion (US$544.5 million), the company said in its report for H1 2019.
"The following factors influenced the financial performance. During H1 2019, the average-weighted selling price of oil was US$60.4 per barrel, down by 10.1% y-o-y. The average-weighted selling price of gas declined by 18% y-o-y to UAH 7,409 [US$290] per 1,000 cubic meters," the report said.
"In the reporting period the capital investments reached UAH 749 million [US$29.3 million], up by 86% y-o-y. The company has significantly increased investments in new equipment as well as capital workovers. Nevertheless, the rate of investments remains insufficient, with the 2019 investment program targeting UAH 2.9 billion [US$113.6 million]," the company said.
As UNIAN reported earlier, Ukrnafta boosted its net profit by 63 times in 2018 from 2017, to UAH 6.438 billion (US$252.2 million).
UNIAN memo. Ukrnafta is the largest state-owned oil and gas company in Ukraine. It accounts for about 70% of oil and condensate production, and 11% of gas extraction in the country. Ukrnafta is one of the key players in the retail market for petroleum products in Ukraine: the company owns more than 560 fuel filling stations throughout the country.