Naftogaz boosts net profit by 15% in nine months

"The group posted a net profit of UAH 27.1 billion (approximately US$1.0 billion) for the nine months of 2017. This is a 15% increase over the same period of 2016, mainly due to increased gas transit volumes," it said.

Gas upstream segment over the period under review showed a net profit of UAH 27.8 billion ($997.8 million) against UAH 10.4 billion ($373.3 million) y-o-y.

Read alsoDecision by Stockholm Arbitration saves Ukraine from paying $ 56 bln to Gazprom - Naftogaz"Gas transmission and distribution sector for the nine months of 2017 contributed UAH 25.2 billion ($904.5 million) or 37% more than in prior year," the company said, adding that that the crude oil and gas condensate refinery and oil transportation segments were also profitable.

According to the company, gas trading and supply segment, including gas sales under public service obligations (PSO) remain loss-making.

Naftogaz incurred a loss of UAH 10.914 billion ($391.7 million) from sales under PSO, while gas sales to other customers beyond PSO (industrial consumers in the free market) contributed UAH 127 billion ($4.6 billion) in profit.

"Loss in the gas storage segment amounted to UAH 1.8 billion ($64.6 million), that is 7% higher than for the nine months of 2016. Oil and gas condensate upstream segment resulted in a loss of UAH 0.1 billion ($3.6 million)," the company said in a statement.

As UNIAN reported earlier, Naftogaz received UAH 26.5 billion ($951.2 million) in net profit in 2016 against a UAH 27.7 billion ($994.3 million) in net loss in 2015.

In the middle of July, Naftogaz CEO Andriy Kobolyev said that regional gas companies owed Naftogaz UAH 30 billion, or $1.1 billion, for gas received on special obligations.

UNIAN memo. NJSC Naftogaz of Ukraine is the largest state-run vertically integrated oil and gas holding whose subsidiaries account for about 90% of oil and gas production in Ukraine. Naftogaz develops oil and gas fields, produces crude oil and natural gas. Its core business is also transportation and trade in fuel through its own network of filling stations.