Naftogaz boosts net profit by 5.5 times in 2019

National Joint-Stock Company Naftogaz of Ukraine says it received UAH 63.3 billion (US$2.3 billion) in net profit in 2019, which was 5.5 times up against the figure posted in 2018.

"We have delivered a strong cash flow performance in 2019. We generated UAH 110 billion [US$4 billion] in cash flow from operating activities, including UAH 55.7 billion [US$2 billion] from the Gas Transit Arbitration (net of income tax), and distributed over UAH 20 billion [US$739,372] in dividends to our shareholder the State of Ukraine," the company's press service quoted Naftogaz Chief Financial Officer Peter van Driel as saying on April 28.

Read alsoUkraine may earn up to US$3 mln per month on fuel storage – Naftogaz CEO

Naftogaz Group's adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) in 2019 decreased by 28%, to UAH 65 billion (US$2.4 billion), while capital expenditures totaled UAH 24.9 billion (US$920,518), which was 11% up from 2018. The group of companies' net debt shrank by 2%, to UAH 42.6 billion (US$1.6 billion), according to the press service.

"We have seen lower volumes and gas prices in the fourth quarter of 2019, and we expect the macroeconomic environment to continue to be challenging in 2020," Peter van Driel said.

"We have identified cost reductions and remain committed to capital discipline. Our balance sheet is robust with relatively low leverage and we are well-positioned for a prolonged downturn," he added.

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.