Chief Financial Officer of National Joint-Stock Company Naftogaz of Ukraine, Peter van Driel, says the company in the first quarter of 2021 (Q1) received UAH 12.6 billion (US$454.4 million) in net profit, which was 4 times up year-over-year (y-o-y).

"Earlier we announced that we expected Naftogaz to be profitable in the first quarter. I am pleased to announce that the net income in the first quarter of 2021 is UAH 12.6 billion (unaudited preliminary result subject to further review). Net income for the same period in 2020 was UAH 3.2 billion [US$115.4 million]," he wrote on Facebook on May 5.

Read alsoNaftogaz: All Supervisory Board members file for resignationThe business environment, he says, shows clear signs of recovery with higher prices and more demand than last year.

"The expected result shows our resilience with three quarters in a row of improved profitability," he added.

Background

Last year, Naftogaz saw UAH 19 billion (US$685.2 million) in net losses, with the profit target set at UAH 11.5 billion (US$414.7 million).

Following the general meeting of shareholders, the performance of the Supervisory Board and the Board of NJSC Naftogaz of Ukraine in 2020 was recognized as "unsatisfactory."

On April 28, 2021, Ukraine's Cabinet of Ministers terminated the powers of members of the Supervisory Board of NJSC Naftogaz of Ukraine, as well as Chairman of the Board Andriy Kobolyev, while appointing Yuriy Vitrenko to that position.

The move followed consideration of the company's annual report for 2020.