National Joint-Stock Company Naftogaz of Ukraine in January-March 2020 (Q1) posted UAH 3.2 billion (US$119.4 million) in net profit, which was 80% down year-over-year (y-o-y).

"Naftogaz Group reports consolidated net profits of UAH 3.2 billion after tax for the three months ended March 31, 2020," the company's press service said on its website on June 2.

Read alsoNaftogaz to cut gas prices for industry by almost 20.7% from June 1

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Over the period under review, the group of companies produced 3.9 billion cubic meters (bcm) of natural gas, while 6.3 bcm was sold. Cash flows generated by operating activities amounted to UAH 10.9 billion (US$406.7 million).

Total taxes paid to the national budget in Q1 exceeded UAH 24.1 billion (US$899.3 million), the report said.

"We are facing challenging circumstances with the COVID-19 crisis and the macroeconomic environment, with a sharp decline in gas prices this quarter," the press service quoted Naftogaz Chief Financial Officer Peter van Driel as saying in June 2.

"Cash flow from operating activities for the first quarter was UAH 10.9 billion [US$406.7 million], compared with UAH 28.0 billion [US$1 billion], excluding discontinued operations, for the same period a year earlier. The result reflected lower gas prices and demand. We are lowering our spending and remain committed to capital discipline. Our balance sheet is robust with gearing at 12.4%," 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.