In the first half of 2023, Naftogazvydobuvannya, the main production asset of DTEK Oil&Gas, increased investments in gas production development by 35% to almost UAH 1 billion amid a decline in financial performance compared to the same period of the previous year.
According to the company’s report on the stock exchange, the company continued to invest in development despite a 66% decrease in DTEK Oil&Gas’ net profit (to UAH 2.38 billion) and a 31.5% decrease in revenue (to UAH 13.11 billion) in the first half of 2023 compared to the same period last year.
It is noted that the funds were used to increase the drilling and exploration program to return to production growth in the medium term.
The company also reported that it paid more than UAH 5 billion in taxes to the state budget, including more than UAH 2.2 billion in rent for the use of subsoil, part of which (5%) is directed to local budgets.
DTEK Oil&Gas explained the decline in financial performance by the fall in gas prices in the 2023 market.
“In the first half of 2023, the main production asset of DTEK Oil&Gas increased its investments in gas production development by 35%. Last year, due to problems with gas sales, we were forced to reduce our drilling program. This year, the company is focusing on increasing the volume of drilling operations. In the next 2-3 years, this will allow us to return to the growth dynamics to further strengthen Ukraine’s energy security,” the company commented.
“DTEK Oil&Gas is the largest private gas producer in Ukraine. Its portfolio of assets includes Naftogazvydobuvannya and Naftogazrazrabotka, which are engaged in exploration and production of hydrocarbons in three license areas in Poltava and Kharkiv regions.
As reported, DTEK Oil&Gas increased its net profit by 70.6% to UAH 11.46 billion in 2022, with revenue growing 2.2 times to UAH 36.00 billion.
