Business news from Ukraine

Leaders of extractive industry earned 13% more in 2023

According to the Opendatabot Index, the leading companies in the extractive industry earned more than UAH 365 billion last year. Their total revenue grew by 13% compared to the first year of full-scale operations. More than half of the total revenue of the top companies is accounted for by 2 state-owned companies. Another 6 companies belong to Rinat Akhmetov’s SCM Group.

UAH 365.26 billion was the total revenue of the mining industry leaders in 2023, according to according to the Opendatabot Index. This is even 11% more than before the start of the full-scale war.

This year’s Index is led by state-owned Ukrnafta, which increased its revenue by 2.3 times in 2023 to UAH 95.17 billion. This is 26% of the total revenue of the top 10 extractive industries. In addition, Ukrnafta also made the largest profit among the top 10 companies: UAH 25.74 billion.

Last year’s leader, Ukrgasvydobuvannya, moved to second place. Despite the fact that the company managed to increase its revenue by 9%, its net profit decreased 19 times to UAH 3.14 billion in 2023. Ukrgasvydobuvannya’s main activity is natural gas production.

In total, these two state-owned companies earned half of the total income of the leaders of the extractive industry: UAH 189 billion.
Another 41% of the leaders’ revenue was shared by six companies of Rinat Akhmetov’s SCM Group: UAH 149.67 billion. Five of them made a net profit of UAH 32.35 billion. Only Central GOK suffered a loss of UAH 1.33 billion.
Among the SCM Group companies that increased their revenues in 2023 are Northern GOK (+44%), Svyato-Varvarinskaya Concentrator (+32%) and Pokrovskoye Mining Group (+14%). At the same time, revenues of Naftogazvydobuvannya and Central GOK decreased by 35% and 31%, respectively, and DTEK Pavlohradvuhillya decreased by 6%.
The Index also includes two companies, FERREXPO AG, associated with Konstantin Zhevago. Their total revenue for 2023 decreased by almost a third compared to 2022: Poltava Mining by 33% and Yeristovo Mining by 32%. However, these two companies managed to generate a combined profit of UAH 970.7 million.
In total, nine out of ten companies included in the Index managed to make a profit last year, amounting to UAH 62.11 billion. For comparison, in 2022, only 6 out of ten companies were profitable.
Who dropped out of the top?
This year’s Index did not include Inguletsky GOK, whose revenue decreased by 32%, and Ukrnaftoburinnya (-38%), which was previously part of the group of companies owned by Ihor Kolomoisky and became state-owned by a court decision. Currently, Ukrnaftoburinnya is managed by Ukrnafta.

https://opendatabot.ua/analytics/index-mining-industry-2024

 

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PJSC “Ukrnafta” signed a memorandum of cooperation with Deutsche Bank

PJSC Ukrnafta has signed a memorandum of cooperation with Deutsche Bank to attract financing for the construction of a gas-fired maneuverable generation facility, the company’s press service has reported.

In addition, the company signed a memorandum of understanding with Siemens Energy at the conference on Ukraine’s recovery held in Berlin. The agreement will help obtain expertise and develop new projects based on steam and gas turbines for combined heat and power generation.

“The most important issue now is to strengthen the Ukrainian energy system, which has been devastated by Russian attacks. Decentralization and increasing efficiency. “Ukrnafta has become part of this process. It is part of the company’s ESG strategy, particularly as an organic process of expanding the value chain. It is also important from the point of view of the company’s social responsibility,” said the company’s director Serhiy Koretskyi.

Earlier, Ukrnafta and Ukrhydroenergo said that EUR300m allocated by the European Bank for Reconstruction and Development (EBRD) to support Ukraine’s energy sector will be used to implement their projects to restore generating capacity by building new maneuverable generation.

As reported, Ukraine, with the help of partners, intends to build up to 1 GW of gas-fired maneuverable generation in 2024 and another 4 GW in the coming years.

“Ukrnafta” – the largest oil company in Ukraine, is the operator of the national network of gas stations of 537 stations, of which 456 are in operation. The company is implementing a comprehensive program to revitalize its operations and update the format of its network’s gas stations. Since February 2023, Ukrnafta has been issuing its own fuel coupons and NAFTACard, sold to legal entities and individuals through Ukrnafta-Postach LLC.

Ukrnafta’s largest shareholder is Naftogaz of Ukraine with a 50%+1 share stake. On November 5, 2022, the Supreme Commander-in-Chief of the Ukrainian Armed Forces decided to transfer to the state the share of corporate rights of the company owned by private owners, which is now managed by the Ministry of Defense.

“Ukrnafta” plans to build about 100 MW of gas generation

Ukrnafta, the second or third largest gas producer in Ukraine, has made a strategic decision to build gas generation and has already started to attract partners for this purpose, said Sergiy Koretsky, director of Ukrnafta, at the Ukraine Recovery Conference in Berlin (URC2024).

“At the first stage, it will be about 1 GW. For this year, we have a more optimistic and more realistic plan to build at least 100 MW,” he said during the URC2024 roundtable discussion on the issue of the fastest possible restoration of power generation in Ukraine.

Koretskyi said that Ukrnafta signed memorandums of understanding with Siemens Energy and Deutsche Bank on the sidelines of URC2024 to obtain expertise and develop new projects based on steam and gas turbines for combined heat and power generation, and to attract financing for the construction of gas-fired maneuvering generation.

At the same time, the Ukrnafta director noted that the company has more than enough liquidity on its accounts for the first stage and has a huge support from Ukrainian banks, while memorandums with Siemens and Deutsche Bank are aimed at the following parallel tracks for electricity generation from gas.

Koretsky recalled that Ukrnafta is also the largest oil producer in Ukraine, and after the government took over the company from Ihor Kolomoisky’s managers, the company generated $1 billion in EBITDA compared to net losses of $0.5 billion over the past 10 years.

The CEO added that an independent supervisory board was recently elected and Ukrnafta is now on the right track to implement its corporate, ESG and social responsibility strategies.

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“Ukrnafta” has transferred UAH 3.5 bln in dividends to state for 2023

Ukrnafta has transferred UAH 3.5 billion in dividends to Naftogaz of Ukraine based on its 2023 performance, the company’s press service said on Tuesday.

Taking into account the previously transferred dividends for the previous year, the company paid a total of about UAH 8 billion to another shareholder represented by the Ministry of Defense of Ukraine under this item.

“About UAH 8 billion has been transferred to the accounts and depositories of the company’s state shareholders – the Ministry of Defense of Ukraine and Naftogaz of Ukraine. The company is supporting the country’s economy and working for victory,” said Sergiy Koretsky, CEO of Ukrnafta.

As a reminder, in 2023, the company also paid UAH 25.7 billion in taxes and fees to the budgets of all levels.

As reported, in early February, the Cabinet of Ministers of Ukraine established that Naftogaz of Ukraine should allocate 95% of its net profit to dividends, and Ukrnafta – 30%, provided that 50% of the profit will be used for capital investments approved by the government in the company’s financial plan for 2024.

“Ukrnafta, in which Naftogaz owns 50%+1 share, announced that in 2023 it made a net profit of UAH 23.6 billion compared to a loss of UAH 1.1 billion in 2022.

Earlier, Naftogaz Group CEO Oleksiy Chernyshev said that in terms of dividend policy, Naftogaz would receive UAH 12.1 billion from Ukrgasvydobuvannya last year, UAH 6.6 billion from Ukrtransgaz, UAH 5.3 billion from Ukrtransnafta, and UAH 3.5 billion from Ukrnafta.

“Ukrnafta is the largest oil producer in Ukraine and operates a national network of 537 filling stations, of which 456 are in operation.
The company is implementing a comprehensive program to restore operations and update the format of its filling stations. Since February 2023, Ukrnafta has been issuing its own fuel coupons and NAFTAKarta cards, which are sold to legal entities and individuals through Ukrnafta-Postach LLC.

Ukrnafta’s largest shareholder is Naftogaz of Ukraine with a 50%+1 share. On November 5, 2022, the Supreme Commander-in-Chief of the Armed Forces of Ukraine decided to transfer to the state a share of corporate rights of the company owned by private owners, which is now managed by the Ministry of Defense.

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“Ukrnafta” launches black high-capacity drilling rig in Ukraine’s West

PJSC “Ukrnafta” has launched a black high-development well in Ukraine’s West, the company’s press-service announced on Tuesday.

According to its data, the result more than doubled the forecasted one: the well flow rate is 54 tons per day with the expected 22.6 tons.

The object was planned as an exploratory well with the purpose of discovering deposits of stratigraphic deposits at a depth of more than 1.2 km. The drilling works were performed by Navigator-Komplekt LLC selected through a tender on Prozorro. This is the first of three wells to be constructed by this contractor.

“Ukrnafta” received a high-yield well and, more importantly, a technology to increase production at a particular field. Acid fracturing (AHF) is included in the investment projects for the construction of all wells at this field,” said the company’s director Serhiy Koretskyy.

As reported, Ukrnafta in 2023 increased production of oil with condensate by 3% (by 39.9 thousand tons) compared to 2022 – to 1 million 409.9 thousand tons, gas – by 5.8% (by 60.4 million cubic meters), to 1 billion 97.4 million cubic meters.

The company’s strategic goal is to double its oil and natural gas production to 3 million tons and 2 billion cubic meters respectively by 2027.

“Ukrnafta, Ukraine’s largest oil producer, is the operator of a national network of 537 gas stations, of which 456 are operational. The company is implementing a comprehensive program to revitalize its operations and update the format of its network of gas stations. Since February 2023, Ukrnafta has been issuing its own fuel coupons and NAFTACard, sold to legal entities and individuals through Ukrnafta-Postach LLC.

Ukrnafta’s largest shareholder is Naftogaz of Ukraine with a 50%+1 share stake. On November 5, 2022, the Supreme Commander-in-Chief of the Ukrainian Armed Forces decided to transfer to the state the share of corporate rights of the company owned by private owners, which is now managed by the Ministry of Defense.

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“Ukrnafta” announced a tender for voluntary medical insurance of employees with a budget of 18.7 million UAH

The National Bank of Ukraine (NBU) on May 23 announced a tender for voluntary medical insurance of employees with an expected cost of UAH 18.709m for the purchase of the service, according to the Prozorro e-procurement system.
Applications for participation are accepted until 12.00 on May 31.
Tender security 561,275 thousand UAH.
As reported, the winner of a similar tender for VHI announced by “Ukrnafta” on May 25, 2023 with the expected cost of procurement of services of 12.048 million UAH was SG “TAS” with a proposal of 10.819 million UAH, in connection with which July 7 with it was concluded a contract for VHI.

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