Business news from Ukraine


Head of the Naftogaz Group’s Commerce Division and Director General of Naftogaz Trading gas supplying company Willem Coppoolse has decided to leave the company, Naftogaz said in a Friday press release.
Otto Waterlander will be acting Head of the Naftogaz Group’s Commerce Division.
Iryna Zhuravliova has been appointed acting director general of Naftogaz Trading.



According to the results of January-March 2021, NJSC Naftogaz Ukrainy received a net profit of UAH 12.6 billion, which is almost four times more than in the first quarter of last year (UAH 3.2 billion), said the Group’s Chief Financial Officer Peter van Driel. “We previously stated that we expect Naftogaz to be profitable in the first quarter. I am pleased to announce that net profit in the first quarter of 2021 is UAH 12.6 billion (unaudited preliminary result, which is subject to further verification),” he wrote on his Facebook page.
The business environment is showing clear signs of recovery with higher prices and greater demand than last year, he said.
“The expected result shows our resilience: profitability has improved for three quarters in a row. Our transformation efforts are paying off. The Naftogaz team has stepped up this quarter and showed an outstanding result! I want to thank everyone for their great contribution,” he said.



Naftogaz Group reduced capital expenditures (capex) by 44.5% (or by UAH 12.193 billion) in 2020 compared to 2019, to UAH 15.044 billion.
As indicated in the consolidated statements of the group published on Tuesday, capex of the exploration and production segment was UAH 11.023 billion (a fall of 26.2% to 2019), oil midstream and downstream – UAH 1.185 billion (a fall of 35.4%), Ukrnafta – UAH 1.113 billion (a fall of 23%), gas storage – UAH 0.143 billion (a rise of 3.3 times), commerce – UAH 0.133 billion (a rise of 11.1 times), other – UAH 1.448 billion (a fall of 83.8%).
As reported, the consolidated net loss of NJSC Naftogaz Ukrainy in 2020 amounted to UAH 19.002 billion compared to a net profit of UAH 63.294 billion in 2019. Excluding the results of the discontinued operations, including the Gas Transit Arbitration award of UAH 55.7 billion, the net profit was UAH 2.6 billion.
Naftogaz’s revenues in 2020 grew by 27.1% (by UAH 41.184 billion) compared to 2019, to UAH 193.017 billion, including income from sales being UAH 159.234 billion (a rise of 6.3%), compensation for performing public service obligations totaling UAH 32.205 billion (a rise of 100%), and interest and other income reaching UAH 1.578 billion (a fall of 23.1%).
The net loss of NJSC Naftogaz Ukrainy, as a separate legal entity, in 2020 amounted to UAH 18.002 billion versus UAH 50.658 billion of net profit for 2019. Net income last year decreased 32.1% compared to 2019, to UAH 121.059 billion.

, ,


At the beginning of April this year, Petrosannan Company – a joint operating company of NJSC Naftogaz Ukrainy and the Egyptian General Petroleum Corporation – performed hydraulic fracturing work on pilot wells in the concession area in the Western Desert of the Arab Republic of Egypt, thanks to which oil production increased more than 20%, or 600 barrels per day. According to a press release from the Integrated Communications Department of NJSC Naftogaz Ukrainy on Monday, provided that the achieved production volumes and current oil prices ($60 per barrel) are maintained, Naftogaz Group will thus receive additional income of $400,000 per month.
“Only the start of the current well stimulation campaign has allowed us to increase our oil production by 20%. We are planning to use this experience in the future, in particular, hydraulic fracturing of the wells, at other sites operated by Naftogaz Group in the Arab Republic of Egypt,” First Deputy Head of Naftogaz Serhiy Pereloma said.
Naftogaz Group implements hydrocarbon exploration and production projects in the Alam El Shawish East area in the Western Desert and South Wadi El Mahareeth and Wadi El Mahareeth areas in the Eastern Desert of Egypt.

, , ,


Naftogaz group and Polish Oil and Gas Company (PGNiG) have signed a memorandum of understanding. The partners will jointly consider the possibility of putting together experience and resources to implement a number of projects, primarily in Western Ukraine.
“Naftogaz and PGNiG will primarily focus on exploring opportunities for joint exploration of greenfield areas in Western Ukraine, bordering Poland. In particular, the partners shall allow for cooperation in Berestyanska area, where Naftogaz signed a production sharing agreement with the government at the end of 2020,” the group said in a press release.
Naftogaz said that as part of its strategy approved in 2020, Naftogaz started implementing strategic projects to increase the resource base within the Black Sea shelf, Yuzivska area, the Carpathian region and new areas for which PSAs were concluded.
“By attracting international partners, we intensify the rate of progress of unlocking Ukraine’s resource potential. PGNiG is a public company with high standards that has discovered and is successfully developing a number of fields in Europe. In particular, PGNiG has proven track-record of discoveries and efficient gas production in Poland, in the region bordering Ukrainian Carpathians. At the same time, it has already successfully accomplished projects on expanding its gas producing business to other countries, including strong position in Norway. I am confident that we will be able to achieve mutually beneficial synergy,” Chief Operating Officer of the Naftogaz Group Otto Waterlander said.
“Ukraine, which has one of the largest gas reserves in Europe, offers a very attractive growth potential for upstream companies like PGNiG. We are particularly interested in gas production development in Western Ukraine. This region borders with our operations area in Poland, and our data confirms its potential. Naftogaz has been working there for many years and has considerable experience and valuable geological data,” Vice President of the Management Board of PGNiG SA, Chief Operating Officer Robert Perkowski said.

, , ,


Gas supply company Naftogaz Ukrainy in April will keep the price of natural gas for household consumers (population) at the current level of UAH 6.86 per cubic meter, and the price of gas within the supplier of “last resort” for the next month will also remain at the March level of UAH 6.99 per cubic meter.
“We are going to offer our clients the same price in April as they had in March. And thus we end the heating season with a stable price,” he said on the air of Channel 5 on Wednesday evening.
At the same time, Kobolev did not say what fixed price the group is ready to offer under an annual contract, which will begin on May 1, 2021, to both the population and wholesale buyers.
“This price has not been determined yet. We have signed the first big contract [with Dmytro Firtash’s Ye Energiya LLC], which contains a pricing formula. The price will be known for sure on April 25 this year,” said the head of Naftogaz.
Kobolev also said that the group’s market share increased by 11 p.p. – up to 13% from August 2020 to the present day.

, , ,