Cabinet Approves Naftogaz 2020 Financial Plan With UAH 11.5 Billion Profit

The Cabinet of Ministers approved the financial plan of the Naftogaz of Ukraine national joint-stock company for 2020 with a net profit of UAH 11.489 billion.

This decision was made at a meeting of the Cabinet of Ministers on Wednesday, December 23, Ukrainian News Agency reports.

According to the explanatory note, the approved financial plan for 2020 provides for half a net income of UAH 112.023 billion.

In turn, according to the approved financial plan, payments to the state in 2020 will amount to UAH 58.113 billion.

At the same time, Finance Minister Serhii Marchenko announced a list of comments to the draft financial plan of Naftogaz.

In particular, the financial plan provides for a net profit of UAH 11.5 billion in 2020, but for the first nine months of 2020 the company received a UAH 17 billion loss.

He also added that it is necessary to revise the income and expenditure side of the financial plan, taking into account the violations that were discovered by the state audit service.

"The volume of gas production by UkrGasVydobuvannya is taken into account, which does not correspond to the volume that was determined by the concept of development of the gas production industry, because the concept provides for the production of 21 billion cubic meters of gas, while the financial plan provides 13.3," Marchenko said.

He also added that it is necessary to revise the wage fund, which will increased more than double.

Marchenko stressed that the financial plan envisages an increase in the salary of board members by 56% and the salary of an ordinary employee by 85%.

In turn, the Cabinet of Ministers adopted this resolution without taking into account the comments of the Ministry of Finance.

As Ukrainian News Agency earlier reported, in January-September 2020, the Naftogaz group received a net loss of UAH 17.034 billion, while for the first nine months of 2019 the group received a profit of UAH 21.309 billion.

In 2019, the Naftogaz Group increased its net profit 5.5 times or by UAH 51.7 billion to UAH 63.3 billion, of which UAH 55.7 billion was received from Gazprom (Russia) based on the results a positive decision in arbitration under a transit contract.

The Naftogaz of Ukraine national joint-stock company is a leading enterprise in the country's fuel and energy complex, which is engaged in exploration and development of fields, drilling, storage of oil and gas, transportation of oil, as well as supplying gas to consumers.