Ukrnaftoburinnya will receive a profit of UAH 1.1 billion in 2023

According to the results of 2023, the Ukrnaftoburinnya private joint-stock company, according to preliminary data, will receive a net profit of UAH 1.1 billion.

This follows from a statement by the company, the Ukrainian News agency reports.

"We planned a net profit of up to UAH 1.5 billion. But due to the cancellation of the special permit and the shutdown, this indicator will drop to approximately UAH 1.1 billion," said the company's board chairman, Oleh Malchyk.

According to him, from the beginning of the year until the actual transfer of the company under the control of Ukrnafta (July 12, 2023), the profit amounted to UAH 186 million.

At the same time, for the period from July to December 2023, the company managed to get a profit of UAH 905 million.

"This is taking into account the fact that the company did not conduct mining for the whole of December last year. Despite the fact that the company was profitable even before the transition to state management, during the audit of the financial statements, UAH 18 billion of receivables were found, which had signs of being hopeless. This is either prepayment for some goods or financial assistance," said Malchyk.

According to him, bankruptcy procedures were initiated in June 2023 for certain companies that owe the National Bank of Ukraine almost UAH 5 billion.

"But the new management managed to submit applications for the recognition of monetary claims, and such claims were recognized by the court. As a result of these actions, Ukrnaftoburinnya was included in the list of creditors of those companies that are in a state of bankruptcy," said Malchyk.

As the Ukrainian News agency earlier reported, the State Geology and Subsoil Service filed an appeal against the decision of the Kyiv District Administrative Court, which obliged it to consider the application of Ukrnaftoburinnya for the issuance of a special permit for gas extraction at the Sakhalin field.

On December 1, 2023, Ukrnaftoburinnya stopped the production of natural gas and gas condensate at the Sakhalin oil and gas condensate field on December 1, 2023, due to the annulment of the special permit for the use of subsoil by the court.

At the same time, the production of the company Ukrnaftoburinnya amounted to 1.4 million cubic meters of gas per day until the forced stoppage of work on December 1, 2023, by a court decision.

In May 2023, the Cabinet of Ministers transferred the corporate rights of Ukrnaftoburinnya to the management of the largest oil production company, Ukrnafta.

In April, the Pecherskyi District Court of Kyiv transferred to ARMA the corporate rights of Ukrnaftoburinnya, which were seized as part of criminal proceedings.

Ukrnaftoburinnya carries out industrial development of the Sakhalin gas field and gas condensate.

In 2022, the company's gas production amounted to 415 million cubic meters (2.2% of total gas production in Ukraine).

Previously, Ukrnaftoburinnya was affiliated with businessmen Vitalii Khomutynnyk and Ihor Kolomoiskyi.