Economy 2024-02-15T07:10:37+02:00
Ukrainian news
Kobolev Attributes Loss Of Naftogaz In H1 With Decline In Gas Prices In Europe

Kobolev Attributes Loss Of Naftogaz In H1 With Decline In Gas Prices In Europe

gas, Naftogaz, Naftogaz of Ukraine, Kobolev, loss, Andrii Kobolev, gas price

Andrii Kobolev, board chairperson of the Naftogaz of Ukraine national joint-stock company, attributes the loss of Naftogaz in the first half of 2020 with a decrease in gas prices in Europe.

He wrote about this on Facebook, Ukrainian News Agency reports.

"Gas prices in Europe (NCG) have dropped 58% since the beginning of the year to record lows. It would be naive to think that the same fate will bypass Naftogaz. Decrease in demand and prices for energy resources affected all segments of our business. We fixed loss in reporting for the first half of the year," Kobolev wrote.

He stressed that Naftogaz has a balanced plan of action and a sufficient margin of safety to pass the crisis period.

In particular, the company cut capital investments by 50%.

"Also, the financial condition of Naftogaz will significantly improve if the situation with the debts of regional gas companies, gas sales companies and district heating companies are settled fairly, without pre-election populism and in favor of the state company. Now the debt of these enterprises is about UAH 100 billion," Kobolev stressed.

At the same time, he added that incentive rent for production, simplification of permits, opening up access to the Black Sea shelf and signing production sharing agreements (PSA), tenders for which were held a year ago, could significantly improve the results of the gas production segment.

As Ukrainian News Agency earlier reported, the Naftogaz of Ukraine national joint stock company attributes its losses of UAH 11.541 billion in the period of January-June 2020 to the negative EBITDA (profit before taxes, interest and depreciation) of UAH 11.309 billion at the Ukrnafta oil company and the Commerce division.

Naftogaz of Ukraine is the leading company in Ukraine in terms of exploration and development of oil and gas deposits, drilling, transportation, and storage of crude oil and natural gas, and supply of natural gas to consumers.