01 November 2023, Wednesday, 18:02 225

Naftogaz sells part of buffer gas in H1

Editor: Daria Zubkova

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In the first half of 2023, the Naftogaz of Ukraine national joint-stock company sold part of the active gas, which acted as a buffer (the volume of gas in the underground storage, necessary to maintain the pressure that ensures technological integrity and efficient and safe operation of this storage).

This is stated in the company's financial report, Ukrainian News Agency reports.

"Until 2023, the buffer gas accounted for as part of the group's fixed assets included the company's active gas stored in underground gas storages and acting as a buffer. During the 6 months ended June 30, 2023, part of this active gas was released from buffer gas composition and sold, which led to a profit from the sale of non-current assets in the amount of UAH 11.448 billion, as well as the realization of capital in revaluations in the amount of UAH 10.346 billion and proceeds from the sale of fixed assets in the amount of UAH 22.849 billion," the report says.

It is noted that the sale of a part of the active gas, which acts as a buffer, took place as a result of the fact that during 2023 the company revised the assessment of the minimum necessary volumes of such gas, as well as the strategy for the use of natural gas in general.

"As the management plans to further sell active gas classified as buffer, the most profitable and best use of the asset has changed, in connection with which an assessment of the fair value of such gas has been carried out. As a result, the revaluation of gas in the amount of UAH 10.703 billion was reflected as part of other aggregate income," the report says.

At the same time, the buffer gas was valued at market value using the price on the Ukrainian Energy Exchange as of the reporting date, which is UAH 10,786 per thousand cubic meters.

The report does not indicate the volumes of gas that were sold.

As Ukrainian News Agency earlier reported, in January-June 2023, Naftogaz earned UAH 6.575 billion in net profit, while in the same period last year the company suffered a loss in the amount of UAH 57.2 billion.