Naftogaz ends 2020 with net loss of UAH 19 bln, returns to profit-making in 2021 – company

NJSC Naftogaz Ukrainy reported consolidated net loss was UAH 19.002 billion in 2020, compared with a net profit of UAH 63.294 billion in 2019, reflecting lower demand and gas prices, and material provisions for bad debts, the company said on Tuesday on its website.

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, the company said in its press release.

"The company bottomed out and started generating profit," Executive Board Chairman Andriy Kobolev said at the presentation of the results.

He said that following the results of the first quarter, Naftogaz will receive a net profit, but refused to name it due to restrictions associated with a possible issue of eurobonds.

In a press release, the company said that the underlying profit for the full year, excluding provisions for bad debts and other unusual items, was UAH 3.2 billion.

Naftogaz said that in the fourth quarter of 2020, the loss amounted to UAH 2.0 billion, compared with a loss of UAH 10.3 billion over the same period in 2019.

"The company has entered into a period of improved profitability with an expected underlying profit in the first quarter of 2021," the company said.

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%).

In terms of segments, in 2020, sales revenue and adjusted EBITDA was the following: commerce (UAH 75.476 billion/UAH 15.718 billion), exploration and production (UAH 55.875 billion/UAH 27.99 billion), gas transit arrangement services (UAH 46.724 billion/UAH 1.722 billion), Ukrnafta (UAH 35.535 billion/UAH 9.628 billion), oil midstream and downstream (UAH 11.501 billion / UAH 2.052 billion), gas storage (UAH 5.147 billion/UAH 3.285 billion), others (UAH 1.857 billion/ – UAH 5.596 billion), elimination (-UAH 72.881 billion).

Geographical concentration of sales was the following in 2020 and 2019: Ukraine (UAH 104.266 billion/UAH 143.168 billion), Russia (UAH 49.91 billion/UAH 3.377 billion), Europe (UAH 4.837 billion/UAH 2.868 billion), Egypt (UAH 0.209 billion/UAH 0.354 billion), and the United States (UAH 0.012 billion/UAH 0.014 billion).

Source: www.en.interfax.com.ua