Naftogaz posts UAH 22.5 bln in net profit in 2016 - consolidated report

NJSC Naftogaz of Ukraine has posted UAH 22.532 billion in net profit as of the end of 2016 compared to UAH 35.062 billion in net loss in 2015, the group's consolidated report said on Friday.

Sales revenue in 2016 increased by 48%, by UAH 62.497 billion, to UAH 192.764 billion, gross revenue soared by 8.4 times, by UAH 62.503 billion, to UAH 70.96 billion, the document, audited by Deloitte, said.

Naftogaz said in a follow-up press release that the gas transmission and distribution segment generated the major share – over UAH 26 billion – of the last year's profit. Other profitable segments included gas production (UAH 15.3 billion), oil refining (UAH 1.7 billion) and oil transportation (UAH 1.6 billion).

The following segments generated loss in 2016: oil and condensate production (UAH -6.8 billion), gas trading (UAH -3.5 billion) and gas storage (UAH -1.6 billion). Provisions for litigations, part of forex loss and other unallocated expenses of the group amounted to UAH 11.9 billion.

"Naftogaz has become profitable for the first time in the past five years, requiring no support from the state budget for the first time in the past decade. Our group is the largest taxpayer in Ukraine: we paid UAH 74 billion to the state budget (10% of its revenue), in contrast to 2014 when Naftogaz accounted for nearly 25% of the state budget expenditures. We ensure not only reliable gas supply to Ukrainian households but also its sufficiency for all other consumer categories, even in extremely difficult circumstances. These are the major results of three years of our team's work," the statement quoted Naftogaz CEO Andriy Kobolev as saying

Naftogaz Ukrainy unites oil and gas production assets in Ukraine, and is the country's gas transit, underground gas storage, and oil pipeline transportation monopoly.