Naftogaz released unaudited consolidated financial statements as at and for the nine months ended 30 September 2017. The document is available under this link. The Group posted a net profit of UAH 27.1 bln (approximately US$ 1.0 bln) for the 9 months of 2017. This is a 15% increase over the same period of 2016, mainly due to increased gas transit volumes. A detailed review of the 9M 2017 results is available here.
Profitable segments:
- gas upstream showed a net profit of UAH 27.8 bln compared to UAH 10.4 bln result shown for the 9 months of 2016.
- gas transmission and distribution for the 9 months of 2017 contributed UAH 25.2 bln or 37% more than in prior year. That is partially due to the increased gas transit volumes and devaluation of Ukrainian hryvnia against US dollar.
The Group’s also achieved profit for the 9 months of 2017 in the crude oil and gas condensate refinery and oil transportation segments.
Loss-making segments:
- the Group incurred a loss of UAH 8.1 bln from gas trading and supply segment, including loss from gas sales under public service obligations (PSO) of UAH 10.9 bln. Gas sales to other customers beyond PSO contributed UAH 0.1 bln profit, excluding the elimination of intersegment profits from gas sales to other segments of UAH 2.7 bln.
Gross trade accounts receivable during the 9 months 2017 decreased by UAH 7.5 bln, mainly in the district heating companies for the needs of households. This change reflects seasonality between natural gas consumption and budget settlements for subsidies.
Loss in the gas storage segment amounted to UAH 1.8 bln, that is 7% higher than for the 9 months of 2016. Oil and gas condensate upstream segment resulted in loss of UAH 0.1 bln.
Subsidies
The total volume of subsidies to lower-income consumers financed by the government during the 9 months of 2017 amounted to UAH 42.8 bln, 101% higher than in the same period of 2016 due to increased cost of subsidized goods and services as well as a higher number of subsidy recipients. A major share of subsidies were used by households (65%) and district heating companies producing heat for households (24%). As at 1 October 2017 the outstanding amount of subsidies due to Naftogaz from the State amounted to UAH 9.8 bln.
Taxes and payments to the budget
During the 9 months of 2017 Naftogaz Group paid UAH 78.1 bln in taxes, a 78% increase over the same period of 2016. VAT constituted 45.5% of this amount (45.7% for the 9 months of 2016). Subsoil royalties for gas, oil and gas condensate made up 37% of total taxes paid (same share as for the 9 months of 2016).
In addition, Naftogaz Group has paid UAH 13.3 bln in dividends and UAH 2.4 bln in prepayment of corporate income tax to the State budget. In total, dividends and taxes paid to the State budget by Naftogaz Group exceeded UAH 91.4 bln during the 9 months of 2017.
Naftogaz