Naftogaz More Than Doubles Profit for 2024

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Naftogaz More Than Doubles Profit for 2024

Naftogaz Group on Thursday reported UAH 38 billion ($913.28 million) in net profit for last year, up 64 percent from 2023 as natural gas production grew. Its gas production unit, Ukrgasvydobuvannya, raised commercial gas output to 13.9 billion cubic meters (490.87 billion cubic feet) in 2024, up from 13.2 Bcm in 2023. The average daily […]

Naftogaz Group on Thursday reported UAH 38 billion ($913.28 million) in net profit for last year, up 64 percent from 2023 as natural gas production grew.

Its gas production unit, Ukrgasvydobuvannya, raised commercial gas output to 13.9 billion cubic meters (490.87 billion cubic feet) in 2024, up from 13.2 Bcm in 2023. The average daily production rate hit a three-year high, state-owned Naftogaz said in an online statement.

Gross profit increased to UAH 89.1 billion, up from UAH 48.5 billion for 2023. Operating profit climbed 32 percent to UAH 51.1 billion.

“All key business segments of the Group delivered growth”, acting chief executive Roman Chumak said.

Ukrgasvydobuvannya was Naftogaz’s biggest earnings contributor in 2024, with the subsidiary’s profit nearly doubling to UAH 20.9 billion.

Ukrnafta, Naftogaz’s oil production arm, generated UAH 17.3 billion in profit. Naftogaz’s transport unit, Ukrtransnafta, logged UAH 3.7 billion in profit.

“Companies in the gas supply sector also demonstrated positive performance”, Naftogaz said. “Gas Supply Company Naftogaz of Ukraine returned to profitability after a UAH 2 bn loss in 2023. The settlement rate rose by 10 percentage points to 98 percent.

“Gas supply company Naftogaz Trading reduced its loss by more than UAH 3 bn year-on-year. For the first time in years, the gas trading segment ended 2024 with a profit. The segment posted a net operating result of UAH 2.3 bn, compared to UAH 22.3 bn loss in 2023.

“Gas Distribution Networks of Ukraine also demonstrated growth, with distribution volumes reaching 12.3 bcm, up from just 3.8 bcm in 2023. Settlements for natural gas consumed reached 97 percent, an increase of 14 percentage points compared to the previous year”.

On April 23 Naftogaz said it will continue delivering natural gas to households at the current regulated rate under its fixed tariff plan. The price will remain at UAH 7.96 per cubic meter until April 2026 to reflect the current moratorium on raising gas tariffs, it said.

Meanwhile Naftogaz’s gas storage arm, Ukrtransgaz, recorded UAH 277 million in profit for 2024.

Its power and heat businesses also registered growth with sales rising 24 percent and 4 percent respectively last year. Naftogaz expects 177 megawatts in additional generation capacity from new projects.

Naftogaz paid the state UAH 104.3 billion in 2024, accounting for 7 percent of government revenue, it said.

On Wednesday Naftogaz announced the appointment of Sergii Koretskyi as group chief executive. Koretskyi, chief executive of Ukrnafta and Ukrtatnafta since 2022, will take on the new role May 14. Chumak will revert to being Naftogaz chief financial officer.

“The Supervisory Board conducted a worldwide search for our new CEO on a wholly independent basis, following the highest standards of corporate governance”, Naftogaz said. “We evaluated and interviewed a wide range of qualified candidates from both within and outside Ukraine before making our selection.

“With his combination of successful experience in both the SOE and private sectors, we are confident that Mr. Koretskyi will lead Naftogaz with great effectiveness through both the current wartime challenges and the coming post-war economic expansion”.

In other developments the company has secured a EUR 270 million ($306.46 million) loan from the European Bank for Reconstruction and Development (EBRD) and a EUR 140 million grant from the Norwegian government.

This support, to be disbursed via the EBRD, will be used to buy nearly 1 Bcm of gas, Naftogaz said.

“Cooperation with international financial institutions is central to Naftogaz’s long-term strategy to diversify supply and secure Ukraine’s energy stability”, it said.

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