Ukrgasvydobuvannya received UAH 301 million in profit in the first half of 2020
Ukrgasvydobuvannya (UGV), which is part of the Naftogaz Exploration and Production Division, received a net profit of UAH 301 million in the first half of 2020, and an operating profit of UAH 1.7 billion. This is reported by the company’s press service.
During the same period, the company invested UAH 6.9 billion in the development of Ukrainian gas production, transferred UAH 12.7 billion in taxes to budgets of all levels, and also allocated UAH 576 million to counteract the coronavirus pandemic in Ukraine. UGV’s financial results in the first half of the year were affected by a 46% decrease in the average gas sales price compared to the same period of the previous year. This led to a proportional decrease in net income from sales of the company’s products – from UAH 44.6 billion in the 1st half of 2019 to UAH 23.6 billion in the 1st half of 2020.
At the same time, for 6 months of 2020, 6.76 billion cubic meters of gas were produced, which Naftogaz Group supplied to the population and fuel and energy companies, which is 0.8% less than last year. Such results were achieved from the commissioning of 24 wells, as well as 347 CT operations and 53 HF operations. In addition, 62 major well workovers were performed.
The timing of the implementation of new production projects was affected by a decrease in the mobility of contractors and the inability to conduct a timely environmental impact assessment procedure due to the coronavirus pandemic, as well as the entry into force of the law on public procurement.