Naftogaz estimates net losses at $1 billion in 2022

1 March, 05:42 PM
Naftogaz CEO Oleksiy Chernyshov (Photo:Naftogaz of Ukraine)

Naftogaz CEO Oleksiy Chernyshov (Photo:Naftogaz of Ukraine)

Ukraine’s national oil and gas company Naftogaz has reported a net loss of UAH 40 billion ($1 billion) in 2022, Naftogaz CEO Oleksiy Chernyshov said during the Business Breakfast Forbes weekly stream on March 1.

Chernyshov said the losses are largely related to significant receivables, which arose due to the state’s use of Naftogaz’s working capital to meet the needs of consumers regarding the supply of fuels.

The official clarified the main receivables owed to the company consist of three components: the difference in tariffs (UAH 36 billion ($984.4 million)), the debt of regional gas companies and gas suppliers (UAH 76 billion ($2 billion)), and special obligations for 2022-2023 (UAH 158 billion ($4.3 billion)).

Video of day

He noted the company was carrying out “certain restructuring to turn a ‘dead’ receivable into a working asset.”

Chernyshov also expressed confidence in the successful restructuring of the company’s 2022 and 2026 eurobonds.

“Naftogaz is in default with respect to eurobonds, certain obligations, which it is currently actively restructuring, offering bondholders very interesting conditions, and they have a motivation in the form of additional payments to go for restructuring,” he said.

“We’ll achieve this, I don’t see any problems in this.”

In January-June 2022, Naftogaz increased its net loss by UAH 35.509 billion ($971 million) against the same period in 2021, or UAH 57.159 billion ($1.5 billion).

We’re bringing the voice of Ukraine to the world. Support us with a one-time donation, or become a Patron!

Follow us on Twitter, Facebook and Google News

Ukraine Today
Fresh daily newsletter covering the top headlines and developments in Ukraine
Daily at 9am EST
Show more news