Naftogaz publishes consolidated financial statement for first nine months of 2021

Naftogaz National Joint Stock Company "Naftogaz of Ukraine" has published its Unaudited Condensed Consolidated Interim Financial Statement for the first nine months of 2021, prepared in accordance with International Financial Reporting Standards (IFRS).

An audited consolidated financial statement for 2021 will be published in the spring of 2022.

In the unaudited statement for 9 months of 2021 published on December 10, a net loss of UAH 4.37 billion was recorded.

This is almost 4 times less than the losses recorded in the corresponding period for the previous year: during the first 9 months of 2020, Naftogaz received a net loss of UAH 17.03 billion.

The consolidated financial statement includes the results of Naftogaz Ukraine's activities as a separate legal entity and all enterprises controlled by the company.

It should be noted that the previously published the Naftogaz Standalone Financial Statements recorded a net profit of UAH 9.78 billion for 9 months of 2021. For the corresponding period last year, the net loss amounted to UAH 18.65 billion.

It should also be noted that, according to a consolidated financial statement audited in compliance with IFRS by an external auditor, the net loss in the first quarter of 2021 amounted to UAH 10.15 billion. In the second quarter of 2021, following a change in company CEO, the net profit amounted to UAH 8.50 billion. For the entire previous year, the net loss amounted to UAH 19.0 billion.

Naftogaz was profitable in 2019. However, without the profits from gas transit activities, for which current CEO Yuri Vitrenko was responsible, Naftogaz would have been unprofitable in 2019. Vitrenko left the company at the beginning of 2020 and returned as CEO in April 29, 2021.

"This shows that Naftogaz losses are a systemic problem, which until 2020 was hidden by successful gas transit activities, including success in the Stockholm Arbitration case. In 2020 and in the first quarter of 2021, there have been no comparable successes, so there has been nothing to cover systemic losses. We are now trying to solve this systemic unprofitability," commented CEO Vitrenko.

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