Naftogaz Group posted a net profit of UAH 12 billion in 2021 according to the consolidated financial statements of National Joint Stock Company “Naftogaz of Ukraine” approved by the company’s executive board on 17 May 2022.
“Under normal circumstances, state-owned companies should be profitable. Given the scale of Naftogaz, such a profit is not excessive allowing for the capital invested and its value. The latest data shows that Naftogaz would be profitable in 2021 even without gas transit. This is an important achievement. I would like to remind that in 2019, Naftogaz had record profits, but this result was achieved precisely due to transit,” noted Naftogaz CEO Yuriy Vitrenko.
In 2021, profits came primarily from production.
“However, not all segments of the business activities were profitable and this needs to be addressed. In particular, the import, trading and supply of gas were unprofitable activities due to state regulation and the decisions of the Regulator (the NEURC). Gas storage activity also failed to generate a profit partially due to the Regulator’s decisions,” explained Vitrenko.
In 2021 Naftogaz significantly exceeded the financial plan approved by the government, and increased payments to the state budget.
“The loss recorded in 2020 was abnormal, taking into account that it was a peaceful year. We have fixed the issues behind this loss. Unfortunately, when I left Naftogaz in Q2 2020, Naftogaz became loss-making. When I returned in Q2 2021, the company started making a profit again. I think it is normal for managers to try to make the company profitable and worry when there are losses,” added Vitrenko.
The newly published Naftogaz financial statements have been verified by independent auditors. Based on a Prozorro system auction, the Government approved PwC as the independent auditor for Naftogaz financial statements for 2021-2022.