on NJSC "Naftogaz of Ukraine” Financial and Economic Activities

Due to massive information provocation and misinformation by the Ukrainian mass media the NJSC "Naftogaz of Ukraine” has to make the following statement:

The premeditated distortion of the actual data of financial and economic activities may compromise the Company in the eyes of our western partners and result in unpredictable consequences for energy and financial security of the state.

NJSC "Naftogaz of Ukraine” informs that according to the financial statement for the first quarter of 2009 the Company earned net income in the amount of UAH 32.1 bln. which is three times more than the net income earned for the respective period of 2008. The gross profit for the reporting period was UAH 3.2 bln., while for the first quarter of 2008 the Company incurred gross loss in the amount of UAH 0.9 bln. The profit before tax on ordinary activities was UAH 4.6 bln. which is almost five times more than profit on ordinary activities earned based on the results of the first quarter of 2008.

The Company’s financial position is also determined based on bond quotation of the NJSC "Naftogaz of Ukraine” in foreign markets. At the beginning of the year this figure was 35-40% of the Company bond face value. Today, NJSC "Naftogaz of Ukraine” bonds cost 90% of the face value. The market value of the Company’s bonds demonstrates its financial position which is currently high level trustworthy for western investors.

For the first four month of the current year according to operating data as of 10 May, 2009 the NJSC "Naftogaz of Ukraine” sold natural gas to Ukrainian consumers in the volume of 18.9 bln. cubic meters for the total amount of UAH 20.8 bln. Increase in receivables for this period has been UAH 3.2 bln., consequently, cash receipts for the sold natural gas has been UAH 17.6 bln. In addition, for the first four months of 2009 the NJSC "Naftogaz of Ukraine” obtained an indemnity from the state budget to compensate a difference between the imported natural gas purchase price and its sale price to the enterprises for production of heat power consumed by the population in the amount of UAH 3.3 bln. The total proceeds from the gas sale to Ukrainian consumers have been UAH 20.9 bln.

The funds obtained were used by the Company to settle accounts for the purchased imported natural gas within the period in the amount of 4.8 bln. cubic meters which is UAH 11.9 bln. The funds balance obtained from sale of natural gas was used by the Company for financing the value of maintenance of the national gas pipeline network in proper technical condition, settlements for the own gas, payment of tax obligations and settlements for the Company’s obligations in accordance with the current terms and conditions of loan agreements concluded with non-resident banks.

NJSC "Naftogaz of Ukraine” will review the so-called "analytical documents” religiously, carry out its legal analysis and if it would be necessary will apply to the appropriate authorities for protection of its interests.
 

Press Centre NJSC "Naftogaz of Ukraine”

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