In Q3 2020, amid unfavorable market conditions, economic downturn and quarantine restrictions, JSC Ukrgasvydobuvannya's (Naftogaz Group) profit amounted to 1.47 billion UAH. Thus, the company improved its key performance indicators compared to Q2 2020. The funds received will be invested in building up the hydrocarbon resource base and stabilizing the natural gas production.
For 9 months of 2020, Ukrgasvydobuvannya's net profit amounted to 1.77 billion UAH, with the operating profit amounting to 3.39 billion UAH.
The main contributor to the company's financial performance is the gas price. So, Ukrgasvydobuvannya's net product sales income decreased from 62.37 billion UAH for 9 months of 2019 to 37.12 billion UAH for 9 months of 2020.
“The company continues to fulfill the strategic tasks set by the government. Amid the crisis, we continue to maintain our planned gas production targets and remain among the largest contributors to the state budget. For 9 months of 2020, total treasury revenues from Naftogaz Group amounted to 87 billion UAH, of which 20.27 billion UAH account for Ukrgasvydobuvannya's tax payments. Since the beginning of the year, the amount of investment in production projects has reached 9.6 billion UAH. At the same time, in order to maintain production, the government must create favorable fiscal conditions and offer scope for the development of large promising oil and gas sites,” said Olena Kobets, CEO of JSC Ukrgasvydobuvannya.
As of 9 months of 2020, the production of commercial gas remains stable and amounts to 10.14 BCM. Deviation from similar indicators of the previous year is minus 0.5% or 47.8 MCM of blue flame gas.
Since the beginning of 2020, the divisions of Naftogaz Group have completed the following operations aimed at stabilizing production as part of the production program:
● drilling of 27 wells completed;
● 210 workover operations completed;
● 75 hydraulic fracturing operations completed;
● 551 coiled tubing operations completed;
● 4 gas treatment units reconstructed;
● 4 gas pipelines and 66.8 km of loops constructed.