In the face of a decline in gas prices, Ukrgasvydobuvannya maintains a profitable level. At the end of the 1st half of 2020, the company's net profit amounted to 301 million UAH, with the operating profit amounting to 1.7 billion UAH. During the same period, the company invested 6.9 billion UAH in the development of Ukrainian gas production, transferred 12.7 billion UAH in taxes to treasuries at all levels, as well as directed 576 million UAH to counter the coronavirus epidemic in Ukraine.
The key contributor to the financial results of Ukrgasvydobuvannya in the 1st half of the year was the decrease in the average gas selling price by 46% compared with last year. This led to a proportional decrease in net income from the sale of the company's products from 44.6 billion UAH in the 1st half of 2019 to 23.6 billion UAH in the 1st half of 2020.
At the same time, the company actually managed to maintain gas production despite the unfavorable market conditions. In the first half of 2020, the company produced 6.76 BCM of natural gas which was supplied to the population and district heating providers. The year-over-year variance is 0.8%. These results were achieved through the completion of 24 wells, 347 coiled tubing operations and 53 hydraulic fracturing operations. In addition, 62 workover operations were completed.
At the same time, the timing of the implementation of a number of new production projects was affected by the decrease in the mobility of contractors and the impossibility to timely conduct an environmental impact assessment due to the coronavirus pandemic, as well as the entry into force of the law on public procurement.
“Ukrgasvydobuvannya demonstrates stable production results and continues to invest in the production of its own gas for the country. In times of crisis, we manage to maintain our targets by focusing on high-potential projects and increasing operational efficiency. At the same time, along with Naftogaz Group, the company remains a key taxpayer to the treasuries at all levels, as well as one of the largest donors in the fight against COVID-19,” said Olena Kobets, CEO of JSC Ukrgasvydobuvannya.