Public joint-stock company Ukrnafta saw 427 million UAH of net profit in January-September, down by 89.5% YoY, the company has said in a report.
According to Board Chairman Mark Rollins, the indicator for January-September should be revised for the correct calculation of the profit pace. The cross clearing transaction is to be taken into account; the cost of gas was used to pay dividends to national joint-stock company Naftogaz Ukrainy for 2011-2013 (Naftogaz Ukrainy does not recognize this transaction).
Rollins said that the revised profit pace showed a 71% fall in the company’s profit in January-September.
The company’s net revenue over the period declined by 27%, to 15.301 billion UAH.
“Net revenue fall in the nine months of 2016 YoY is linked to a decline in oil prices in early 2016 and the reduction of production. In Q3 net revenue grew along with restoration of oil prices”, he said.
In July-September net revenue of Ukrnafta grew by 17.2% YoY, to 6.406 billion UAH.
The pace of net profit in Q3 presented by Ukrnafta in the report and announced by Rollins differs due to the cross clearing transaction. Taking into account this transaction, net profit of Ukrnafta in July-September was 437 million UAH compared to 2.445 billion UAH of net loss a year ago.
Naftogaz Ukrainy owns a 50% plus one share stake in Ukrnafta, a group of companies associated with the shareholders of PrivatBank (Dnipro) holds about 42% of the shares. (Interfax/Business World Magazine)