13:54 26.10.2016

Ukrnafta posts UAH 427 mln of net profit in Jan-Sept

2 min read
Ukrnafta posts UAH 427 mln of net profit in Jan-Sept

Public joint-stock company Ukrnafta saw UAH 427 million of net profit in January-September 2016, and this was 89.5% less year-over-year, the company has said in a report.

According to Board Chairman Mark Rollins, the indicator for January-September 2015 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 shows a 71% fall in the company's profit in January-September 2016.

The company's net revenue over the period declined by 27%, to UAH 15.301 billion.

"Net revenue fall in the first nine months of 2016 year-over-year is linked to a decline in oil prices early 2016 and the reduction of production. In Q3 2016, net revenue grew along with restoration of oil prices," he said.

In July-September 2016, net revenue of Ukrnafta grew by 17.2%, to UAH 6.406 billion year-over-year.

The pace of net profit in Q3 2016 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 UAH 437 million compared to UAH 2.445 billion of net loss a year ago. Without it, net profit grew by 2.9 times, to UAH 437 million.

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.

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