Government takes into account payment for utilities in installments in 2016 Naftogaz financial plan
The Ukrainian government on Wednesday approved a financial plan of national joint-stock company Naftogaz Ukrainy for 2016, foreseeing compensation related to the decision to permit households to pay 50% of the utilities bills in installments in the heating period made earlier, Ukrainian Finance Minister Oleksandr Danyliuk has said.
"It was decided to permit payment in installments for utility services. The decision had its cost… We have found a financial scheme permitting Naftogaz to work normally in these conditions," he said after a government meeting in Kyiv.
Danyliuk said that this year net revenue of Naftogaz is projected at 35.6%, to UAH 152.95 billion, gross profit – at 3.3 times, to UAH 41.23 billion and earnings before interest, taxes, depreciation and amortization (EBITDA) – at 5.3 times, to UAH 36.82 billion.
It is anticipated that Naftogaz would see UAH 21.13 billion in net profit in 2016 after net loss of UAH 25.1 billion seen last year.
The company's debt on long-term loans this year would narrow by UAH 3.32 billion, to UAH 31.57 billion with expansion of short-term loan debt by UAH 9.23 billion, to UAH 36.03 billion. Capital investment would increase ten-fold, while their volume would remain small – UAH 310 million.