Ukraine’s Naftogaz shows improvement in H1 revenue
Ukrainian state gas producer Naftogaz reported October 28 that net revenue during the first half of the year was up 46% from the same period in 2020.
Naftogaz issued an interim report on its performance for the first six-month period of 2021. Revenue was $3.85bn, with natural gas trading and supply accounting for the vast majority of the growth.
“The results for H1 2021 are far better compared to those for the same period in 2020,” the company stated.
The company is not without its problems, however. Ukraine's cabinet of ministers took on the duties of the gas supplier's supervisory board after the resignation of three of its independent directors.
Ukraine hosts a network of Soviet-era pipelines that deliver natural gas to Europe. Efforts to break Russia’s grip on the regional energy sector have led to diversification on the supply side, but have starved Ukraine of the transit fees it would otherwise receive.
The Nord Stream pipeline network through the Baltic Sea to Germany is one such diversification option. Naftogaz has filed a request with German energy regulator Bundesnetzagentur to take part in the certification process of the second string of the Russian pipeline, dubbed Nord Stream 2, which for all intents and purposes is already in service.
Alexander Paraschiy at Ukrainian investment firm Concorde Capital said the results were very strong, but Naftogaz may be forced to sell its natural gas at a discount at a time when European consumers are fretting over short supplies and higher prices.
“For these reasons, Naftogaz will do all its best to show a net profit for the year,” he said in a statement.