Ukrnafta expects net profit to fall 25% in 2024

MOSCOW. March 7 (Interfax) - Ukraine's Cabinet has approved the 2024 financial plan of Ukrnafta, the country's largest oil producer, targeting a net profit of UAH 18 billion (about $469 million at the current exchange rate) on net revenue of UAH 118 billion (about $3.1 billion), Ukrainian media reported, citing the company's statement.

The plan also projects that the company will pay UAH 31 billion in taxes and fees this year and UAH 8.7 billion in dividends to the government.

Ukrnafta earned a net profit of UAH 24 billion in 2023 and paid UAH 26 billion in taxes and fees. It will also pay the government more than UAH 8 billion in dividends for last year.

The company therefore expects net profit to fall 25% this year.

Ukrnafta is planning to significantly increase investment in development in 2024, company CEO Sergei Koretsky said in the press release. The company plans to start drilling 30 new wells, buy and install world class equipment to intensify extraction and update its chain of filling stations, he said.

Koretsky was reported as saying earlier that Ukrnafta's financial plan for 2023 targeted a net profit of UAH 12 billion and revenue of UAH 74 billion. The company did not disclose financial results for 2022.

It was also reported earlier that Ukrnafta's strategic goal is to double oil and natural gas production to 3 million tonnes and 2 billion cubic meters, respectively, by 2027.

Ukrnafta has a national chain of 537 filling stations, 456 of which are operating. State company Naftogaz is Ukrnafta's largest shareholder with a stake of 50% plus one share.

The official exchange rate was UAH 38.39/$1 on March 6.