Ukrnafta earns UAH 40 bln in net profit after placed under state control - CEO

MOSCOW. Nov 6 (Interfax) - Ukrnafta has received around UAH 40 billion in net profit since it was placed under state control, also increasing its production of natural gas by 7% since the beginning of 2024 year-on-year, Ukrainian media cited Ukrnafta CEO Sergei Koretsky as saying on the sidelines of the 'Day of Supplier to State-Run Oil and Gas Enterprises: Plans for 2025' conference.

"State-run Ukrnafta under its new management has already earned approximately 40 billion hryvni in net profit. Gas production has also grown by 7% in 2024. As regards oil, the results are not so impressive, unfortunately, our record loss is 25% of the daily production amount. Despite this, the results for these nine months and the forecast for the next three months show that there will be an increase in oil production as well," Koretsky said.

Output is expected to continue to grow in 2025 as well, he said. Ukrnafta's gas production rose 6% and oil production went up 3% in 2023 year-on-year.

Ukrnafta is the largest oil producing company in Ukraine and the operator of a national network of gas stations. The company took over the management of Glusco assets in March 2024 and currently operates 545 gas stations, including 460 of its own and 85 under management.

The company is carrying out a comprehensive program for resuming its operations and reformatting its own network of gas stations. Since February 2023, the company has been issuing its own NAFTACard petrol cards and coupons, which are sold to entities and individuals via Ukrnafta-Postach LLC.

The biggest shareholder is Naftogaz with 50% plus one share. The Headquarters of the Supreme Commander-in-Chief ruled in November 2022 to expropriate Ukrnafta shares owned by private shareholders - that stake is now controlled by the Defense Ministry.