Naftogaz Ukrainy sees 2008 losses widen 30-fold
KYIV. Sept 2 (Interfax) - Ukrainian national oil and gas company Naftogaz Ukrainy posted a loss of 2.008 billion hryvni (7.98 hryvni/$1 on September 2) in 2008 under International Financial Reporting Standards (IFRS), compared with a loss of 0.066 billion hryvni in 2007, the company said in its financial statement published on Wednesday.
Revenue rose 74.7% to 53.143 billion hryvni, but gross profit fell 9.4% to 4.235 billion hryvni.
Ernst&Young completed its audit of the 2008 consolidated financials on August 28.
Under the terms of a Eurobond issue, Naftogaz is committed to publishing its financials for the previous year by July 31. It has not met that deadline in recent years. This year, after Naftogaz and the government said it was possible the company's external debt would be restructured, some of the Eurobond holders said they viewed the delay in publication of the 2008 financials as indirect evidence of Naftogaz's default on its obligations.
Most of the revenue growth came from oil and gas sales, which rose 180% to 33.78 billion hryvni. Revenue from transportation was up just 10.8% to 14.49 billion hryvni and sales of refined product were down 20.9% to 3.43 billion hryvni.
The net cash flow from operations was negative 9.86 billion hryvni compared with positive 5.89 billion hryvni in 2007. Meanwhile tariff subsidies from the state budget rose 470% to 7.38 billion hryvni.
Earnings on loans increased 180% to 30.13 billion hryvni, while loan payments rose 29.6% to 14.63 billion hryvni.
Naftogaz's current liabilities exceeded current assets by 14.01 billion hryvni, compared with a difference of 16.24 billion hryvni in 2007.
Naftogaz Ukrainy includes Ukraine's biggest oil and gas production enterprises and is the monopoly for transit and storage of natural gas and for oil transportation on Ukraine's pipeline network.