12 May 2022 16:00

Ukrenergo to work with EBRD to raise more funds to boost company's liquidity - CEO

KYIV. May 12 (Interfax-Ukraine) - The Ukrenergo national energy company of Ukraine will continue working with the European Bank for Reconstruction and Development (EBRD) and other international financial organizations to raise additional funds to increase the company's liquidity, Ukrenergo CEO Volodymyr Kudrytsky said.

"The current situation is such that any financial contribution to the sector is useful, and we will keep working both with the EBRD and other international financial organizations on the opportunities to raise more funds," Kudrytsky said in Kyiv on Thursday.

The EBRD's 50-million-euro loan that the bank has allowed Ukrenergo to repurpose to provide liquidity "is the first tranche," he said.

The source for repaying loans owed to international financial organizations is the debts of market players to the company, Kudrytsky said.

"We see the source for paying off these loans. We will collect the debts that temporarily accrued and will be able to repay them. But this money is vital today. It is important that Ukrenergo and other companies should take advantage of all opportunities to raise financing," he said.

As regards the distribution of the aforementioned 50 million euros, this money will be spent in part on paying for auxiliary services, Kudrytsky said.

"This is the ability of power generation to balance the system. We may repay them and help them stay afloat," Kudrytsky said, adding that the company will also take steps to ensure payments in other fields, including on the balancing market.

As reported, the EBRD has agreed the repurposing of the existing loan to Ukrenergo to provide 50 million euros of emergency liquidity.

According to Kudrytsky, Ukrenergo's net profit totaled about 2 billion hryvni in the first quarter of 2022.

"Despite major destruction caused to the power infrastructure and a significant drop in the power transmission volumes, the company saw 2 billion hryvni in net profit in the first quarter of this year, even though we had to make up for a 2.6-billion-hryvni shortage from forex transactions," Kudrytsky said.

The company's profit is due successful moves on the balancing market, revenue from selling access to interstate power exchanges, and profitable business operations, he said.

The company swung to profit as early as 2021 with earnings of 140 million hryvni compared to a net loss of 27 billion hryvni in 2020, he said.