Ukraine's Naftogaz had losses of around $1.1 bln in 2022 -CEO
MOSCOW. March 1 (Interfax) - Ukraine's national oil and gas company Naftogaz had net losses of around UAH 40 billion or $1.1 billion at the current exchange rate according to preliminary data in 2022, Ukrainian media quoted Naftogaz CEO Alexei Chernyshov as saying.
"We will declare certain losses, if I'm not mistaken, in the range of UAH 40 billion," he said during a Forbes Business Breakfast live broadcast on YouTube on Wednesday.
He said the losses were largely associated with significant accounts receivable that arose as a result of the state using the company's working capital to meet the needs of consumers for energy.
Chernyshov said the bulk of the receivables consisted of three components: the difference in tariffs - UAH 36 billion, debt of regional gas distribution and sales companies - UAH 76 billion, and "special obligations" for 2022-2023 - UAH 158 billion.
"Our logic is that we are now strengthening this area, carrying out a certain restructuring to turn a 'dead' receivable into a working asset," he said.
He also said he was confident the company would successfully restructure Eurobonds maturing in 2022 and 2026.
"Naftogaz is in default with respect to Eurobonds, certain obligations, which it is now actively restructuring, offering bond holders very interesting conditions, and they are motivated in the form of additional payments to accept the restructuring. We will achieve this, I see no problems here," Chernyshov said.
Naftogaz saw its net losses widen 34.6-fold year-on-year in H1 2023 to UAH 57.159 billion. Consolidated sales revenue rose 18.2% to UAH 124.8 billion. The company swung to a net profit of UAH 12.023 billion in 2021 from UAH 19.002 billion in 2020, with sales rising 36.5% to UAH 217.384 billion.