National oil and gas holding Naftogaz of Ukraine in 2016 received UAH 26.5 billion, or US$ 984 million, in net profit, while the company saw a UAH 27.7 billion, or $1.029 billion, net loss in 2015, according to the holding`s press service.
”In 2016, Naftogaz received UAH 26.5 billion of net profit for the first time over the five years,” the report said.
In particular, the company received UAH 28.7 billion in profit due the transit of gas through the Ukrainian territory, UAH 2.4 billion income was formed from participation in the capital, whereas losses in the sphere of ”wholesale gas trade” reached UAH 2.9 billion, the press service said.
”The company suffered a UAH 2.9 billion loss from `wholesale gas trade,` which was due to the sale of gas for consumers who are subject to special obligations,” the press service noted, adding that another UAH 1.7 billion losses were caused by litigation costs, foreign exchange losses, income on account balances, and other charges.
In 2015, the holding`s losses from conducting wholesale gas trade stood at UAH 42.4 billion, or $1.57 billion.
”The decrease in losses from the wholesale trade in natural gas (UAH 2.9 billion against UAH 42.4 billion in 2015) was a result of the natural gas market reform. However, the revenue from natural gas transit in 2016 rose by UAH 7.4 billion against 2015, which was due to an increase in the volume of transit by 15.1 billion cubic meters (by 22.5%) and devaluation of the national currency,” the report said.
Moreover, Naftogaz plans to pay the state some UAH 13.3 billion in dividends (50% of net profit) on the results of the past year, the press service said, noting that the state-owned holding in 2016 paid UAH 16.3 billion in taxes.
