Energy company Naftogaz witnesses a substantial 64% increase in profits during 2024, defying ongoing Russian attacks on its energy infrastructure.
Ukraine's state-owned oil and gas beast, Naftogaz Group, announced a stunning net profit of Hr 38 billion ($913 million) in 2024, marking a whopping 64% increase compared to the previous year.
Even with Russian attacks hacking away at Ukraine's energy infrastructure, knocking out nearly half of Naftogaz's gas production capacity, the company managed to stay afloat, thanks to some serious grind and an ounce (or cubic meter) of salt.
"This ain't no walk in the park, even in peaceful times - during a war, it's a freight train headed towards impossible," said Roman Chumak, acting CEO of Naftogaz.
The company's operating profit soared to Hr 51.1 billion ($1.2 billion), demonstrating a robust 32% year-on-year growth. Gross profit exploded to Hr 89.1 billion ($2.1 billion) from a more modest Hr 48.5 billion ($1.1 billion) in 2023.
KPMG, a renowned international audit firm, confirmed these financial results.
Ukrgasvydobuvannya, Naftogaz's gas production unit, saw profits double to a hefty Hr 20.9 billion ($501.6 million) in 2024. Gas output surged to 13.9 billion cubic meters (bcm) compared to 13.2 bcm in 2023 - a testament to the team's relentless efforts.
During last winter's frosty attacks by Russian forces, 34 of Ukrgasvydobuvannya's facilities took a beating, but the company still managed to hit a three-year high, producing 38.9 million cubic meters daily, thanks to commissioning 83 new wells.
The gas trading segment managed to turn a profit for the first time in ages, posting a net operating result of Hr 2.3 billion ($55.2 million) compared to a hefty loss of Hr 22.3 billion ($535.2 million) in 2023. The gas supply settlement rate improved by a substantial 10 percentage points to 98%.
Naftogaz's oil divisions, Ukrnafta and Ukrtransnafta, shone brightly in 2024, with Ukrtransnafta raking in a profit of Hr 3.7 billion ($88.8 million) and Ukrnafta digging deep into the black with Hr 17.3 billion ($415.2 million) in earnings for the second year running.
The company also expanded its electricity generation capacity with ongoing cogeneration projects set to provide an additional 177 megawatts of power.
Naftogaz Group handed Hr 104.3 billion ($2.5 billion) to Ukraine's state coffers in 2024, contributing approximately 7% of the government's total revenue.
"We're still the energy security knight in shining armor during this war, and we're getting fairly rewarded for it, thanks to the team's heroics," Chumak said.
On April 29, Naftogaz appointed Serhii Koretskyi as the company's new CEO. Previously serving as the head honcho at Ukrnafta and Ukrtatnafta, Koretskyi steps in to replace Oleksii Chernyshov, who left in December 2024 to become the deputy prime minister and minister of national unity.
Amidst the challenges, Naftogaz affirms its ability to adapt and pave the way for Ukraine's energy security. Through strategic partnerships, financial assistance, and international collaborations, the company continues to minimize operational risks, ensuring the country's energy stability.
- Despite facing significant challenges, including Russian attacks impacting nearly half of Naftogaz's gas production capacity, Naftogaz Group announced a net profit of Hr 38 billion ($913 million) in 2024, marking a 64% increase from the previous year.
- Naftogaz's gas production unit, Ukrgasvydobuvannya, saw profits double in 2024, reaching Hr 20.9 billion ($501.6 million), with gas output surging to 13.9 billion cubic meters compared to 13.2 bcm in 2023.
- The gas trading segment of Naftogaz, which had posted a hefty loss in 2023, managed to turn a profit for the first time in ages, posting a net operating result of Hr 2.3 billion ($55.2 million) in 2024.
- Naftogaz Group's profitable performance in 2024 Contributed nearly 7% of Ukraine's government's total revenue, amounting to Hr 104.3 billion ($2.5 billion) handed over to the state coffers.
