Naftogaz of Ukraine’s net loss increases 11 times y-o-y in 2009

Naftogaz of Ukraine released its 2009 audited consolidated IFRS accounts yesterday, reporting net revenue of UAH 65.5 bln (up 23.2% y-o-y), gross profit of UAH 5.8 bln (up 19.8% y-o-y), and a net loss of UAH 22.7 bln (vs. a net loss of UAH 2.0 bln in 2008). The net loss increase stems mainly from provision accumulation against (i) litigation related to disputes between Naftogaz and Rosukrenergo AG for UAH 11.2 bln as well as (ii) bad debts for UAH 5.6 bln (5x more than in 2008). The company’s share capital was boosted threefold, or by UAH 18.6 bln, during the year. The government recently increased the Naftogaz charter fund by another UAH 7.4 bln. The 2009 accounts were prepared by Ernst & Young. Naftogaz is a 100% state-owned company that has stakes in various domestic companies in oil & gas production, refining, distribution and transportation.