Naftogaz will increase gas prices due to billions of dollars in losses – Yuriy Vitrenko



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Photo: Naftogaz (RBK-Ukraine)

NJSC Naftogaz is hiding behind the global crisis and coronavirus and is manipulating financial information.

Former CEO of the company Yuriy Vitrenko wrote about this on Facebook.

“Less 11.5 billion UAH in six months! These figures were not shown to us for a long time, which delayed the publication of reports in violation of the requirements of the law. And this is a national company, which received almost all permits for gas production, underground gas storage facilities, an oil transportation system and the like for free. Instead of showing a return appropriate to the return on invested capital (money of the Ukrainian people), this company ceased to be profitable, “Vitrenko wrote.

He also noted that Naftogaz had long shown earnings in its financial documents, “forgetting” to say that without Gazprom’s revenue, the company would not have been profitable last year.

“How can we now explain the huge ‘charity’ expenditures and the most expensive advertising on Ukrainian Forbes for the unprofitable Naftogaz? I mean, are they already doing it not at a profit, but at a loss?” – Asks the former senior manager of the company.

Recall, according to NJSC Naftogaz press service, the group’s consolidated net loss for the first half of 2020 amounted to UAH 11.5 billion.

The day before the loss information was released, Naftogaz raised the wholesale price of natural gas for heat producers, to whom it supplies the resource under the CA, to 5,183 UAH per cubic meter (VAT included) , 45% higher than the price of the previous month.

The rise in gas prices for heat producers, who are obliged to buy gas exclusively from Naftogaz until May 1, 2021, will surely lead to an increase in heating and hot water rates.

Aleksey Kucherenko, First Vice Chairman of the Verkhovna Rada Committee for Energy and Housing and Utilities, linked Naftogaz’s rise in gas prices with the company’s unprofessional management.

“Exactly a year ago, we started the hysteria … that we would find ourselves without gas in winter. And we began to buy large volumes of imported gas at a price of around $ 200 per thousand cubic meters. I do not understand why, because the prices in Europe they were lower at the time. As a result We passed the heating season, a warm winter set in. And there were about 11 billion cubic meters of gas left in the storage facilities. The surplus is huge, and a record price of $ 200. And they want to sell it, and they don’t want to sell it at a loss. So they make up all kinds of fairy tales to sell us our expensive gas, which we bought that year, “he said.

According to the people’s deputy, for the above reasons, the price of gas for the final consumer in 2020 will be 7.5-8 UAH per cubic meter.

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