Company performance in H1 2021
Company performance in H1 2021

Production Results Analysis

Ukrnafta produced 739.3 ktonnes of oil and condensate and 542.1 million m3 of gas in the first half of 2021, having exceeded the approved production plan by 3.3% and 7.9%, respectively. Average daily production of oil and condensate has shown growth since the beginning of the year. In June, average daily oil and condensate production came to 4,17 ktonnes, a 4.6% increase compared to January and a 0.5% increase compared to May. The daily average natural gas output in June reached 3.15mln m3, which is 7.1% more than in January and 3.9% more than in May.

Ukrnafta managed to increase its average daily output by improving operating efficiency while working on the existing well stock: switching to new productive horizons, optimising workovers and maintenance of prospective wells, and replacing critically worn-out equipment. In the first half of the year the company completed workover operations on 76 wells, put 42 wells out of operation, performed 13 stimulation jobs (including 3 hydraulic fracturing jobs) and performed 3 coiled tubing operations without a workover crew. Thanks to organizational and technical measures, 61.3 ktonnes of oil and condensate and 32.9 million m3 of natural gas were additionally produced.

 

Fiscal discipline

Ukrnafta continues to meet its current tax obligations in full. The company paid UAH 6.1bln in taxes in the first half of the year. This amount included the rent for subsoil use, VAT, excise duty and other taxes.

The state and local budgets of various levels received UAH 3.56 bln of royalties for the use of subsurface resources. According to the rent sharing mechanism, established by law, the oblasts, raions and local communities’ budgets will receive UAH 178 mln. The largest revenues from Ukrnafta's rent will go to the budgets of Sumy, Ivano-Frankivsk and Poltava regions.

Rent revenues to budgets of oblasts, raions and local communities, mln UAH

 

6 months 2021

Sumy oblast

73,7

Ivano-Frankivsk oblast

41,7

Poltava oblast

27,6

Chernihiv oblast

16,2

Lviv oblast

15,3

Kharkiv oblast

2,8

Dnipropetrovsk oblast

0,5

Chernivtsi oblast

0,1

Total

177,9

Results of the work on the retail market

In the retail segment, Ukrnafta focused on modernisation of its filling station network. In 2021, the company continues to upgrade its retail business infrastructure and implement the MROS software and hardware complex. To reduce downtime at filling stations during power outages, it is replacing network equipment and improving communication channels, and supplying petrol and diesel generators.

In addition, the company has started replacing price boards at the filling stations and plans to do it at 85 stations by the end of the year. Ukrnafta is implementing a programme to improve the energy efficiency of stations and is repairing the pavement at filling stations.

This year, additional emphasis has been put on expanding the range of services at gas stations. As of today, 45 stations have shops; there are plans to open 23 more shops by the end of the year. The range of associated goods is also expanding at filling stations without full-fledged shops.

By introducing additional services and maintaining fair fuel prices, there was an increase in sales of petroleum products and related products in the first half of the year.