Results for 1Q2019
Results for 1Q2019

PJSC Ukrnafta announces its financial and operational results for 1Q2019.


  • stable growth of crude oil, condensate and natural gas production continues (+6.4% and +10.6% respectively y-o-y);
  • average daily production of crude oil and condensate reached 4.2 ktonnes, while for gas this figure made 3.2 mln m3;
  • overall production of crude oil and condensate made 376 konnes, while for gas this figure made 290 mln m3;
  • UAH 3.8 bln paid in all taxes.

Key developments:

  • 41 capital workovers and stimulation operations of oil and gas wells have been completed;
  • remote monitoring system has been increased up to 171 wells with more automation expected in 2Q2019;
  • consolidation of the company’s information structure into the single information space based on the cloud technologies by Microsoft completed;
  • PJSC Ukrnafta Supervisory Board elected which now includes six independent members;
  • shareholders approved solution on settling the outdated tax debt;
  • shareholders decided to terminate Mark Rollins’ duties as Chairman of the Board and to appoint Oleg Gez, Deputy Chairman of the Board, Executive Vice President Downstream, Acting Chairman of the Board,  until a permanent Chairman is elected in accordance with the procedure provided for by the new Statute of the company.

                                                                         Financial results




1Q2019/. 1Q2018, %

Net revenue, mln UAH




Profit before taxes, mln UAH




Current corporate income tax, mln UAH




Net profit/(loss), mln UAH




                                                                        Production results




1Q2019/4Q2018, %


1Q2019/1Q2018, %

Production of crude oil and condensate, ktonnes






Gas production, mln m3






Production of LPG, ktonnes






Analysis of financial results

In 1Q2019, 3 out of 5 state-run oil and condensate auctions failed due to the absence of buyers and, consequently, influenced negatively the financial results: the significant part of crude oil was not sold. Also, in 1Q2019 comparing to the same period of previous year, dynamics of weighted average selling price for oil & condensate and gas was negative.

In 1Q2019, PJSC Ukrnafta paid UAH 3.8 bln in taxes to the budgets of all levels. For the reported period taxes in total exceeded by 9.7% the same indicator for 1Q2018. Though the issue of the outstanding tax debt that limits Ukrnafta’s investment capacities is still not solved, the company bears its tax liabilities in full while repaying the tax debt. 

The company continues to make allocations to reserves for possible fines and penalties related to the rent and other tax arrears accumulated in the previous periods, which totalled UAH 1 bln in Q1 this year.

Analysis of operational results

In 1Q2019, Ukrnafta increased oil and condensate production up to 4.17 ktonnes/day, 6.4% up y-o-y and 3.5% up q-o-q. In turn, average daily gas production grew up to 3.22 mln m3/day, 10.5% up y-o-y and up 4.3% q-o-q. Beginning of Q2019 marks positive dynamics in production as well.

Ukrnafta continues to increase production, though its investment possibilities have been limited for four years already and the company is working on the exhausted wells. The positive dynamics takes place due to the production stimulation, optimization of capital and planned workovers, reactivation of idle wells, use of innovative technologies and replacement of the outdated equipment. At the same time, implementation of the shareholders’ decision to pay off the historical tax debt of Ukrnafta with funds accumulated as a result of purchase of 4 bln m3of gas by NAK Naftogas, will open the path to increase of investments, modernization of production assets and stable growth of hydrocarbons production.

In 1Q2019, Ukrnafta completed 3 hydraulic fracturing operations, 28 capital workovers and 10 opex workovers. As of March 31, 2019, due to these operations, Ukrnafta produced 7.06 ktonnes of oil and condensate and 15.99 mln m3 of gas. Moreover, in the reported period the company reactivated 65 idle oil wells.