"Ukrnafta Achieves Record Net Profit of UAH 7 Billion, Outpacing Previous Years' Revenue"
Mykola Siutkin
You do business, we mitigate risks | Business Investment Risk Advisor | Co-founder of S&P Agency | Attorney | Co-publisher LDaily | Ironman
Amidst the ongoing war and geopolitical challenges, Ukraine's state companies have shown remarkable resilience and progress in their operations. The management of these companies remains a relevant and crucial aspect of Ukraine's economic development.
Ukrnafta, a prominent Ukrainian oil and gas company, recently announced an impressive net profit of close to UAH 7 billion for the period from September 2022 to September 2023. This accomplishment demonstrates the company's ability to thrive despite the challenging circumstances posed by the war. Led by Sergiy Koretsky, Ukrnafta's head, the company attributed its improved financial performance to various factors, including operational changes, reduced contractor numbers, and a strong stance against corruption.
The increased net profit of UAH 7 billion significantly surpasses the company's total revenues of UAH 4.3 billion in 2020 and UAH 2.1 billion in 2021. Koretsky also highlighted the noteworthy net profit of UAH 4.3 billion for the first quarter of 2023 and the substantial profit tax payment of UAH 1.17 billion to the budget. These figures exemplify the positive impact of strategic changes within Ukrnafta, such as enhanced cost efficiency, increased oil production, and expanded trading of petroleum products.
Ukrnafta aims to increase crude oil production to 3 million tons per year by 2027 and augment commercial reserves from the current 24 million tons to 40 million tons. To achieve these goals, the company invites conference participants and industry stakeholders to collaborate on the development of its resource base. The company's past success, including the drilling of 52 new wells over the last decade, sets the stage for an ambitious plan to drill an additional 212 wells in the next five years.
Ukrnafta is actively preparing a plan encompassing 20 investment projects aimed at furthering the company's growth and development. These projects will require collaboration with partners and approval from shareholders, along with confirmation of high-profile shareholder fees. By involving stakeholders and seeking external expertise, Ukrnafta demonstrates its commitment to responsible and sustainable growth.
The success of Ukrnafta is not an isolated case. It exemplifies the resilience and capability of Ukrainian state companies to overcome challenges and drive economic growth amidst the ongoing war. The efficient management and development of these companies set a precedent for the entire country, highlighting the potential for sustained progress in the face of adversity.
In conclusion, the management of state companies in Ukraine remains relevant and vital for the country's economic development. Companies like Ukrnafta showcase the efficiency of work, effective management, and significant growth despite the war. By eliminating the influence of individual business structures and optimizing the use of government resources, Ukraine can further foster the development of state companies and bolster the country's overall economy. The success of these companies serves as a testament to Ukraine's resilience and determination to thrive amidst challenging circumstances.
On the 7th of September 2022, the government of Ukraine, based on the law "On the transfer, primus rule, or the development of the lane in the minds of the legal regime of the military rank of the supra-state," along with the Supreme Commander of the ZSU's decision on primus, adopted a decision to transfer the power of shares of a large number of strategically important subsidiaries, including PJSC "Ukrnafta" and PJSC "Ukrtatnafta," which were previously controlled by the group "Privat" and other private shareholders.
On the 7th of September 2022, the National Commission for Valuable Papers and the Stock Market praised this decision.
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Following this, PJSC "Ukrnafta" and PJSC "Ukrtatnafta" underwent changes in the composition of their supervisory boards. Sergiy Koretsky was recognized as the chairman of the supervisory boards of Ukrnafta and Ukrtatnafta.