FSUOGM: Ukraine’s Naftogaz makes $1bn loss in 2022

According to the chairman of Naftogaz, Oleksiy Chernyshov, the company has recorded a preliminary net loss of around UAH40bn ($1.1bn) for the year 2022, Interfax Ukraine reported on March 2.

During a Forbes Business Breakfast stream, he revealed that unprofitable activity was mostly due to significant receivables that arose after the state used Naftogaz's working capital to meet the energy supply needs of consumers.

Chernyshov said that the company's receivables comprise three components, namely the tariff difference (UAH36bn), the debt of regional gas suppliers and gas distribution companies (UAH76bn), and public service obligations (PSO) for 2022-2023 (UAH158bn). He added that the company is implementing a restructuring process to convert non-performing accounts receivable into a working asset.

Chernyshov expressed confidence in Naftogaz's ability to successfully restructure its eurobonds 2022 and 2026. Although the company is currently in default with respect to eurobonds and certain obligations, it is offering bondholders interesting restructuring conditions. Chernyshov believes that these conditions, combined with additional payments, will motivate bondholders to go for the restructuring. He sees no issues in achieving this.

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