Wednesday, December 3, 2008

NJSC Naftogas: On non-planned expenditures

In 2008 NJSC Naftogas of Ukraine has faced a series of factors which negatively influenced the movement of circulating funds and reduced their quantity in the Company. This has entailed debts on current payments, notably for the imported natural gas.

So, from the revenues of the current year the Company had to completely clear liabilities of heat-and-power communal (HPC) enterprises for 2007 to the supplier of imported natural gas to the tune of UAH 1.6 bn. However, the HPC enterprises continue accumulating the debt in the current year. The amount of debt of these enterprises to NJSC Naftogas of Ukraine totals UAH 1.2 bn for today.

Besides, the Company was forced also to pay the debts in VAT for the imported in Ukraine in the first quarter of 2006 natural gas to the tune of around UAH 1.6 bn.

The situation with the course of national currency has added to non-planned expenses of the Company. In the financial plan of NJSC Naftogas of Ukraine the course of UAH has been fixed on the level of 5.05 UAH against USD in payments along the foreign contracts. As a result of drop of the hryvnya course during October-November the losses amounted UAH 600 mn.

To sum up the unplanned losses of the Company within 2008 have amounted over UAH 5 bn. It should be noted that the mentioned sum in fact corresponds to the sum of debt of NJSC Naftogas of Ukraine on the current payments (taking into account already transferred money for September-October of the current year) for the imported natural gas.