Naftogaz Ukrainy

Naftogaz held a conference call, providing a condensed update on its operating and financial performance and urging Eurobond holders to form an ad-hoc committee to facilitate a debt management exercise. The company did not indicate its preferred restructuring terms but stated it faces $2.8bn in debt service this year and intends to extend the maturities of debt owed to IFIs and Ukrainian state-owned banks (SOBs). Management said gas production declined by 11% in 2025 to 12.4 bcm due to Russian attacks on its assets. The company supplied 16.4 bcm under Public Service Obligations (PSO), while another 0.6 bcm was sold to industrial consumers. To cover the production shortfall and replenish underground storage, Naftogaz imported 5.7 bcm of gas at an average price of UAH 21,400/tcm ($513/tcm). The company estimates it will need to import an additional 1.5 bcm during the next heating season, on top of 1.9 bcm already imported in 1Q26, with any further production losses also to be covered by imports. Naftogaz also reported 2025 revenue of $6.5bn (-13% y-o-y) and EBITDA of $1.6bn (-36% y-o-y). Total debt increased by 63% to $4.2bn, with SOBs, IFIs, and Eurobonds accounting for 36%, 34%, and 30%, respectively. Cash declined to $0.6bn at end-2025 from $2.1bn at end-2024. Management expects to publish audited financials by end-April.

The government issued a decree removing gas-fired power producers from the list of companies eligible to receive gas from Naftogaz under the Public Service Obligations (PSO) mechanism. Companies generating both electricity and heat from natural gas will remain PSO-eligible, with access to gas at a fixed price of UAH 17,500/tcm ($400, excl. VAT).