Naftogaz Ukrainy

Naftogaz published its 2025 IFRS financial results, implying headline EBITDA of $2.2bn, down 26% y-o-y, while the EBITDA margin fell 12pp y-o-y to 33%. End-2025 cash declined 69% y-o-y to $0.6bn, while total debt surged 63% y-o-y to $4.2bn, implying a 5.5x y-o-y increase in net debt to $3.6bn and pushing Net Debt/EBITDA to 1.7x from 0.2x at end-2024. The company also reported repayment of UAH 8.8bn equivalent (around EUR 200m) of EBRD debt and the $165m principal on its 2025 Eurobond. Naftogaz provided no update on its debt management plans, saying only that it is working to reschedule bank debt to later periods and has hired a financial advisor to manage its debt burden. Separately, the Ukrainian government approved Naftogaz’s consolidated profit attributable to shareholders at $72m and ordered a 30% dividend payout, or $22m, with the remainder expected to support the company’s other financing needs. Also this morning, Naftogaz said Russian ballistic missile and drone strikes hit its production assets in the Poltava and Kharkiv regions, killing three company employees and two State Emergency Service workers, while injuring 37 others.

The government agreed with the Export-Import Bank of the United States on a mechanism to finance $300m in US energy equipment purchases for Naftogaz, PM Yulia Svyrydenko said following a meeting with EXIM President and Chairman John Jovanovic. The sides also discussed a broader range of energy sector modernization projects with total financing exceeding $1bn, as well as financing for new locomotives for Ukrainian Railways.