Naftogaz Ukrainy

State oil and gas monopoly Naftogaz Ukrainy controls 100% of oil and gas transportation and storage and most of oil and gas extraction in Ukraine. The company operates a gas transit system with 38,000 km of pipelines, capable of importing 290 bcm and exporting 178 bcm of gas annually (including 140 bcm to Europe). Naftogaz’s key assets include Ukrnafta (near-monopoly producer of oil in Ukraine); Ukrgazvydobuvannya (largest producer of gas and gas products); Chornomornaftogaz (offshore oil and gas producer); Ukrtransnafta (oil pipeline operator); and Ukrtransgaz (gas pipeline operator).
Year 2022 2024 2026
Issue Volume ($m) 335 600 500
Coupon Rate (% p.a.) 7.375% 7.125% 7.625%
Coupon Frequency S/A A S/A
Maturity date 7/19/2022 7/19/2024 11/8/2026
Ratings: Moody`s/S&P/Fitch -/-/B -/-/B -/-/B
Market Price* ($) 103.25 104.00 103.25
Market YTM* 3.35% 5.55% 6.86%
Spread over UST* 322 596 596
Note: *Based on bid price.
Year 2019 2020 2021E
Net Sales ($m) 5,883 *** ***
EBITDA ($m) 1,208 *** ***
Net Income ($m) 100 *** ***
EBIT Coverage Ratio (x) 10.29 *** ***
Net Debt/Equity (%) 15.5% *** ***

Latest news about Naftogaz Ukrainy

Sep 09, 2021
| Oil & Gas

Naftogaz — Supervisory Board independent directors resign

The three independent directors on the Supervisory Board of Naftogaz resigned, citing a conflict with the company CEO.
Aug 12, 2021
| Oil & Gas

Naftogaz — Fitch upgrades rating outlook to positive

Fitch Ratings affirmed its rating on Naftogaz at B and upgraded the rating outlook to positive from stable following a sovereign rating action. While noting the company’s weak financial profile due to volatile gas prices, inability to collect receivables, and high required CAPEX, the agency said the Ukrainian government has strong incentive to support Naftogaz due to the company’s strategic importance. In other highlights, F/X risks remain high but are somewhat mitigated by a large F/X-denominated cash balance of $1.3bn (UAH 37bn; end-2020). Fitch expects Naftogaz to spend around $1bn p.a. on CAPEX and sees total dividends at less than $1bn over 2021-2022.
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