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 2025 2026 2028
Issue Volume ($m) 335 600 500
Coupon Rate (% p.a.) 7.65% 7.13% 7.63%
Coupon Frequency S/A A S/A
Maturity date 7/19/2025 7/19/2026 11/8/2028
Ratings: Fitch/Moody`s/S&P CC/—/— CC/—/— CC/—/—
Market Price* ($) 75.00 52.00 51.00
Market YTM* 27.80% 40.20% 36.60%
Spread over UST* - - -
Note: *Based on bid price.
Year 2020 2021 2022E
Net Sales ($m) 7,161 *** ***
EBITDA ($m) 867 *** ***
Net Income ($m) (705) *** ***
EBIT Coverage Ratio (x) 5.92 *** ***
Net Debt/Equity (%) 21.1% *** ***

Latest news about Naftogaz Ukrainy

Jan 08, 2024
| Oil & Gas

Naftogaz — Reports 9M23 EBITDA of $1.1bn, cash of $1.3bn

Naftogaz published its 9M23 results, with revenue dropping 13% y-o-y to $4.5bn, EBITDA surging by 8.5x y-o-y to $1.1bn, and net income rebounding to $418m from a net loss of $2.2bn in 9M22. The EBITDA and net margins jumped by 23pp and 52pp y-o-y to 26% and 9%. Net operating cash outflow was negative at $31m (vs. -$383m in 9M22), investment cash was positive at $247m, with $708m worth of sold cushion gas offsetting $619m of PP&E purchases. Financing cash flow was also positive at $52m, with $198m of net proceeds from borrowings offsetting a $144m payment of interest. End-9M23 cash stood at $1.3bn, up from $837m at end-2022 but down from $1.5bn as of end-June 2023, with most of it held at Ukrainian state-owned banks. Total debt increased by 17% y-o-y to $2.9bn, with net debt dropping by 1.8% y-o-y to $1.6bn, yielding Debt/EBITDA of 1.8x and Net Debt/EBITDA of 1.0x. Naftogaz reported group gas production of 10.3 bcm in 9M23, up from 10 bcm in 9M22, with full-year extraction seen at 14.0 bcm (vs. est. 13.2 bcm in 2022). The company also reported 9.4 bcm of gas in its underground storage as of end-9M23, estimating that this volume together with current production would be sufficient to go through the heating season.
Feb 13, 2024
| Oil & Gas

Naftogaz — Fitch upgrades IDR to CC from RD post-restructuring

Fitch Ratings upgraded its Long-Term Issuer Default Rating (IDR) on Naftogaz too CC from RD following the company’s Eurobond restructuring. The rating agency also affirmed Naftogaz’s senior unsecured notes issued by Kondor Finance at C, with a recovery rating of RR6. Fitch noted that Naftogaz continued to carry a high credit risk even after the debt restructuring due to company liquidity being “extremely weak and unpredictable” amid high operational risks, slow payments for gas, and limited external funding options. Fitch said that Naftogaz was likely to generate negative free cash flow in 2023 and 2024 without state support, with its cash position seen worsening substantially by end-2023 from $1.5bn as of end-1H23. (Fitch Ratings)
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