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 2026 2026
Issue Volume ($m) 335 600 500
Coupon Rate (% p.a.) 7.38% 7.13% 7.63%
Coupon Frequency S/A A S/A
Maturity date 7/19/2022 7/19/2026 11/8/2026
Ratings: Fitch/Moody`s/S&P RD RD RD
Market Price* ($) 46.00 26.00 31.00
Market YTM* - 71.80% 50.10%
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

Jun 01, 2023
| Oil & Gas

Naftogaz — Further upgrades restructuring offer for 2022 and 2026 bonds, agrees it with selected holders

Naftogaz held yesterday a conference call with holders of its bonds, presenting a third update of its restructuring proposals for the 2022 and 2026 issues. For holders of the $335m bond that fell due on Jul. 19, 2022, Naftogaz offered to pay 5% of the principal ($16.8m) after its proposal was accepted (implementation date) and defer the remaining amount to 2024 and 2025. Half of the remaining principal would to be paid on Jul. 19, 2024, and the half, on Jul. 19, 2025. In addition, Naftogaz offered to pay interest accrued until the implementation date along with additional interest on that amount. Following the implementation date, coupons would be accrued at an increased rate of 7.650% (vs. 7.375% originally) and deferred until the new maturity date along with interest on interest. The company may decide to pay deferred and additional interest in part or in full at any time or capitalize it. However, the semiannual coupon accruing from Jan. 19, 2024. to Jul. 19, 2024, would be payable in cash.
May 04, 2023
| Oil & Gas

Naftogaz — Reports weak 9M22 results

Naftogaz reported 9M22 revenues of $5.1bn (+5.1% y-o-y), EBITDA of $85m (down from $1.4bn in 9M21), and net loss of $2.1bn (vs. $159m loss in 9M21). Net operating cash flow was negative at $461m (vs. -$706m in 9M21), including $398m of additional working capital. Net investment cash flow stood at +$159m (vs. -$229m in 9M21), reflecting $344m of income from the gas transmission system operator, and financing cash flow was positive at $182m (vs. -$113m in 9M21). Naftogaz paid $129m of dividends to the state and reported $415m of net proceeds from new borrowings (vs. net repayment of $24m in 9M21). Total debt was little-changed at $2.5bn, with cash up 3.7x to $837m (-25% YTD) and net debt down 24% to $1.6bn.
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