November 3, 2020, Kyiv – Gas TSO of Ukraine has obtained the revenue in the amount of UAH 44.8 billion after 9 months of operation since the acquisition of the status of a licensed Gas TSO (January 1, 2020).
For the services provided on the transit of natural gas to the EU countries and Moldova, as well as for the gas flow via IPs (Interconnection Points), Gas TSO of Ukraine has earned UAH 34.5 billion in revenue (77%), whereas for the services rendered within Ukraine-10.3 billion (23%).
In particular, transit function has generated UAH 32.4 billion for Company, while import and re-export has generated UAH 2.1 billion. Including company’s earning of UAH 490 million for the provision of shorthaul, which allows customers to order gas transportation between European countries through the territory of Ukraine with the possibility of storing gas in Ukrainian storage facilities at a discounted price.
It should be noted that the attractiveness of transportation services for customers of GTSOU has increased by more than a quarter due to the conclusion of interconnection agreements with neighboring countries, introduction of reverse on the Polish, Slovak and Hungarian routes, creation of virtual interconnection points with Poland and Hungary for traders’ convenience, implementation of transparent mechanism of capacity allocation through auctions on certified platforms.
“In 2020, we have been focused on integrating the Ukrainian and European gas markets and introducing new products and services to our customers. This allowed us to increase the volume of orders on gas transportation from European countries by 28%. We will continue to work on expanding opportunities for the Ukrainian GTS in order to build Eastern European gas hub in Ukraine,” said Sergiy Makogon, CEO of GTSOU. “We also see our key task to secure stability and financial efficiency of the Ukrainian GTS utilization, and therefore ensure payments to our shareholder – the state”.
The company’s tax payments contributed to the budgets of all levels for the reporting period amounted to UAH 9.7 billion. It is expected that by the end of this year GTSOU will transfer more than UAH12 billion to the state and local budgets, and thus will become one of top ten biggest taxpayers in Ukraine.
The company’s operating expenses for the three quarters of 2020 amounted to UAH 20.0 billion (half of which was the purchase of gas for PTN and balancing measures).
The financial results of GTSOU were negatively affected by debts of the market participants formed for negative imbalances in the gas transportation system in the amount of more than UAH 1 billion. Taking into account the dynamics of debt accumulation in previous periods, there is a significant risk of this amount increasing in the fourth quarter of 2020 due to the start of the heating season.