In the first 9 months of 2021, Gas TSO of Ukraine (GTSOU) made 5.8 billion UAH in net profit and 40 billion UAH in net revenue from the sale of services.
Gas DSOs’ debt growth caused by significant volumes of gas withdrawn from the main gas pipelines system to 10.7 billion UAH is a key factor influencing the financial results of GTSOU.
“Gas TSO of Ukraine remains a profitable company, but indebtedness of oblgazes is increasingly affecting the financial stability of the company: despite receiving funds from oblgazes to pay off accounts receivable for gas balancing services generated in February-March 2021, their volume is not comparable to the debts accumulated. The situation is exacerbated as the new debts are being formed in parallel, for example, in September the indebtedness of oblgazes for balancing services increased by more than UAH 2.6 billion. This situation is reflected in the financial statement by creating a provision for credit losses,” – explained Yuriy Kulyk, Financial Director of Gas TSO of Ukraine.
The net cash flow of GTSOU from operating activities for 9 months of 2021 amounted to UAH 8.2 billion against UAH 26.6 billion in the same period last year. The receivables of GTSOU increased to UAH 12.4 billion, and the provision for credit losses associated with this debt amounted to about UAH 8 billion.
Taxes and levies of Gas TSO to the state and local budgets amounted to UAH 11.8 billion.
“In October, the Government approved a new settlement procedure for oblgazes – automatic funds allocation to the accounts of oblgazes and Gas TSO. We support the earliest possible introduction of this mechanism and expect it to improve the discipline of oblgazes in terms of payments for the Operator’s services. In order to launch the new automated settlement procedure, the NEURC shall compute and approve the norms for the allocation of funds. Consequently, oblgazes will settle accounts not as they wish, but instead, proportionally to the funds they actually receive from consumers,” summed up Sergiy Makogon, General Director of the GTSOU.
Meanwhile, according to the results of three quarters of 2021, the implementation of production programs amounted to UAH 5.3 billion. Thereby GTSOU carried out preparations for the 2021/2022 heating season.
It should be recalled that based on the 2020 results, the net profit of Gas TSO of Ukraine was UAH 20.4 billion.