Ukrnafta plans to double oil production and create a network of 1,200 petrol stations in 2023
The company is expected to increase net income by 81% in 2023 – from UAH 40.87 billion to UAH 74.05 billion
In 2023, Ukrnafta plans to double its oil production and create a network of 1,200 petrol stations.
This is stated in the conclusion of the Ministry of Finance to the draft financial plan of the company, as reported by LIGA.net.
"The strategic plan provided includes significant growth indicators: doubling oil production from 1.5 million tonnes per year to 3.0 million tonnes per year, drilling 40 new wells, and increasing the number of petrol stations to 694 in 2024 and 1,200 in 2027," the document states.
To achieve this, the company plans to increase capital investments from UAH 9.2 billion in 2023 to UAH 18.6 billion in 2024 and UAH 35.0 billion in 2025.
Almost UAH 3 billion will be allocated by Ukrnafta this year for the reconstruction and modernisation of the petrol station network. Expenditures of UAH 3.2 billion are also foreseen for the purchase of goods and petroleum products, as well as logistical expenses for the petrol station network.
In 2023, the company is expected to increase its net income by 81% – from UAH 40.87 billion to UAH 74.05 billion, and its net profit will reach UAH 12 billion. Payments to the state will amount to UAH 6.9 billion, including dividends of UAH 344 million.
The financial plan was formed based on the assumption that 50% of the current gas production, or 278 million cubic meters, would have to be given to NJSC Naftogaz of Ukraine in repayment of the prepayment received earlier under the 2020 contract. In this case, this agreement will be fully completed by the end of November.
Out of the total volume of 1 billion cubic meters of production, 18% is planned to be directed to joint activities.
Background. It was recently reported that Ukrnafta planned to involve partner companies in the development of three new wells at Western Ukraine deposits. One of them, discovered in 2001, potentially contains significant hydrocarbon reserves.
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