The Chairman of the Management Board of the State Gas Producing Company Ukrgasvydobuvannya Oleg Prokhorenko said that the company’s net profit for 2016, according to preliminary estimates, was UAH 11.9 bln, he said in the interview to Focus, Ukrainian News reports.

At the same time, during the last two years, Ukrgasvydobuvannya was lossmaking. In 2015, it showed the loss, amounting to UAH 242.065 mln, and in 2014, the loss was UAH 228.063 mln.

As Ukrainian News reports, the first significant increase of gas rates in Ukraine was in 2015 – during the government of Yatseniuk, after which in 2016, the government of Groisman increased them almost twice.

In 2016, Ukrgasvydobuvannya produced 14.605 bln cubic meters, and in 2015 – 14.528 bln cubic meters.

Ukrgasvydobuvannya is the largest gas producer in Ukraine and, according to the resolution of the Cabinet of Ministers, should dispose of all the volumes of produced gas to Naftogaz for the public demand at the fixed price of 4,849 UAH/ths cub.m (VAT exclusive).

In 2016, according to the chairman of the management board of the company Oleg Prokhorenko, Ukrgasvydobuvannya stated that the average prime cost of the development of standard gas deposit and further production of natural gas out of it will be about 110 dollars/ths cub.meters.

Consequently, at the average exchange rate in 2016 of 25.55 UAH/1 USD (NBU data), selling for the public demand, Ukrgasvydobuvannya   obtained, in this case, about 80 dollars (2,000 hryvnias) for each thousand cubic meters over the prime cost.

As known, 100% shares of Ukrgasvydobuvannya belongs to Naftogaz of Ukraine NJSC, the chairman of the management board of which is Andrei Kobolev.

It should be reminded that Chairman of Naftogaz receives 2 minimum wages for 1 hour.

Ukrgasvydobuvannya is the largest gas producer in Ukraine.