Naftogaz is preparing to withdraw Eurobonds to borrow on the markets

NJSC Naftogaz of Ukraine hired a law firm Freshfields Bruckhaus Deringer (UK) to accompany the Eurobond placement. According to a ProZorro market notice, a contract of nearly 30.7 million UAH between the parties was signed on July 23, 2018.

The maintenance services of the securities of the Ukrainian company should be provided by the British company on July 1, 2020.

Note that at the end of 2017, Naftogaz's commercial director, Yuri Vitrenko, said that the company plans of enter the external debt market with a proposal of eurobonds for 1 billion dollars . In 2018, Naftogaz announced a tender for the surrender

We wrote that Naftogaz, according to the results of 2017, received consolidated profit of UAH 39.449 billion which is 2.2 times more than in 2016 (17,849 billion UAH). The company noted that the main factor in the profitability of the group is the victory in the arbitration of Stockholm . Without a positive effect of arbitrage in the event of transit of gas, the group would have suffered a net loss of 7.4 billion UAH.

Note that the current rate of 39.449 billion UAH is equivalent to about 1.5 billion dollars. Thus, the profit of Naftogaz after 2017 almost matched the profits of the Russian Gazprom which reported a profit of 100.3 billion rubles – at the current rate of 1.63 billion dollars. 19659002] According to the Deloitte audited document, sales revenue in 2017 increased by 18% (from 34.714 billion UAH) to 227.478 billion UAH, while gross margin decreased by 0.9% (from 0.629 billion UAH) to UAH 70.331 billion

In addition, the total amount borrowed by the NJC in 2017 decreased by 16.3%, or USD 11.5 billion, and at the end of the year it is 59, 3 billion UAH. At the same time, the average cost of servicing Naftogaz's debt continued to fall in 2017.

Naftogaz of Ukraine unites the country's largest oil and gas companies. The operation is a monopoly for the transit and storage of natural gas in underground storage facilities, as well as for the transport of oil by pipelines in the country.