Ukraine’s state-owned gas giant, Naftogaz Group, has registered a net profit increase in 2024 despite Russian attacks.
The company posted a net profit of Hr.38 billion ($920.1 million) in 2024 – a Hr.15 billion, or 64%, increase from the previous year, according to its Thursday press release.
All its core business units showed growth in gas production, it said.
“Achieving this growth requires significant effort even in peacetime – during wartime, it borders on the impossible,” Acting Chairman of the Board of Naftogaz Roman Chumak said.
It added that UkrGasVydobuvannya, the largest gas producer in Central and Eastern Europe under the Naftogaz Group, nearly doubled its profit to Hr.20.9 billion ($506.1 million) in 2024.
UkrGasVydobuvannya launched 83 new wells and reached a three-year high in daily production of 38.9 million cubic meters. It also increased commercial gas output to 13.9 billion cubic meters, up from 13.2 billion in 2023, the press release says.
Naftogazʼs gross profit rose to Hr.89.1 billion ($2.2 billion), up from Hr.48.5 billion ($1.2 billion) the year before. Operating profit reached Hr.51.1 billion ($1.2 billion) – a jump of Hr.13.3 billion ($322 million), or 32%.
Naftogaz Group said it paid Hr.104.3 billion ($2.5 billion) in taxes – 7% of Ukraine’s total budget revenues.
The parent company, NJSC Naftogaz of Ukraine, ended last year with Hr.23.9 billion ($578.7 million) in profit after a loss of Hr.800 million ($19.4 million) in 2023, the company said.
No more losses for state budget
Naftogazʼs Ukrtransnafta, the second largest oil pipeline operator in Europe, recorded Hr.3.7 billion ($89.6 million) in profit. Ukrnafta, the largest oil and gas producer in Ukraine, posted Hr.16.4 billion ($397.1 million), remaining profitable for the second consecutive year.
“Naftogaz of Ukraine,” a gas supply company, returned to profitability after a Hr.2 billion ($48.4 million) loss in 2023. Payment collection improved by 10 percentage points, hitting 98%. Naftogaz Trading cut its losses by over Hr.3 billion ($72.6 million).
For the first time in years, gas sales operations were profitable. The segment’s net operating result reached Hr.2.3 billion ($55.7 million), compared to a Hr.22.3 billion ($540 million) loss in 2023.
Gas distribution also expanded, with Naftogaz Distribution Networks delivering 12.3 billion cubic meters, up from 3.8 billion. Payment discipline rose to 97%, a 14-point gain.
Despite Russian attacks on storage infrastructure, Ukrtransgaz, a Ukrainian gas storage operator, posted a Hr.277 million ($6.7 million) profit. Naftogaz said this helped maintain foreign trader confidence.
Naftogaz also boosted energy generation. Electricity sales rose by 24%, and heat by 4%. New decentralized generation projects added 177 megawatts (MW) from 29 engine units.
Preparations for Upcoming Winter
To start preparing for the 2025 winter heating season, Naftogaz has secured €430 million ($489 million) from the European Bank of Reconstruction and Development (EBRD), Kyiv Post previously reported.
In addition, the EBRD is lending Naftogaz €270 million ($307 million) to finance emergency gas purchases for the next two heating seasons, EBRD Vice President Matteo Patrone told Kyiv Post.
Russian strikes on Ukrainian gas infrastructure in recent months of 2025 have allegedly deprived Ukraine of 50% of its domestic production, meaning the country will need to import more gas for the heating season from European partners.