PJSC Ukrnafta reported earnings results for the second quarter and earnings and production results for the first half ended June 2016. For the quarter, profit before tax was UAH 616 million and net profit was UAH 500 million.

For the first half, the company swung to a net loss of UAH 10.091 million (about $407,000 at the current exchange rate) under IFRS, compared with a net profit of UAH 3.910 billion in the same period last year. Net revenue fell 42.8% to UAH 8.894 billion in first half 2016 and the gross profit fell 37.3% to UAH 4.774 billion. The operating loss amounted to UAH 612.531 million compared with an operating profit of UAH 4.552 billion in first half 2015. However, key factors in the negative financial performance in first half of 2016 (net loss UAH 10 million) are fines and penalties for unpaid royalties and taxes of previous periods (historic debt).

Oil extraction for the period January June 2016 amounted to 763,000 tonnes, a 10,9% decrease compared to the similar period in 2015. Gas production for the period January June 2016 amounted to 655 million m3, a 14,7% decrease compared to the similar period in 2015. LPG production for the period January June 2016 amounted to 64,800 tonnes, a 17,7% decrease compared to the similar period in 2015.