By Olena Harmash
KYIV (Reuters) -The prospects of Ukrainian state-owned energy company Naftogaz are better this year following a loss of 79.1 billion hryvnias ($2.14 billion) in 2022 because of the impact of Russia’s invasion, chief executive Oleksiy Chernyshov said on Thursday.
He said the company’s infrastructure and operations remained under threat after almost 17 months of war but Naftogaz planned to increase its domestic gas production this year and was trying to end a months-long default on its Eurobonds.
“Prospects are improving, and we have robust fundamentals. Naftogaz is the backbone of the energy security of Ukraine,” Chernyshov said during a call with bondholders.
In the first quarter of this year, Naftogaz reported a 7.7-billion-hryvnia profit, compared to a loss of 24.6 billion hryvnias a year ago.
Naftogaz on Thursday launched consent solicitation to restructure its Eurobonds due in 2022 and 2026. The company was locked in talks with bondholders for months.
Chernyshov said exiting the default on its 2022 bonds would help the company facilitate discussion on access to finance with its lenders, in particular, international financial institutions.
He said the company had prepared a $1.6 billion capital expenditure plan to increase gas production.
In May, Naftogaz said it had reached agreements with investors on how to restructure its Eurobonds due in 2022 and 2026.
The company hopes to finalise the process by the end of summer. “Our proposal reflects the best terms we can make under the current circumstances as we call on our noteholders to support this offer,” Chernyshov said.
($1 = 36.9260 hryvnias)
(Additional reporting by Anna Pruchnicka, Editing by Timothy Heritage)
