For 12 months of 2019 Smart Energy Group paid nearly 1.3 bln UAH in taxes, including 633.4 mln UAH in subsoil taxes to the budgets of all levels. Meanwhile, 31.7 mln UAH in subsoil taxes were paid to the local budgets.
The companies of Smart Energy Group paid all taxes at full extent and, on top of all, allocated additional 3.2 mln UAH for different social projects in the regions where they are operating. In particular, the Representative Office of Regal Petroleum Corporation Limited paid 1.8 mln UAH for the development of the social infrastructure of Lokhvytsia and Chornukhy districts in Poltava oblast, while Ukrgazvydobutok and Prom-Energo Product that are working in Kharkiv oblast, paid 550,000 and 860,000 UAH respectively. The key funds were allocated to co-finance the social project Implementation of Innovative Energy-Efficient Actions to Supply Electricity on Alternative Energy Basis (Solar Energy) for Lokhvytsia Central District Hospital (Poltava oblast), to repair roads and water pipes locally, to repair children’s educational establishments and co-finance nutrition there. In total, in 2019, the group of companies allocated by 10% more than in 2018 for these purposes.
The growth of hydrocarbons production by 25% y-o-y resulted the partial mitigation of the negative impact the decrease of gas price by 32% and devaluation of the foreign currency against the Ukrainain hryvnia in 2019 had on the taxes by the companies of Smart Energy Group.
“Siginificant decrease of gas price couldn’t have no influence on our financial results and, consequently, on budget receipts. Meanwhile, due to decreased subsoil tax rates and stimulating 12% subsoil rate for new wells that became valid in 2018, we continue to increase production intensively. Hopefully, such initiatives and the following deregulation of the gas market of Ukraine will encourage the interest of foreign investors in Ukrainian gas production and the industry will get finance, driving its development to the new level”, commented Sergii Glazunov, CEO of Smart Energy Group.
Smart Energy Group has been among TOP-100 largest taxpayers according to the Office of major taxpayers of State Fiscal Service of Ukraine for several years in row.
Reference
Smart Energy is a part of Smart-Holding and is in charge of implementing exploration projects, commercial development of the hydrocarbon deposits.
Oil & Gas business block of Smart Energy is represented by gas producing Ukrgazvydobutok (Kharkiv region) and Regal Petroleum, a listed British company having assets in Poltava and Kharkiv regions (Prom-Energo Product).