For Q1, 2020, Smart Energy Group paid UAH 314.8 mln in taxes, down 38% y-o-y. Although production increase, the subsoil taxes has gone down as well. Totally the companies of the group paid UAH 119.8 mln to the budgets of all levels, down 42% against Q1, 2019.
“Significant decrease of prices for hydrocarbons during a long period of time affected our companies’ payments to the state budget. That is obvious from the items that suffered the most: income tax, value added tax and subsoil tax. Clearly, in this situation production results are not able to ensure growth of financial outcomes. It is also impossible to guarantee the further stable growth of production itself when the funding sources are getting less. Currently, we are taking different measures to provide sustainable work of our companies, but expecting the government, in its turn, will support gas production as a strategically important industry for this difficult period of time,” Oleksiy Zayets, FCO of Smart Energy Group, commented.
For the reported period factually UAH 6 mln were transferred to the local budgets. Prom-Energo Product LLC and PrJSC Ukrgazvydobutok transferred UAH 3.2 mln to the budgets of all levels of Kharkiv oblast and the Representative Office of Regal Petroleum Corporation Limited transferred UAH 2.8 mln to the budgets of Poltava oblast.
As reported earlier, in Q1, 2020, Smart Energy Group of companies produced cumulatively 96.3 mln m3 of gas and 8.8 Ktonnes of condensate, up 9.0% and 7.5% respectively against the results of Q1, 2019.
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 (the Representative Office of Regal Petroleum Corporation Limited and Arkona Gas-Energy LLC) and Kharkiv regions (Prom-Energo Product).