For 9M, 2020, the companies of Smart Energy Group paid in total UAH 691.5 mln in taxes, 36% down comparing to the similar indicator of last year. From this sum UAH 302.6 mln are subsoil taxes to the budgets of all levels. Meanwhile, UAH 15.1 mln from subsoil taxes were transferred to the local budgets.
The main reason of taxes decrease by the companies is still fall of price for gas that is the key product, sold by Smart Energy. Production increase (+11% for the reported period) has only partially mitigated the impact of this factor. Meanwhile, economic crisis and fall of prices made the Group to review its investment programme for 2020 in order to reduce it and that may influence negatively the production results as early as next year.
“Recently the gas price has started to grow again. That is the result of season factor – growing demand on the resource. Nevertheless, this trend has just started and its positive impact on financial results of gas production companies should become obvious by the end of the year only. Meanwhile, for 9 months, Smart Energy has got negative dynamics of financial results, including decrease of tax payments and primarily that is about income tax, VAT and subsoil tax,” Oleksiy Zayets, FCO of Smart Energy Group, commented.
At the same time, for 9 months this year the companies of Smart Energy allocated complementarily UAH 2.5 mln for needs of the communities on the territories of which they work.
The main criterium of selection of projects for companies’ participation is the benefit for as many people as possible. Thus, in the age of pandemic COVID-19, Smart Energy took an active part in the fight against the disease spreading and its consequences. In Kharkiv oblast the Group delivered individual protective gears to the communities. And in Poltava oblast it helped to purchase the modern artificial respirating unit for Lokhvytsia District Hospital. In autumn, by financial support of Smart Energy as well, the hospital has also got increase of power of solar batteries, used for heating its premises.
In general, the companies of the Group support local dwellers in the development of their social infrastructure, primarily the educational establishments, medical, sport and cultural items. For the reported period they helped to renovate schools, monuments, hospitals, including energy saving technologies. In September-October, Smart Energy companies helped ambulance station in Yakhnyky village (Poltava oblast), purchased 370 grocery baskets for seniors, dwelling in Novovodolaha district (Kharkiv oblast), allocated UAH 110 thousand for completing repairs of heating system of Ternivskii educational complex (Kharkiv oblast).
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 Enwell Energy, 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).