Smart Energy Group paid UAH 519 mln in taxes for H1, 2020

Smart Energy Group paid UAH 519 mln in taxes for H1, 2020
For 1H, 2020, the companies of Smart Energy Group in total paid UAH 519.4 mln in taxes, 37.2% down comparing to the similar indicator of last year. From this sum UAH 213.9 mln are subsoil taxes to the budgets of all levels. Meanwhile, UAH 10.7 mln from subsoil taxes were transferred to the local budgets.

The main reason of taxes decrease by the companies against the similar period last year is fall of prices for gas and condensate that are sold by Smart Energy. Production increase for the reported period has partially mitigated the influence of this factor but because of reduction of the investment programme the positive dynamics has started to slow down: in 2019 for the same period the production grew up by 40% against 9.5% this year.

Significant decrease of prices continue to influence negatively our financial results in total and volume of taxes in particular. During the year the price for gas has decreased more than twice and that explains reduction of taxes paid by 37%. Unfortunately, production increase can’t compensate for this trend and can only slow down it. Nevertheless, if in the nearest future the government does not introduce the number of fiscal benefits, further production increase will be impossible and the downturn will start. In its turn, that will significantly decrease financial inflows to the budgets of all levels,” Oleksiy Zayets, FCO of Smart Energy Group, commented.

Despite the external negative factors, the companies of Smart Group continue not only to pay all taxes at full extent, but also to help the communities on the territory of which they work. In particular, for the reported period the companies allocated UAH 1.9 mln for the local social projects. Thus, the Representative Office of Regal Petroleum Corporation Limited provided nearly UAH 1.2 mln to Lokhvytsia District Hospital which succeeded to purchase individual protective gears for medical workers, oxygen, tests for identification of infected people and a modern artificial lung ventilation apparatus. Meanwhile, Ukrgazvydobutok and Prom-Energo Product that are working in Kharkiv oblast, allocated UAH 255,000 and UAH 90,000 UAH respectively for the needs of local communities. The majority of funds have been used for local infrastructure as well as for development of monuments for the heroes of the Second World War.


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 Enwell Energy, a listed British company having assets in Poltava (the Representative Office of Regal
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