Tashkent, Uzbekistan (UzDaily.com) -- In 2023, the revenue of Uzbekneftegaz reached 27.44 trillion soums, which is 11.4% higher than the previous year. This information was announced by the company’s press service.

The revenue growth was driven by an increase in natural gas tariffs since November 2023 and an expansion in production volume at the Uzbekistan GTL plant compared to 2022, as added by the company.

EBITDA, reflecting the Group’s operating profitability, rose to 13.5 trillion soums, surpassing the 2022 level by 21% (11.14 trillion soums).

The growth in EBITDA was supported by a revenue increase from Uzbekistan GTL by 3.06 trillion soums. Measures were also taken to stabilize production costs, leading to significant EBITDA growth of 2.35 trillion soums compared to 2022, as noted in the first half of 2024.

Financial expenses increased by 1.73 trillion soums in 2023 compared to the previous year, primarily due to rising interest rates in global markets such as a 25.3% increase in SOFR and a 79.3% increase in EURIBOR.

Losses from foreign exchange operations increased by 3.02 trillion soums in 2023 compared to 2022 due to significant strengthening of foreign currencies against the soums throughout the year.

Despite a 21% increase in EBITDA in 2023, net profit decreased by 78%. This decrease is attributed to higher financial expenses and foreign exchange losses; however, effective cash flow management led to a reduction in accounts receivable.

The Group’s operational efficiency improved, contributing to the growth of key financial indicators such as revenue and EBITDA. The Group’s operating margin increased from 26% in 2022 to 29% in 2023. Liquidity also improved, with current assets exceeding current liabilities by 1.04 trillion soums in 2023, contrasting with liabilities exceeding assets by 7.01 trillion soums in 2022.

Considering the rise in interest rates in the second half of 2023, the Group focused on reducing overall debt burden, resulting in a decrease in net financial debt by 742 billion soums.

Government measures were implemented, including the increase in natural gas prices. Specifically, starting from 15 November 2023, the price of natural gas was raised from 340 to 450 soums per cubic meter, and it will reach 600 soums per cubic meter from May 2024. Additionally, measures were undertaken to optimize production costs in 2024 by 1 trillion Uzbek soums.

The government organized financing for natural gas payments to the main counterparties of Uzbekneftegaz to settle their accounts payable. In 2023, 1.8 trillion soums was allocated, and in the first quarter of 2024, an additional 2.7 trillion soums was allocated.

In 2024, Uzbekneftegaz, in collaboration with the Ministry of Economy and Finance, conducted debt restructuring of Uztransgaz towards Uz-Kor Gas Chemical JV. These measures aim to improve the asset and liability structure of all parties involved, positively impacting the credit rating of Uzbekneftegaz and improving its financial position through increased access to Society’s revenues.