Smart Energy Group paid nearly UAH 1 bln in taxes for 2020

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For 12M, 2020, the companies of Smart Energy Group paid in total UAH 948.5 mln in taxes, including UAH 430.3 mln fee for subsoil use to the budgets of all levels. Thus, UAH 21.5 mln of subsoil tax were paid to the local budgets.

The tax payments by Smart Energy companies decreased by 27% y-o-y. The main reason remains fall of gas price that started a year before and impacted the key tax payments such as income tax, value added tax and subsoil tax. The production growth by 8.6% y-o-y and gradual renewal of gas price growth, being observed since H2, 2020, just partially mitigated the impact of this factor.

“In autumn last year the price for gas started its slow growth. However, that influenced insignificantly the financial results for 2020 because of the fact that for nearly three quarters the price was the lowest for the last several years. The previous steps of the government in order to support gas producers such as decrease of subsoil tax and stimulating 12% subsoil rate for new wells had positive influence on results 2020 because of new drillings. However, unfortunately, we haven’t seen any new movements in this direction,” Oleksiy Zayets, FCO of Smart Energy Group, commented.

Besides paying all taxes for the reported period, the companies of Smart Energy Group allocated complementarily UAH 3.56 mln for needs of the communities on the territories of which they operate. This fund includes UAH 776 thousand that Arkona Gas-Energy paid to the budget of Poltava Oblast Council within the bilateral agreement. The money was used for school construction in Zavodske town (Poltava oblast).