BAKU, Azerbaijan, November 1
By Tamilla Mammadova – Trend:
Georgian Oil and Gas Corporation’s (GOGC) revenues increased by 17.8 percent year-on-year, reaching $160.4 million in 1H2019, Trend reports via the corporation's message.
GOGC is a multidisciplinary company operating in the oil, gas and energy sectors. Company, as the owner of the main gas pipeline system of Georgia, plays an important role in ensuring the energy security of the country.
The increase in revenues was due to a 19.8 percent year-on-year ($106.7 million) increase in sale of gas.
Meanwhile, revenues from electricity generation, second largest revenue category, was also up by 21.6 percent year-on-year, while lari-denominated gas pipelines rental revenues were down by 7.1 percent year-on-year.
The operating expenses of GOGC increased by 14.9 percent year-on-year to $130.9 million in 1H2019. GOGC’s strong financial position is attested by a one-notch rating upgrade from S&P in October 2019 to BB- outlook stable.
The company said that over 90 percent of the construction work on Gardabani II HPP has been completed as of October 2019.
At the same time, gas demand was mostly affected by increased demand from HPPs as well as from commercial sector. Notably, increased demand from HPPs was a result of reduced hydro generation in 1H2019 (down 9.7 percent year-on-year) due to unfavorable hydrological conditions.
Importantly, gas sales to commercial sector were recorded for the first time, and this new category lifted average gas sale price to $126.6/mcm in 1H2019 compared to 115.5/mcm in 1H2018.
Meanwhile, Gardabani TPP operated for 165 days during 1H2019, compared to only 134 days in 1H2018, as hydrogeneration reduced. As a result, revenue from electricity generation was up by 21.6 percent year-on-year to $40.6 million in 1H2019.