Gas sales of Georgian Oil and Gas Corporation down
BAKU, Azerbaijan, Sept.28
By Tamilla Mammadova – Trend:
Revenues of Georgian Oil and Gas Corporation (GOGC) remained flat at $160.5 million in 1H2020, Trend reports via the Georgian Galt & Taggart investment company.
As reported, sale of gas, which makes up two thirds of total revenue for the company, was down 1 percent year-on-year to $105.7 million. Notably, higher sales volume (+7.6 percent year-on-year to 921 mm/cm) was not enough to outweigh the negative effects from lower gas sales price, which was down 8 percent year-on-year.
Electricity sales were up 13.7 percent year-on-year in lari terms as 'Gardabani 2' plant has successfully launched operations. Other revenue streams have remained mostly stable in 1H2020.
Gas segment gross profit margin declined from 8.3 percent in 1H2019 to 6.6 percent in 1H2020.
Strong profitability of the electricity segment helped GOGC’s consolidated margins in 1H2020.
GOGC signed an agreement with EBRD on 217 million euro loan facility in September, 2020. The loan has up to 10-year tenure and bears 3.3 percent interest rate. The facility will be used to refinance the company’s existing $250 million Eurobond, maturing in April 2021, as COVID-19 related disruptions in international capital markets prevents the company to refinance its Eurobond on favorable terms.
The decision to provide financing from EBRD was made due to importance of GOGC as utility provider in Georgia. The project involves a comprehensive Technical Cooperation package, aiming major reform of the sector (development of gas exchange in the country) in addition to improvement of company’s corporate governance and gender equality (support the role of women in technical positions in the energy sector).