15.Jul .2021 10:30

GOGC Profit Dips 38-Fold In 2020

 GOGC Profit Dips 38-Fold In 2020
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Georgian Oil and Gas Corporation was one of the most profitable state-owned enterprises in the previous years. In 2019, the company's profit amounted to 120.1 million GEL. However, as a result of the crisis and the depreciation of the GEL exchange rate in 2020, the company's profit was down by 97% and amounted to 3.2 million GEL.

According to the financial report, the company’s revenue increased by 124 GEL in 2020 and reached 997 GEL. The document reveals that the fastest growing segment by revenue for the corporation is electricity generation, which is related to the commissioning of the Gardabani 2 thermal power plant.

The company's revenues by segments are as follows:

• Revenue from natural gas sales - 585 million GEL, increase of 2.8% y-o-y;
• Revenue from electricity sales - 333 million GEL, increase of 48% y-o-y;
• Revenue from the sale of crude oil - 9.5 million GEL, decrease of 37% y-o-y.

The Oil and Gas Corporation explains profit decrease by the loss caused due to the depreciation of GEL by 14%. The company’s loss has totaled to 103 million GEL, as its financial liabilities, which are denominated in foreign currency, are increased significantly due to the depreciation of the nominal exchange rate.

As of December 31, 2020, the assets of the Oil and Gas Corporation amounted to 1.84 billion GEL. The organization owns a system of main gas pipelines and new thermal power plants.