BAKU, Azerbaijan, July 12. SOCAR Energy Ukraine has reduced expenditures by 50 percent, director of SOCAR Energy Ukraine Igor Orlov told Forbes, Trend reports.
“We had positive financial results as of 2021, while our expectations for 2022 are quite worse. Everything will depend on the situation in the country. Our revenues are affected by the growth of prices for oil products, logistics and the decrease in sales. We have reduced our expenditures by around 50 percent in order to stabilize the situation. We have cut costs for stations, repairs and postponed a number of investment project. We’re now engaged in charity projects, such as restoration of a school in Irpin. We will resume investments in large-scale projects after the war. We hope for further expansion of our network in Ukraine,” he explained.
Orlov noted that the company will calculate its overall damage after the war.
“We don’t have destroyed filling stations. Four of six filling stations in Kharkiv have been shut down, while the others have been operating uninterruptedly. Our sales decreased by 30-50 percent in the first months of the war. We recovered to the pre-war level of diesel sales in June and reached 50 percent of the pre-war level of gasoline sales due to its shortage. In accordance with the agreements with the government, the retail sales can’t rise above 52 UAH per liter of gasoline and 58 UAH per liter of diesel. This allows filling stations to earn 5 UAH per liter,” he added.