N&LPG

N&LPG is one of the largest players in the Ukrainian gas utility market. With over 9,700 km of gas pipelines we distribute to our 1.3 million customers more than 1 billion cubic meters of gas every year. N&LPG operates a total of 9 subsidiaries in the Kherson and Poltava regions, where we provide our services to both residential and industrial gas users. While the market in those regions is generally regulated by the Government, N&LPG owns the perpetual and exclusive right to utilize (and maintain) the existing gas distribution networks - which gives us a de-facto monopoly position and the ability to distribute product via our transportation network. N&LPG's business in Poltava - specifically in the Kremenchuk and Gadyach municipalities - is focused on the liberalised wholesale industrial sector. In the regulated gas market of the Kherson region we mainly provide to the general population. We are a growing company. In 2016, N&LPG increased its revenue to €87 million (+43%), with net profits at €1.6 million (+248%). The results of the first half-year of 2017 confirm the continuation of this rapid growth. Overall, N&LPG has four business areas: gas supply systems (74% of total revenue), gas transportation (17%), liquefied gas supply (2%) and infrastructure development (1%). Key region opportunities for the company include growth of gas supplies, increasing the pipelines´ length by 28% to 13,543 km by 2020, and increasing the number of customers with gas connections in Kherson (where N&LPG has 100% market share) and in the Poltava region (45% market share).