Cadogan utilises its balance sheet position to support revenue and cash generation by trading gas. The Group imports gas from Poland and Slovakia, acquires it from local producers and sells it to Ukrainian clients.
The Group entered gas trading in 2014, pioneering the reverse flow, (the import of gas via Europe using pipelines designed to deliver Russian gas to Europe) and captured the benefits of being an early entrant in a developing market.
The market has subsequently matured, with an increasing number of entrants. Nonetheless, there remains an opportunity for the Group to continue to benefit from trading operations, with revenues contributing to achieving cash neutrality and the commercial competences acquired helping maximise the value of its own production.
The cash used to back-up credit lines in Ukraine remains in UK banks and can be released at very short notice if required to support the Company’s core strategy of acquiring select E&P assets.
