Uzbekneftegaz reduces debt and increases oil depot profitability

Tashkent, Uzbekistan (UzDaily.uz) — JSC Uzbekneftegaz held an operational review meeting for the first half of 2026 under the chairmanship of the Chairman of the Board, Abdugani Sanginov. During the session, the board evaluated the company's financial and production outcomes and outlined strategic priorities for the remainder of the year.

According to the company's press service, the total corporate debt load was successfully reduced from 3.1 to 2.7 by the end of 2025. Through refinancing existing obligations on more favorable terms and the early repayment of high-interest loans, Uzbekneftegaz saved 219 billion soums in interest expenses. Accounts receivable fell by 1.2 trillion soums compared to the beginning of the year, while operational expenditures were optimized by 1 trillion soums against initial projections—even with recent system-wide wage increases for employees.

A positive financial turnaround was recorded across the company's regional oil depots. In the first half of 2025, 14 distribution oil depots closed the reporting period with an aggregate net loss of 36.5 billion soums. In contrast, during the first half of 2026, these depots successfully commercialized 250,000 tons of gasoline and 114,000 tons of diesel fuel, generating a net profit of 5.4 billion soums. Management attributed this recovery to deep structural reforms, the comprehensive digitalization of supply chain tracking, and upgraded corporate governance.

However, the meeting also addressed critical production shortfalls. The company missed its targets for diesel fuel and fuel oil (mazut) production due to restricted raw material imports caused by the volatile global geopolitical situation. Management instructed the relevant departments to implement corrective actions to eliminate these deficits before the end of the year.

Special attention was directed toward preparing infrastructure for the autumn-winter season. In light of the anomalous weather anomalies and severe windstorms experienced across Central Asia in recent years, facilities have been mandated to ensure uninterrupted production operations and establish robust, proactive reserves of lubricants, motor fuels, and automotive gasoline.

In natural gas extraction, the board ordered an engineering review of decommissioned or suspended wells to reactivate sites holding technical potential. Moving forward, the company will institute hourly performance monitoring for every active well. Directors who oversighted unauthorized drops in extraction or processing volumes will be required to submit formal written explanations detailing immediate remediation measures.

For the second half of the year, corporate leadership prioritized accelerating winterization programs, implementing strict energy conservation systems, developing internal electricity generation sources, and accelerating joint investment projects with partners from China. Additionally, as part of an initiative to upgrade employee working environments, the company plans to renovate and commission 26 labor dormitories and 17 mobile trailer homes by the end of the year.