Oil and Gas
October 26, 2010
Ukrnafta: 3Q10 Results - Gas Sales Lift Revenue - UkrNafta posted surprisingly strong financial results for 3Q10. The company reported revenue of USD 791mn (+53% QoQ), EBITDA of USD 190mn (+28% QoQ) and net profit of USD 123mn (+27% QoQ) for 3Q10. We attribute the rise in these key income statement items to the higher price which Ukrnafta received for its oil and, especially, its natural gas during the period. The price for Ukrnafta’s oil at Ukraine’s monthly domestic auctions grew by 3.4% QoQ, to USD 61/bbl, while the price paid by the government for Ukrnafta’s gas jumped by 2.2x to USD 58/tcm. We have a BUY recommendation on the UNAF stock.
