Oil and Gas
January 31, 2011
Ukrnafta: 4Q10 Results Preview - Good, But Not Good Enough - We expect Ukrnafta to report a healthy profi t of USD 123mn for 4Q10, bringing its net profi t for FY10 to USD 436mn. In our view, the favorable fi nancial results for FY10 will not be enough to drive UNAF’s shares higher, as they appear overbought to us. Ukrnafta is currently trading at an all-time high of UAH 632 per share. We think the stock has a strong support level at UAH 600 and will be drifting sideways over the next couple of weeks. We recommend taking a short position in UNAF if it falls below UAH 595.
