Ukrnafta decreases sales, lifts profit in 1Q12

Ukrnafta (UNAF UK), an integrated oil & gas company, reported a 4% yoy decrease in revenue to USD 747 mln in 1Q12. Gross profit improved 3.7x yoy to USD 167 mln on decreased operating costs and royalties. The latter fell 19% yoy to USD 191 mln. As a result, EBITDA grew 5.2x yoy to USD 157 mln (EBITDA margin reached 21% vs. 4% a year ago). Ukrnafta posted USD 103 mln in net income (+29x yoy) in 1Q12. No improvements, though, were visible on the operating side: output of oil and condensate amounted to 544 kt (-6% yoy, -24% over three years) and gas production came to 0.50 bln cm (-6% yoy, -36% over three years).