Ukrnafta decreases oil output by 4% y-o-y in 1H11, gas production by 14% y-o-y

In 1H11, Ukrnafta’s (UX: UNAF UK) oil output declined by 4% y-o-y to 1.059 mln mt, and condensate output fell by 39.4% y-o-y to 89.2 ths mt. Gas production decreased by 14.1% y-o-y to 1.076 bln m3. In 2010, Ukrnafta’s  oil output shrank by 2.2% y-o-y to 2.2 mln mt, condensate output slumped by 10.6% y-o-y to 269.8 ths mt, and gas output declined by 17% y-o-y to 2.4 bln m3. Antonina Davydenko: Ukrnafta’s production results were expected given 5M11 output. There have still been no clear action taken to reverse declining production and we expect  this negative trend to continue until yearend.