Ukrnafta’s oil output falls 8.6% y-o-y, gas production drops 14% y-o-y in 2M11

During 2M11, Ukrnafta (UX: UNAF UK) decreased oil production by 8.6% y-o-y to 339.2 ths  mt, gas condensate production by 36.3% y-o-y to 31.3 ths mt and gas production by 14.2% y-o-y to 358.8 mln m3, Interfax reported on Friday, citing the Energy Ministry of Ukraine. In 2010, Ukrnafta’s gas output declined 17% y-o-y to 2.4 bln m3, gas condensate output slumped 10.6% y-o-y to 269.8 ths mt, and oil output shrank 2.2% y-o-y to 2.2 mln mt. Antonina Davydenko: Though the drop in production was in line with declines in previous months, we expect the news to have a slight negative impact on the stock in the short run.