Ukrnafta Adds Three New Fuel Stations Since December 2006

In its press release yesterday, Ukrnafta (UNAF: SELL) said it currently has 563 fuel stations operating. Vladimir Nesterenko: Ukrnafta has not disclosed its number of stations since December last year (560), now it’s clear that its retail expansion program has been either put on hold or completely stopped. This is not particularly surprising, as low CapEx in downstream expansion approved at the company’s the May AGM (USD 25 mln) already suggested much fewer stations than we forecasted earlier (748). Fewer stations mean around USD 100 mln lower net revenue in 2007 than we expected.