Naftogaz to Purchase 3.46 bcm of Gas Not Sold By Ukrnafta in 2006-07

The Cabinet has allowed Naftogaz of Ukraine, Ukrnafta’s (UNAF: U/R) majority shareholder, to purchase 3.46 bcm of natural gas not sold by the company during 2006-07. The price was set at UAH 265.65 (USD 52.6) per ths m3, which equals the price at which Naftogaz bought gas from Ukrnafta in 2007. Vladimir Nesterenko: The news is positive but immaterial for the stock. We estimate the impact on the company’s P&L will be minor: around USD 24-28 mln addition to net revenues, and plus a maximum USD 20 mln to EBITDA. Implied impact on Ukrnafta’s share price should not exceed USD 0.4 per share.