11 October 2011
Galnaftogaz (UX: GLNG UK, HOLD) signed a USD 35 mln joint venture agreement with ADM Capital. The agreement will allow for filling station network expansion in Dnipropetrovsk, Donetsk and Luhansk regions. In September, Galnaftogaz signed loan agreements with the European Bank for Reconstruction and Development and International Finance Corporation to expand its OKKO-branded fuel station network to over 500, from 298 currently. Antonina Davydenko: The company’s ability to attract inexpensive financing is a positive signal for the stock, though we do not expect the market to react to the news – discussions on a JV with ADM have been on the table since the beginning of the year.