Galnaftogaz Releases 1H07 UAS Consolidated Accounts

Yesterday Galnaftogaz (GLNG: U/R) reported its 1H07 consolidated financials prepared under local accounting standards (UAS). The company posted net revenue increase of 21.2% yoy, 88.1% higher EBITDA, and 14.1% decrease in net income. Respectively, EBITDA margin strengthened to 5.2%, from 3.3% in 1H06, while net margin decreased from 1.6% to 1.1%. Vladimir Nesterenko: Galnaftogaz 1H07 UAS consolidated financials indicate positive dynamics for sales and profitability, which is consistent with our forecasts. However, we cannot directly compare reported figures to our forecasts, which were based on IFRS accounts. Earlier we forecasted the company’s consolidated sales to grow by 27.3% in 2007, and EBITDA margin to improve from 5.4% to 6.1%.