Galnaftogaz sales up 89% yoy, EBITDA 50% in 1Q08

Galnaftogaz (GLNG: BUY) released on Friday its 1Q08 accounts consolidated under local accounting standards (UAS). The company’s net revenue grew 89% yoy to USD 227.7 mln, EBITDA rose 50% yoy to USD 12.3 mln, and net income increased by 76% to USD 4.7 mln. Vladimir Nesterenko: Galnaftogaz’ quarterly results generally fit our full-year forecast. CapEx was surprisingly low, USD 17.9 mln, possibly due to lagging network expansion, which could be a worrying sign for the company.

Summary of Galnaftogaz financials, USD mln

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               2008E IFRS   1Q08 UAS   2007E IFRS   1Q07 UAS
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Net revenue           946.4      227.7        664.4      120.6
chg yoy, %              42.5       88.8         29.1        n/m
Gross profit             89.6       32.9         59.0       17.5
Gross mrg, %          9.5        14.4          8.9       14.5
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EBITDA                  55.8       12.3         34.1        8.2
chg yoy, %             63.5       50.2         30.0        n/m
EBITDA mrg, %       5.9        5.4           5.1          6.8
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Net income           14.1       4.7          6.3           2.7
chg, yoy               123.7     75.7        -24.0        n/m
Net mrg, %           1.5        2.1          1.0           2.2
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Equity                 157.0      155.8         94.6       76.6
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Operating CF         47.5     (33.3)       (15.2)      (7.7)
CapEx                 (162.9)     (17.9)       (77.4)      (6.9)
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Net debt               266.6      204.2        200.7      107.6
Debt/Equity          1.70       1.31         2.12       1.40
Leverage               2.16       1.90         2.71       2.20
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Source: Company data & CC estimates