Galnaftogaz’ unconsolidated profit drops 11x y-o-y in 1H11

Galnaftogaz (UX: GLNG UK) decreased its net unconsolidated income according to Ukrainian Accounting Standards by 11x y-o-y to UAH 14.67 mln in 1H11, according to a filing yesterday with the State Securities & Exchange Commission. Net revenues were down by 2.3 x y-o-y to UAH 1.705 mln. The decrease in net income was partially caused by a one-off item – UAH 48.32 mln in fixed assets revaluation. Galnaftogaz said it changed its accounting practices for its retail sales by moving them onto subsidiary accounts. Antonina Davydenko: The significant change in accounting procedures makes the released financials unsuitable for comparison to previous accounts. We are awaiting consolidated IFRS accounts to confirm our sales projections 2011E at USD 1.3 bln, EBITDA at USD 87.5 mln, and net income at USD 67.5 mln.