Naftogaz™s 2007 Revenue Down 22%, Net Income up 46%

Naftogaz of Ukraine posted its 2007 non-consolidated financials. The company’s Revenue decreased 22%, to USD 3,421 mln, EBITDA decreased slightly, by 2.4% to USD 659 mln. Net Income climbed by 46% to USD 619.5 mln, mainly on the back of lower corporate tax, USD 68 mln, or 9.9% effective rate vs. 16.1% last year.

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Income Statement Summary
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                                    2006   2007
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Net Revenues                4,400 3,421
Change yoy                          -22.2%
Gross Profit                    492   785
Gross margin                11.2% 22.9%
EBITDA                          676   659
Change yoy                          -2.4%
EBITDA margin             15.4% 19.3%
Depreciation                    (3)   (3)
EBIT                             673   656
EBIT margin                 15.3% 19.2%
Interest Expense           (156) (201)
Other Inc/(Exp)             366   232
PBT                              883   688
Net Income                  424   619
Change yoy                        46.2%
Net Margin                  9.6%  18.1%
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Balance Sheet Summary
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                            2006   2007
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Current Assets                3,435  3,050
Cash & Equivalents           109     82
Fixed Assets                    5,158  5,908
Total Assets                      8,593  8,958
Shareholders’ Equity          2,276  3,663
Current Liabilities              4,025  2,976
ST Interest Bearing Debt   360    147
LT Liabilities                     2,292  2,319
LT Interest Bearing Debt   1,891  2,042
Total Liabilities & Equity    8,593  8,958
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Ratios
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                                    2006   2007
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Leverage                       2.78   1.45
Debt/Equity                   0.99   0.60
LT/Total Debt                 0.84   0.93
Debt/EBITDA                 3.33   3.32
EBITDA/Interest Exp.     4.33   3.29
Current Ratio                0.85   0.98
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