Ukrnafta improves P&L, increases tax debt in 3Q16
26 October 2016
Ukraine’s leading crude oil producer and gasoline retailer Ukrnafta (UNAF UK) reported a 27% yoy decrease in net revenue to UAH 15.30 bln in 9M16, according to its Oct. 25 filing. Its 9M16 EBITDA fell 88% yoy to UAH 0.70 bln, mostly due to large “other operating losses”, and net income fell 89% yoy to UAH 0.43 bln.
The 9M results imply the company improved its P&L indicators in 3Q16 – its revenue grew 17% yoy to UAH 6.41 bln, EBITDA grew 42% yoy to UAH 0.63 bln and its bottom line almost tripled yoy to UAH 0.44 bln.
At the same time, the company’s receivables continued to increase in 2016, reaching UAH 16.06 bln as of end-September (+17% YTD and +18% qoq). This resulted in a further increase of Ukrnafta’s payables to the state budget, which reached UAH 12.18 bln (+15% YTD and +9% qoq).
Alexander Paraschiy: It’s particularly worrying that with new top management, which has been running the company for about a year, not only was unable to start resolving its tax debt issue (which emerged in 2015 with the previous management), but also exacerbated the problem during 2016. Adding to that the inability of the company’s key shareholders, the government and Igor Kolomoisky to agree upon the parameters of tax debt restructuring (with two scheduled shareholders meetings having failed), we see that Ukrnafta’s future looks very uncertain now.
