Ukrnafta trims production decline in 9M12

Ukrnafta (UNAF UK), Ukraine’s largest oil producer,decreased oil production by 3.0% yoy to 1,527 kt in 9M12 (vsa 4.3% yoy drop in 8M12), Interfax reported yesterday according to its source in Ukraine’s Energy Ministry. The company’s gas production fell by 6.2% to 1.51 bcm while gas condensate output grew 8.8% to 152 kt for the period.

Roman Dmytrenko: Our calculations indicate that after a 5.9% yoy oil output increase in August, the  company’s oil production growth accelerated to 6.9% yoy in September. A second consecutive month of growth in oil production might indicate that the company is on the verge of finally turning around its multi-year declining output. We note that Ukrnafta will post flat yoy oil output in 2012 if it can maintain its production at the 179 kt per month it achieved in September throughout 4Q12.