Ukrnafta ups net revenues 92% yoy to USD 1.5 bln in 9M08

Ukrnafta released its 9M08 UAS financial results yesterday: net revenues rose 92% yoy to USD 1.5 bln, EBITDA grew 53% yoy to USD 463.2 mln, net income increased 2.3x yoy to USD 355.9 mln (the numbers are converted into dollars at the average official NBU rate over the respective period). According to the company’s press release distributed last week, in 9M08 it reduced oil and condensate sales by 12.1% yoy to 2,033.7 ths mt. Vladimir Nesterenko: The government is continuing to push Ukrnafta to distribute its 2006-2007 earnings, and the issue will be considered at the company’s EGM scheduled on December 2. In our view, the probability that the EGM won’t take place, like its previous three, remains high. However, the growing return on alternative investments, on the back of shrinking liquidity in the market, may provide additional motivation for Ukrnafta’s private shareholders to approve a dividend payout. Over 2006-2007, the company earned USD 723 mln in profits, 13% lower than its current MCap.