UNAF's Crude Shipments Up 2.5% In 2006

In 2006 Ukrnafta increased shipments of crude oil and condensate by 2.5% yoy, to 21.3 mln bbl. Meanwhile, oil & condensate sales grew 63% yoy, from about 13.1 mln bbl reportedly sold in 2005. Vladimir Nesterenko: The increase in shipments mirrors 2.2% yoy increase in oil & condensate output in 2006. Its no surprise that the company’s sales jumped in 2006 as Ukrnafta ceased its tolling operations with affiliated refineries. Since May of last year we have based UNAF valuations on the assumption that the company would sell all its crude via auctions.