Galnaftogaz increases net profit 3x y-o-y in 2010 according to unconsolidated accounts

Galnaftogaz (UX: GLNG UK) increased its unconsolidated 2010 net profit by 2.9x y-o-y to UAH 252 mln, the company stated in an announcement for its AGM scheduled for April 28, Interfax reported yesterday. Antonina Davydenko: We attribute the growth in net profit to more than a 50% y-o-y sales boost as well as to improving efficiency in its filling station network (average sales per filling station grew approximately 22%). We estimate steady 15% growth in revenue in 2011 thanks to projected network expansion. However, should the government decide to introduce import tariffs on oil products (frozen at the moment due to instability in global oil markets), this could substantially hurt Galnaftogaz’ margins.