Ukrnafta decreases oil output by 4.1% y-o-y, gas by 13.7% y-o-y in 7M11

Ukrnafta (UX: UNAF UK) decreased oil output by 4.1% y-o-y to 1.3 mln mt in 7M11; production of gas condensate was down 39% y-o-y to 105 ths mt, and gas down 3.7% to 1.3 bln m3. Antonina Davydenko: Ukrnafta’s production results are in line with 1H11 output (oil down 4% y-o-y, gas down 14% y-o-y). There has still been no clear action taken to reverse the company’s declining production and we expect this negative trend to continue until yearend.