Ukrnafta profit halved despite 40% growth in revenue in 9M13

Ukraine’s leading oil producer Ukrnafta (UNAF UK) reported a 40% yoy increase in its top line to UAH 15.2 bln in 9M13. At the same time, the company reported it decreased oil production 2% yoy to 1.41 mmt over the period and its gross sales of crude oil fell 1% yoy to UAH 9.93 bln. It also decreased gross sales of oil products 23% yoy to UAH 6.44 bln.

While Ukrnafta’s gross profit surged 2.3x yoy to UAH 6.83 bln, its enormous “other operating losses” (UAH 5.4 bln vs. UAH 0.2 bln in 9M12) caused a 39% yoy decline in EBITDA to UAH 2.13 bln in 9M13. The company’s net income decreased 49% yoy to UAH 764 mln in 9M13.