Ukrnafta’s output continues to fall through 8M11

Ukrnafta (UX: UNAF UK, SELL) decreased oil output by 4.8% y-o-y and gas by 13.6% y-o-y in 8M11, Interfax reported last week. 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 at least yearend.