Ukrnafta’s output continues to fall through 9M11

Ukrnafta (UX: UNAF UK, SELL) decreased its oil output by 5.6% y-o-y to 1.57 mln mt and gas by 13.4% y-o-y to 1.61 bln cubic meters in 9M11, Interfax reported yesterday. Gas condensate production fell by 35.5% y-o-y to 139.8 ths mt. Antonina Davydenko: Ukrnafta’s production results are in line with 8M11 figures (oil down 4.8% y-o-y, gas down 13.6% 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.