Ukrnafta (UNAF: SELL) posted USD 1.29 bln net sales in 9M06, 52% yoy higher than in 9M05. Its net income increased 37% yoy, to USD 374 mln. Vladimir Nesterenko: UNAF’s 9M06 performance is generally in line with our expectations. We projected 2006 net sales at USD 1.7 bln and net income of USD 431 mln. The company’s 9M06 net margin of 29% still exceeds our 2006 forecast (25%), but the recent downturn in crude oil and oil products prices is likely to bring UNAF’s net profitability closer to our forecast. We maintain our SELL recommendation for the stock. Watch: For the results from the company’s November 17 EGM, which may lead to a reshuffle of UNAF’s management.