Oil and gas

At the EGM that was held on Tuesday, January 26, the shareholders of Ukrnafta [UNAF UZ] decided to pay out 100% of the net revenue earned by the Company in FY2006-2008. The total sum of the dividends should amount to UAH 5 bln.

The gas price for Ukraine in the first quarter of 2010 may reach USD 300-310 per 1000 cbm, according to a statement made yesterday by Gazprom Vice Chairman Vladimir Scherbakov. He also noted that the tariff for gas transport by Ukrainian pipelines for Gazprom will increase from its current USD 1.7 per thsd cbm/km to USD 2.8-3.0 per thsd cbm/100 km. Earlier, Gazprom remarked that Ukraine will have an average gas price of USD 280 per thsd cbm in 2010.

The shareholder meeting of Ukrnafta [UNAF UZ] on November 27, failed due to the fact that the registrar, Ukrnaftogaz, which is affiliated with Privat Group, didn't provide the shareholder registry. More hopes were placed on this particiculare EGM, compared to previous attempts to hold meetings, due to the existence of negotiations between the state and the Privat Group on the issues of the further management of the Company and the state’s willingness to formalize cooperation by signing a memorandum of understanding between UNAF's shareholders.

During the Deutsche Investment Forum last week, the top management of Galnaftogaz [GLNG UZ] spoke about the Company’s plans to make a listing on a western stock exchange. The Company wanted to make the listing in 2008 but it changed its plans due to turmoil of the financial crisis. In their latest statements, GLNG’s management noted that they expect markets to recover and see the possibility of making an IPO in 2010-2011. The Company’s representatives also noted that, unlike the case in 2008, when the Company posted a UAH 300 mln net loss, in 2009, Galnaftogaz is generating earnings and is capable of servicing its debts.

The Fitch international rating agency has upgraded its long-term ratings, in national and foreign currency, for the National Joint-Stock Company Naftogaz from RD (Restricted Default) to CCC. The agency also awarded a ‘B’ rating to the new Naftogaz Eurobonds, which were issued in the volume of USD 1.6 bln.