Oil and gas

Oil and gas
July 13, 2010Ukrnafta – hefty upside from new oil pricing

In 2010, Ukrnafta will finally bring its oil prices in line with the global benchmark oil prices, a drastic change from the 50% average discount last year. This should offset an increase in the company’s royalties and add an additional USD 0.3 bln to Ukrnafta’s gross revenues in 2010, while its net sales should grow by 12% to USD 1.4 bln. Due to improved pricing, Ukrnafta’s net profit should increase by a considerable amount, USD 162 mln, which implies that its net margin will go from 4% in ’09 to 15% this year. Our valuation shows an aggregate 90% upside to the company’s current share value of USD 31.2. We upgrade Ukrnafta to BUY with the target price of USD 59.1 per share.

Oil and gas
November 12, 2008Ukrnafta: after a halt, refueling begins

A revision of Ukrnafta’s prospects incorporates sharply lower expectations, but nevertheless renders the stock underpriced.

Oil and gas
July 14, 2008Ukrnafta: mental vs. fundamental

Ukrnafta did not pay dividends in early summer 2007, contrary to expectations, and is in the midst of a shareholder conflict, upsetting investors. The stock behaved as a PFTS index dummy for most of 2008 (see right), ignoring roaring oil prices and Ukrnafta’s own profits. The 2Q08 results will remind investors once again that these are fundamentally good times for the business.

Oil and gas
March 26, 2008Ukrnafta: bottom of compression cycle

The corporate conflict at Ukrnafta led to unreasonable compression of investors’ expectations. An ignition may be close in time.

Oil and gas
February 1, 2008Galnaftogaz: filling up for the long run, ready to cut the corner

One of the best companies in terms of corporate governance, Concern Galnaftogaz may be able to deliver value to shareholders using a long and windy road of self-sustained development and expansion. However, ample opportunities for corporate maneuvers may present much speedier and certain ways of deliverance.

Oil and gas
September 1, 2010September’s gas price for industrial users left unchanged

Yesterday national energy regulator, NERC, left natural gas price for industrial users in September at the August level of UAH 2,187 per thsd cm (USD 277 per thsd cm).

Oil and gas
August 21, 2010Ukrnafta’s Oil and Gas Condensate Output Down 13% y/y in July 2010

The Ministry of Fuel and Energy reported that Ukrnafta’s oil and gas condensate output was down 13% y/y in July, while in monthly terms its output grew by 2%. On a broader scale, Ukrnafta performed worse than the sector, which decreased its oil and gas condensate production by 11% y/y in July 2010.

Oil and gas
August 17, 2010Ukrnafta’s Oil and Gas Condensate Output Down 13% y/y in July 2010

The Ministry of Fuel and Energy reported that Ukrnafta’s oil and gas condensate output was down 13% y/y in July, while in monthly terms its output grew by 2%. On a broader scale, Ukrnafta performed worse than the sector, which decreased its oil and gas condensate production by 11% y/y in July 2010.

Oil and gas
August 10, 2010Ukraine will raise gas prices for its population by 50% in April 2010

In a memorandum to the International Monetary Fund, Ukraine has indicated plans for a gradual increase in gas prices for its population in order to bring consumer prices to parity with import prices. Another 50% increase in gas and utilities prices for the population is scheduled for April 2011.

Oil and gas
July 29, 2010Ukrnafta’s 1H2010 net sales jumps 88% y/y, net profit is a massive USD 193 mln

Ukrnafta reported its 1H2010 net sales of USD 931 mln (up 88% yoy), net profit of USD 193 mln, which greatly exceeds FY2009 results.

			Δ, day	Δ, %
PFTS	(16:56)	806,98	0,67	0,08%
UX	(17:29)	2 008,26	0,71	0,04%

		Δ, day	Δ, %
USD	789,78	1,17	0,15%
EUR	1 012,34	2,92	0,29%
RUB	2,57	0,01	0,52%

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