Ukrnafta boosts EBITDA 2.3 x yoy in 1H13

Ukrnafta boosts EBITDA 2.3 x yoy in 1H13



28 липня 2014 года
Конкорд Капитал

Укрнафта (UNAF)


Ukraine’s leading oil producer and gasoline retailer Ukrnafta (UNAF UK) boosted its revenue 22% yoy to UAH 12.0 bln in 1H14, according to a July 25 release. The company’s EBITDA jumped 133% yoy to UAH 2.20 bln, while its bottom line increased 182% yoy to UAH 1.45 bln. In 2Q14 alone, the company’s revenue grew 34% yoy, EBITDA improved 3.5x yoy and its bottom line advanced 5.6x yoy to UAH 1.00 bln.



Alexander Paraschiy: The company’s strong result for the quarter is mainly explained by the appreciation of U.S. dollar versus the hryvnia, as most of its product prices are linked to dollars, while hydrocarbons production costs are mainly sensitive to the local currency. The core risk for the coming quarters is the government’s initiative to increase royalty taxes for oil extraction, which might significantly cut the profit of Ukrnafta’s upstream business.



Thus far, however, the Ukrainian parliament has failed to vote for this initiative. We also expect that Ukrnafta management will seek to decrease the company’s reported bottom line in the coming quarters to minimize its annual profit (which is the basis for compulsory dividends payments of at least 30%), just as it did in 4Q13.



We expect that UNAF’s performance in the coming days will mostly depend on the market’s vision on the probability of Ukrnafta’s dividend payments from its profit from 2011-2013. Naftogaz’s CEO predicted last week that Ukrnafta may pay dividends of up to UAH 1.3 bln on the state’s 50% stake in the company, which, if comes it true, would imply a DPS of UAH 48, to yield about 16%. Thus far, there is no information on when Ukrnafta’s next AGM might occur, which might vote for a dividend distribution.

Источник: Конкорд Капитал

Аналитик: Александр Паращий
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