Ukrnafta reports worsened EBITDA, posts net losses in 3Q14

Ukrnafta reports worsened EBITDA, posts net losses in 3Q14



27 жовтня 2014 года
Конкорд Капитал

Укрнафта (UNAF)


Ukraine’s leading oil producer Ukrnafta (UNAF UK) reported a 20% yoy increase in its net revenue to UAH 18.19 bln in 9M14, according to its Oct. 24 filing. Its EBITDA was 7% better yoy at UAH 2.27 bln, while net income was flat yoy at UAH 0.76 bln in 9M14. Crude oil sales slid 17% yoy to 1.17 mmt in 9M14.



These results imply Ukrnafta generated 16% more revenue yoy at UAH 6,152 mln in 3Q14. At the same time, its quarterly COGS increased 31% yoy, causing operating and net profit declines significantly. In particular, the company’s EBITDA fell 94% yoy to UAH 73 mln and it bottom line turned to be negative at UAH 690 mln in the quarter (compared to UAH 249 mln in 3Q13 and UAH 1,002 mln in 2Q14).



Alexander Paraschiy: Given that Ukrnafta provided little additional information on its activity, the core reason for decline in the company’s operating profit remains unclear. Most likely, it’s the result of smaller sales of crude oil, which plunged 37% yoy in 3Q14.



Another possible explanation is the company is trying to minimize its bottom line to pay smaller dividends to the state, which controls a 50%+1 share in the company and is usually dividend-greedy. Recall, Ukrnafta recently has paid 99% of its profit generated in 2011-2013 in dividends. In any case, we expect the company will show a poor bottom line in 4Q14 as well.

Источник: Конкорд Капитал

Аналитик: Александр Паращий
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