Gas output at listed Ukraine E&Ps falls 8%-21% in 5M15

Gas output at listed Ukraine E&Ps falls 8%-21% in 5M15



3 липня 2015 года
Конкорд Капитал

Natural gas production in Ukraine fell 0.9% yoy to 8.11 bcm in 5M15, according to preliminary data reported by the Energobiznes news site. Private producers were the key output drivers as they boosted gas production 15.8% yoy to 1.37 bcm, including a 58% yoy surge by NGD, a subsidiary of DTEK (DTEKUA).

Gas production at JKX Oil & Gas (JKX LN) dropped 21% yoy to 83.86 mcm (or 2,710 boepd) in 5M15. Production at KUB-Gaz, a subsidiary of Serinus Energy (SEN PW), declined 20% yoy to 100.3 mcm (2,270 boepd, net to Serinus working interest).

Gas production at Regal Petroleum (RPT LN) decreased 8% yoy to 22.6 mcm (780 boepd) in 5M15. In separate news, Regal reported its 1H15 production at 1,291 boepd of hydrocarbons in the period (-7% yoy).

Alexander Paraschiy: The poor production results of internationally listed E&P companies is of little surprise, given the tough tax environment. Recall, the tax rate for gas producers increased to 55% (and 28% for wells deeper than 5 km) as of August 2014 from 25% (14%) before March 2014. Ukrainian authorities committed themselves to approving better tax legislation by end-1H15, though they have yet to do it. We expect a breakthrough in the next two weeks and the companies will be able to intensify their E&P activity to show some increase in gas output by mid-2016.

Источник: Конкорд Капитал

Аналитик: Александр Паращий
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