OREANDA-NEWS. February 21, 2011. Ukrnafta, the largest oil & gas producer in Ukraine, posted the revenue of UAH 6,362mn (up 1.2% qoq) in 4Q10, the company disclosed in its quarterly report Feb 18. Although the revenue remained at the impressive 3Q10 level, the quarterly EBITDA dropped to UAH 863mn in 4Q10 (down 42% qoq). Moreover, the net income totaled just UAH 193mn in 4Q10 slumping 80% qoq. However, in FY10 EBITDA (UAH 4,514mn) and net income (UAH 2,646mn) have remarkably increased by 3.4x yoy and 7.0x yoy, respectively.

Millennium Capital considers the news as MIXED for UNAF. Persistently high revenues in 3Q10 (UAH 6,286mn) and 4Q10 (UAH 6,362mn) most likely mean it is a permanent thing rather than temporary phenomenon. Meanwhile, the COGS were significantly up this quarter vs flat revenues which looks like a warning sign for us. Among other things, the bottom line (UAH 193mn) was pulled down by the deferred tax expense with effective tax rate at 71% in 4Q10 vs the low of 4% in 2Q10. Simultaneously, adjusted net income was much higher at UAH 508mn but still some 48% down compared to 3Q10 figure.