Management of the company took part in 5th Annual Ukraine Investor Conference organized by Dragon Capital and Private Equity Forum organized by Raiffeisen Investement AG on May 28-29 in Kyiv

Corporate finance and IR director Andriy Khudo and IR-specialist Roman Pylypiv have participated in investors conferences along with investment specialists, marketmakers from all over the world and governmental officials from Ukraine discussing current crisis impact on Ukrainian economy and possible ways of its rebound. Speaking at first panel at 5th Annual Ukraine Investor Conference, Deputy Prime Minister of Ukraine Mr. Hryhoriy Nemyrya presumed: “The Ukrainian economy is on the way to recovery, and the government’s efforts to overcome the crisis may serve as a good example for the region.” “Despite all the negative implications for our economy, the global crisis gives Ukraine an opportunity to emerge from it with a reformed economy adapted to the global environment, with improved management practices and modern technologies”. Similar views were shared among other participants, including Mr. Petro Poroshenko from NBU side, representatives of the IMF – Mr. Max Alier and the World Bank – Mr. Martin Raiser, businessman Serhiy Tigipko and vast investment community. At the same time, it worth to be mentioned, that majority from attending in the conference including those mentioned above have assumed that next correction of the markets and economy in the summer or autumn 2009 is still possible. Also, an increasing concern on low level of competitiveness of local economy, weak corporate governance development in Ukraine as well as increased political uncertainty ahead of presidential elections was expressed.

At given venues the management of the company had several one-on-one meetings with a number of Asset Management Funds, Private Equity Funds, Capital Advisors and Wealth Management Funds as well as was involved in discussions during sessions. Among the main messages in relation to company’s operational and financial activity brought to attention of the investors were:

  – Concern Galnaftogaz has seen some minor drop of sales but is able to generate positive cash flows thanks to acceptable margins;
  – Concern Galnaftogaz fulfills all obligations to creditors and follows all appropriate financial ratios arranged in the loan agreements;
  – Concern Galnaftogaz has decreased it’s CAPEX program for 2009 mainly investing in infrastructure maintenance but at the same time might consider acquisitions once market becomes less volatile.

Company’s management has similar views with Mr. Tomas Fiala, Dragon Capital’s Managing Director, who summarized – “However, as far as economic forecasts are concerned, I believe the world economy will start recovering in late 2009 or early 2010, and Ukraine, as a country with an open economy, will quickly react to such growth.”