OJSC Concern Galnaftogaz performance in 1 quarter of 2009

Revenue (according to international financial reporting standards (IFRS) accounted for UAH 1 014,6 mln, including retail sales of oil products which equaled to UAH 827,6 mln. In comparison with the first quarter of 2008, when weather conditions (mild winter) and macroeconomic conditions were more favorable, during 1 quarter of 2009 the company generated slightly less revenue – 11,7% drop.

«A slight contraction in oil products sales during 1 quarter of 2009 as opposed to similar period of 2008 were compensated by better EBITDA and net income indicators – admits director of financial department of Concern Glanaftogaz Nazar Kupybida. – Efficient inventories management, implementations of measures aimed at costs optimization and satisfactory profitability enabled to increase ЕBITDA indicator by 2,2 times to UAH 154,6 mln, while ЕBITDA margin equaled to 15,2%. Operational income (ЕBIT) grew by 2,2 times and equaled to UAH 126,8 mln and net income increased by 2,3 times to UAH 63,5 mln.

Consequently, positive cash flow from operational activity comprised UAH 173,2 mln, which was used by Concern Galnaftogaz to repay some of its debt liabilities (negative balance on net cash provided by financing activities equaled to UAH 87,3 mln.) as well as for investment needs (negative balance on net cash used in investing activities comprised UAH 81,8 mln).

The most vital financial ratios also improved as a consequence of the stable situation in the company during the 1st quarter of 2009. For instance, Current Ratio was equal to 1.2 and Financial Debt to EBITDA was equal to 4.3, which complies with both requirements of loan agreements and plans and anticipations of the company».