Galnaftogaz has conducted a scheduled conference call with investment community on 1H 2009 results

The company has conducted a scheduled conference call with vast investment community summarizing 1H2009 financial and operational results. From Galnaftogaz’ side participated: Andriy Khudo – director of corporate finance and IR department and Nazar Kupybida – Head of the Management Board.
The main messages brought to attention were:

– Physical sales through retail FS network in 2Q 2009 showed positive dynamics in comparison with theanalogous period of 2008 and in comparison with the 1Q of 2009;

– Despite of the crisis impact and slight decline of total revenue, the company achieved sound profitability ratios in the reported period;

– Retail oil products prices closely correlated with Platts prices in 1H 2009. Also, for the first time, in the reported period the company imported almost 100% of oil products considering their high quality;

– During 2Q 2009, as well as during 1Q 2009, the company suffered price competition on the retail oil products market mainly from it’s main player;

– Cash flows generated as a result of operating activities in 1H 2009 and 1Q 2009 in particular wereaimed at increasing of the company’s liquidity as well as atmaintenance CAPEX and CAPEX in relation to those projects which were started to be constructed earlier on;

– Major part of the company’s debt is LIBOR linked which is favorable for Galnaftogaz due to its low indications and also help to compensate high interest payments because of local currency devaluation;

– At this point of time, the company is at the stage of lacking agreements signing as regards EBRD deal with intention to receive proceeds on it’s account in the course of the next two months.