Ukrnafta announces its financial results for the half year ending 30 June 2011

Kyiv – Ukrnafta PJSC (“Ukrnafta” or the “Company”, UX: UNAF), Ukraine’s leading oil & gas producer and fuel retail company, today announces its results according to UAS for the half year ending 30 June 2011.

Profit before tax for the second quarter was UAH 763 million, increasing from UAH 29 million reported at the end of the first quarter, to give UAH 792 million for the half year. This increased profit was achieved on the revenue of UAH 8,731 million for the second quarter, UAH 16,956 million for the half year (after VAT but before rent and excise).

UAH 396 million of the increased result derived from increased average selling price of oil, while the oil sales volume grew insignificantly. Volumes sold in the second quarter increased by 1% on the first quarter, from 507,641 tonnes to 513,870 tonnes, while the average selling price grew by about 26%. The other main contributor to the improved result was sales achieved from further processing of gas into ammonium, an activity which commenced in the second quarter, and contributed UAH 205 million to the result.

As in the first quarter, there was no income in the second quarter from gas as the negotiations relating to gas sales to Naftogaz are ongoing. Since rent tax is payable on such gas, the activity shows a loss of UAH 373 million for the half year.