Financial results for the year ended 31 December 2011 and the three month ended March 2012 according to Ukrainian accounting standards

Kiev – Ukrnafta PJSC (UX: UNAF, hereinafter “Ukrnafta” or “the Company”) announces today its financial results for the year ended 31 December 2011 and the three months ended 31 March 2012 according to Ukrainian accounting standards.

Fiscal Year 2011 highlights

Despite the fact that rent tax charged in 2011 reached UAH 8,104 million (up by UAH 3,857 or 91% on the amount of UAH 4,247 million charged in 2010), the company managed to achieve a 2011 gross profit of UAH 3,929 million - a reduction of UAH 902 million or 19% on the amount of UAH 4,831 million, which was booked in 2010.

Sales of oil accounted for 69% of the gross profit of the Company, contributing UAH 2,709 million.

Gas production showed a gross loss of UAH 686 million (the issue of documenting the gas volumes supplied by the Company to the gas transmission system remains unresolved due to the absence of a mechanism to compensate Ukrnafta's losses that would arise from gas sales at the regulated price).

Gross profit from other activities, which include petroleum products sold at filling stations, gas processing products and ammonia, amounted to UAH 1,906 million.

Profit after tax for 2011 was UAH 2,182 million, a reduction of 18% on the result of UAH 2,648 million for 2010.

2012 1st quarter highlights

The results of the Company in the first quarter of 2012 represent a substantial improvement in comparison with the respective period of the previous year. This is explained by both low results achieved in the first quarter of 2011 and also by a less oppressive oil rent tax regime.

Gross profit for the first quarter of 2012 amounted to UAH 1,343 million (Q1 2011: UAH 361 million). Oil rent tax payments deducted in reaching this amount were UAH 1,529 million (Q1 2011: UAH 1,877 million).

Sales of oil contributed UAH 1,209 million to the gross profit (90% of the total). Gross losses from gas production were UAH 208 million. Gross profit from other activities (including petroleum products, gas processing products and ammonia) was UAH 342 million.

Profit after tax for Q1 2012 increased to UAH 827 million from UAH 29 million in Q1 2011.

Full disclosures will be available in due course at Ukrnafta's ESCRIN page (http://eds.ssmsc.gov.ua/00135390.aspx).