 |
 |
 |
|
 |
|
 |
|
 |
|
 |
|
 |
 |
 |
 |
|
 |
|
 |
 |
|
|
|
||||||||||
|
|||||||||||||||
|
Newsroom / Press Releases Ukrnafta Completes U.S. Road Show KYIV, July 31, 2002 – Ukraine’s near monopoly oil producer Ukrnafta has completed a week-long road show in the United States, making an important step forward to ensure Western investors’ return to Ukraine’s growing stock market, shunned since the 1998 crisis in the region. Ukrnafta’s honorary chairman, Oleg Salmin, and the company’s CFO, Volodymyr Zinevych, presented Ukraine’s largest and most liquid blue chip to the top managers of about 20 investment funds, with assets under their management in emerging markets ranging from US 100 mil. to USD 700 bil. «Interest shown toward Ukrnafta strengthens our determination to make the company more open and transparent. In the future, this, in particular, will enable us to raise cheaper funding in Western capital markets for our expansion projects,” Zinevych said. The meetings in New York and Washington were organized by Dragon Capital, a top Ukrainian investment bank, and the company’s U.S. partner, the New York-based brokerage Auerbach Grayson & Company Inc. The road show, given the number and size of the investment funds involved, became the largest promotion of a Ukrainian company to Western investors and also the most significant visit to advance investment opportunities in Ukraine since 1998. Most of the funds that attended Ukrnafta’s presentations already traded Ukrainian assets, namely Eurobonds, before, which helped facilitate the discussions. “Investors have demonstrated good knowledge of the company and macroeconomic situation in Ukraine. We did not hear any irrelevant questions,” said Dragon Capital’s director, Dmitro Tarabakin. In its most significant outcome, the U.S. visit revealed what Ukrnafta has yet to achieve to prove a definite stock pick to Western investors. Lack of an audit of the company’s financials and of its oil and gas reserves in accordance with Western standards was the main drawback cited. Other issues to be addressed include Ukrnafta’s small free float, unpaid debt by the state oil and gas company Naftogaz Ukrainy, a low amount of cash reserves, and the unresolved dispute between the government and minority shareholders. Responding to those concerns, Ukrnafta managers said the company is committed to openness and transparency, particularly with regard to financial reporting. Also, according to Mr. Salmin, there is progress in talks between the state and minority shareholders, and prospects are good for finally holding an AGM, blocked by the minority shareholder group for nearly a year, this fall. Despite the current weakness in the global markets, in the longer term Ukrnafta’s road show should give a strong boost to the Ukrainian stock market as it is rapidly recouping the post-1998 losses. Ukrainian shares have appreciated in value by nearly 60% since the start of the year, reflecting the country’s strong macroeconomic performance and improved expectations for political stability after parliamentary elections in March. Ukrnafta, by far the largest stock in Ukraine by market capitalization, has risen nearly 50% since the start of the year. With 2001 net sales of USD 504 mil. and net income of USD 182 mil., Ukrnafta is also the largest oil and second largest gas extraction company in Ukraine. Last year Ukrnafta accounted for 93% of total oil production in Ukraine, 40% of gas output, and 18% of natural gas. Although all of Ukrnafta’s output is currently sold domestically, the company is actively seeking exploration contracts in Russia, Turkmenistan, and the Middle East. Ukrnafta’s management hopes the U.S. trip, apart from increasing investor awareness, will make it easier for Ukrnafta to raise financing in international capital markets for its expansion. According to Ukrnafta, its current reserves are sufficient for almost 50 years of production. Dragon Capital was founded in Kyiv in 2000 and has since grown into one of the largest brokerages and M&A advisers in Ukraine. In March Dragon Capital signed a cooperation agreement with Auerbach Grayson, joining its network of 80 broker partners worldwide and becoming the only investment company in Ukraine that can boast access to a wide base of U.S. institutional clients. In July, Dragon Capital was recognized by the Euromoney magazine as the winner in the Best Equity House in Ukraine 2002 Award. |
|
|
||||||||||||
|
|||||||||||||||
|
|||||||||||||||
|
2006 © Dragon Capital | |
Terms and Conditions Contacts Site Map |
|
created by 4-promo | |
|||||||||
