1 Mar 2010 14:54

TNK-BP's GAAP net profit down 5.7% in 2009

MOSCOW. March 1 (Interfax) - TNK-BP International Ltd.'s US GAAP net profit in 2009 came to $5 billion, the company's chief operating officer, Bill Schrader, told journalists.

In 2008, this figure came to $5.3 billion. Therefore, TNK-BP's net profit fell by 5.7% in 2009.

Schrader said earnings before taxes, depreciation and amortization (EBITDA) fell 10.9% to $9 billion in 2009, from $10 billion in 2008.

Jonathan Muir, the chief financial officer, said organic capex totaled $3.1 billion in 2009 and $4.7 billion in 2008.

He said sales revenue fell 32.7% to $35 billion in 2009, from $52 billion in 2008.

TNK-BP's net profit in the fourth quarter of 2009 came to $1.282 billion, slipping from $1.684 billion in the third quarter. The company's sales revenue in the fourth quarter came to $10 billion (down from $10.26 billion), EBITDA- $2.344 billion ($2.819 billion) and net debt - $5.967 billion ($5.133 billion), TNK-BP said in a presentation.

The company's sales revenue in 2009 decreased by 33% owing to a 36% drop in prices for Urals blend oil, which was partially compensated by 2.9% increase in output. Operational, transport, commercial and administrative expenditures dropped by 17% following the introduction of cost-cutting measures and the weakening rate of the Russian ruble.

In 2009, EBITDA dropped by 11% largely owing to decreasing sales revenues, taxes and expenditures. This figure was partially compensated by revenue generated from the sale of TNK-BP's oil servicing business.

Net profit decreased by 6% owing to a reduction in EBITDA and the positive effect from a drop in profit taxes.

The company's net debt in 2009 shrank by $400 million, which reduced the capital to debt ratio to 28%.

In 2009, TNK-BP's total gas and oil output increased by 2.9% (excluding the company's stake in Slavneft) largely owing to rising production at new fields such as Uvat, Verkhnechonsk and Kamennoye, as well as increasing output in the Orenburg region.

Russian consortium Alfa Group/Access/Renova (AAP) and Britain's BP own TNK-BP Limited on a parity basis, which, in turns, owns 100% in TNK-BP International. This company owns 95% in TNK-BP Holding, 49.5% of the shares in Slavneft, 63% in OJSC RUSIA Petroleum , 100% of shares in ST-B-B Holding Ltd, 50% in East Siberian Gas Company, Ukraine's CJSC Linik and 100% in TNK-BP Commerce (Ukraine).