Alliance Oil more than halves Q3 IFRS earnings, better than forecast
MOSCOW. Nov 26 (Interfax) - Alliance Oil Company (former West Siberian Resources) saw its net profit to International Financial Reporting Standards (IFRS) plummet 54.5% year-on-year in the third quarter of 2009 to $59.6 million, the company said in an earnings report.
Analysts said in a consensus forecast for Interfax that they thought net profit would be $58 million.
Alliance said Q3 sales revenue fell 44.4% year-on-year to $489.9 million, and that EBITDA halved to $112.3 million. The analysts forecast revenue of $462 million and EBITDA - $104 million.
Net profit more than halved to $156.7 million in January-September (analysts said $155 million).
Oil sales in Q3 2009 fell 13% year-on-year to 2.486 million barrels. Oil sales in the domestic market fell 32% to 547,972 tonnes, and revenue from oil sales decreased to $89.28 million at an averaged realized sale price of $35.91 a barrel. Lifting costs fell 42% to $60.3 million.
Petroleum product sales fell 14% year-on-year in Q3 to 5.868 million barrels. Exports fell 19% to 1.885 million barrels, domestic wholesale - 8% to 3.087 million barrels and retail - 20% to 895,000 barrels. Revenue from petroleum product sales fell 47% to $391.42 million.
Investment in upstream assets shrank 80% year-on-year in Q3 to $11.44 million, most of it in the Timan-Pechora province. Overall downstream investment also fell 80%, to $23 million, although investment in marketing sales soared 270% to $10.75 million. The company closed the acquisition of a sales network in the Amur region, capable of selling 20,000 tonnes of gasoline and diesel per year and pushing Alliance Oil's share of the local market up 30%.
Net debt rose to $418 million at end Q3, from $400 million at end Q2. The company said 35% of the debt was denominated in rubles and 65% in dollars.
Alliance Oil Company Ltd is an independent oil company with vertically integrated operations in Russia and Kazakhstan. Alliance Oil has proved and probable oil reserves of 487 million barrels, oil production of approximately 43,300 barrels per day, refining capacity of 70,000 barrels per day and a network of gas stations and wholesale oil products terminals. Alliance Oil's depository receipts are traded on the NASDAQ OMX Nordic.
Alliance Oil was formed in 2008 through a merger between Alliance Oil (Russia) and West Siberian Resources, is owned by the Alliance Group (Russia, 53.7%), SIX SIS AG - 5.1% and Repsol - 3.4%.