28 Jul 2009 13:14

TNK-BP net profit falls over 50% to $2 bln in H1

MOSCOW. July 28 (Interfax) - TNK-BP posted a net profit of $2 billion in the first half of 2009 under US GAAP, down more than 50% from the same period last year, the company said in a statement.

Revenue in the first half fell about 47% to $14.487 billion and EBITDA was also down 47% to $3.844 billion.

Operating expenses declined 25% to $1.827 billion, operating cash was down 47% to $2.858 billion, net debt fell 11.8% to $5.799 billion and organic capital expenditure was down about 45% to $1.267 billion.

The average spot price of oil in the first half of 2009 was less than half the level of the same period last year: $50.9 per barrel compared with $105.6 a year earlier. Meanwhile the ruble exchange rate rose from 24 rubles/$1 in the first half of 2008 to 33.1 rubles/$1 in the first half of 2009.

TNK-BP was able to boost production in the period 3% year-on-year to 1.668 million barrels of oil equivalent a day. It began commercial production at the northern portion of the Kammenoye field in Western Siberia in May. In addition, associated gas utilization was 9% higher than in the first half last year, the statement says.

"In the second quarter of 2009, TNK-BP benefited from stronger oil and gas markets with a continuation of the strong performance of the first quarter. In addition, in the first half of this year we generated 3.1% growth in our oil and gas production relative to the first half of 2008, due to first oil from greenfield projects in Verkhnechonskoye, Uvat and Kamennoye," interim CEO Mikhail Fridman is quoted in the statement as saying.

Second quarter earnings amounted to $1.26 billion, 68.6% more than in the first quarter. Revenue was up 28.9% quarter-on-quarter to $8.159 billion and EBITDA rose 58% to $2.355 billion. Operating expenses increased 6.4% to $942 million and operating cash increased 42% to $1.677 billion. Net debt fell 21.8% to $556 million.

The average spot price for a barrel of Urals crude rose to $58.1 in the second quarter, up from $43.6 in the first quarter. The average value of the dollar fell to 32.2 rubles in the second quarter compared with 33.9 rubles in the first quarter.