TNK-BP Revenue Going Up Faster than Oil Prices
OREANDA-NEWS. October 30, 2009. Q3 proved to be successful for TNK-BP: the company’s revenue and profits were going up faster than oil prices.
ТNK-BP International was the first Russian oil company to publish the results for 2009 Q3 (the full version of the US GAAP-formatted report will be presented in November). The company’s revenue increased by almost 26% to reach Q2 levels or US10.3 bln, EBITDA — by 19.7% reaching US 2.8 bln and net profit — by 33.7% totaling US 1.7 bln.
TNK-BP’s growth dynamics surpassed not only that of oil prices (Urals went up 17%), but also its co-owner BP. The latter’s revenue in Q3 grew by 20% compared to Q2, EBITDA — by 6.9%, profit — by 21.7%. TNK-BP benefited from increased production (totaling 1.3%, while BP’s production fell by 2.2%) and revenues generated by refining activities (US 9 for 1 barrel of refined oil in Q3 compared to US 4 in April-June), as stated in the TNK-BP presentation. Furthermore, TNK-BP registered US 204 mln paper profit in Q3 generated from the sales of oil service assets (traded for shares of the Swiss Weatherford).
TNK-BP’s EBITDA profit margin appeared slightly lower than in Q2 — 27.5% against 28.9% — primarily due to the increase in taxes in sync with the growing oil prices. Expenses associated with export duties increased by 52% during this quarter and MET — by 42%. However, TNK-BP’s profit margin for the last nine months surpassed that for the previous year— 26.9% against 24.9%. The company’s revenue and profits in January — September dropped by 44% and EBITDA — by 39% due to an almost 48% drop in oil prices in 2008.
TNK-BP’s costs also grew at a faster pace than was the case with its co-owner: its operating expenses in Q3 increased by 19%, and capital investments excluding acquisitions – by as much as 49.5% reaching US 831 mln (BP’s figures were minus 1.1% and 2% respectively). Yet the company reports that in general, costs incurred by TNK-BP during the last nine months remain at the level of 2007, and the actual savings achieved since the beginning of the year totaled about US 500 mln. However, capital investments for the same period fell by 41% to US 2.1 bln. Throughout the year the company invested US 3 bln in total against US 3.9 bln in 2008.
Source: Vedomosti
Комментарии