VTB Bank Granted Credit Limit of 26.8 Billion Rubles to TNK-BP
OREANDA-NEWS. December 30, 2009. VTB Bank granted a credit limit of 26.8 bln rubles to TNK-BP, according to the bank’s statement. Earlier, VTB Bank offered a credit of USD 50 mln to TNK-BP for a period of six months within the established credit limit. The credits were taken for financing the current economic activities of the company. Apart from that, the two parties have signed an agreement on a revolving credit line of USD 200 mln for a period of 1.5 years.
TNK-BP is the third largest oil company of Russia owned, on a parity basis, by BP and the AAR Consortium (consisting of Alfa Group, Access Industries, and Renova). The shareholders of TNK-BP also own about 50% of the Russian oil and gas company Slavneft.
In 2008, the company used to produce an average of 1.65 mln barrels of liquid hydrocarbons a day. With the 50% stake in Slavneft, the average production level of TNK-BP was 1.85 mln barrels of liquid hydrocarbons a day. TNK-BP accounts for approximately 16% of all oil production in Russia (including the stake of TNK-BP in Slavneft). According to the estimation procedure of the US Security and Exchange Commission (SEC), the overall proven reserves of the company as of December 31, 2007, regardless of the license validity period, amounted to 8.225 bln barrels of oil equivalent.
The producing assets of the company are located in Western Siberia, Eastern Siberia, and the Volga-Ural region. TNK-BP owns five oil refineries in Russia and Ukraine and a network of retail sites working under the brands of BP and TNK.
The net income of TNK-BP in January–September 2009, according to US GAAP, decreased by a factor of 1.8 from USD 6.552 bln in the same period last year to USD 3.691 bln, and the revenues dropped from USD 43.9 bln to USD 24.747 bln. The operating expenditures of the company amounted to USD 2.945 bln compared to USD 3.914 bln earlier, and the earnings before interest, tax, depreciation and amortization (EBITDA) reduced by 39% from USD 10.918 bln to USD 6.663 bln.
The open joint-stock company VTB Bank is the second largest Russian bank after Sberbank. The participation of the state in the authorized capital of VTB is 85.5%.
As of September 30, 2009, the sales network of the VTB Group consisted of 949 offices in Russia, the Commonwealth of Independent States (CIS), and Europe, including 476 offices of VTB 24 Bank. The activities of the VTB Group outside Russia are conducted through its five subsidiary banks in the Commonwealth of Independent States (Armenia, Ukraine, Belarus, Azerbaijan, and Kazakhstan), one subsidiary bank in Georgia, five subsidiary banks in European countries (Austria, Germany, France, the United Kingdom, and Cyprus), one subsidiary bank and one financial company in Africa (Angola and Namibia), and one associated bank in Vietnam. The VTB Group has branches in India and China and representative offices of its UK investment banking subsidiary in Singapore and the United Arab Emirates.
The net income of VTB in 2009, according to the International Financial Reporting Standards (IFRS), decreased by a factor of 7.1 down to USD 212 mln. The net loss of VTB in the first 9 months of 2009, according to the IFRS, amounted to 45.5 bln rubles. The net income of VTB in the first 11 months of 2009, according to the Russian Accounting Standards (RAS), amounted to 31.88 bln rubles.
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