OREANDA-NEWS. May 06, 2010. TNK-BP Holding released its detailed US GAAP results for 2009. The company reported net income of USD5.17bn for 2009 (-19% YoY), EBITDA of USD 7.99bn (-16%) on net revenues of USD 31.17bn (-31%). Consolidated net debt of the company (after accounting for LT loans to related parties) increased from USD 0.76bn as of 31/12/08 to USD 1.01bn as of 31/12/09, reported the press-centre of OTKRITIE Financial Corporation.

View: In our opinion, the reported results brought no surprises for the market, as TNK-BP International (its parent company) had already released its 2009 US GAAP financials at the end of February, and they were not too much different in terms of the YoY EBITDA and earnings dynamics.

That said, it should be noted that TNK-BP Holding generated stronger 2009 US GAAP earnings than its parent (USD 5.17bn versus USD 4.97bn), despite a more substantial YoY earnings drop (-16% against -6% for the parent). We attribute this mainly to TNK-BP Holding’s higher profitability and its lower leverage (lower interest expense). We do not believe the reported 2009 TNK-BP Holding results will generate any visible impact on the traded stock, especially amid the current stock market turbulence. 

Recommendation: On our estimates, TNK-BP Holding trades at just 5.6x its 2010E earnings. We maintain our BUY rating on TNK-BP Holding and our target price of USD 2.52 per share.