Alliance Oil posts 1Q 2011 net profit of $90 million

Swedish listed Russian oil producer, Alliance Oil, has posted a 1Q 2011 net profit of $90 million under IFRS.

The bottom line is up from the $45.5 million net profit posted for 1Q 2009, with 1Q EBITDA up from $107.7 million to $156.3 million, as 1Q revenues rose to $678.7 million from $501.05 in 2009.Arsen Idrisov, Managing Director said the growth in the segment was driven by rising oil prices and increased demand. “During the first quarter, the overall macro environment remained supportive for our activities. The price of crude continued to increase with Brent trading up to levels above USD 115 per barrel. Demand for oil products was strong, oil product prices increased, although at a slower rate than crude oil prices.” Idrisov added that the company is continuing to focus on development and exploration to contribute to sustainable profit growth going forward, with the modernization of its key Khabarovsk refinery on schedule.“Alliance Oil Company produced 4.1 million barrels and refined 6.1 million barrels of oil. In the first quarter of 2011, 14 new wells were drilled, including 6 wells at the Kolvinskoye oil field. Infrastructure development progressed towards the completion of the pipeline to Kharyaga terminal and facilities at the Kolvinskoye oil field in the third quarter 2011.In the downstream segment, higher sales volumes and higher prices for oil products contributed to the revenue growth of 20% and stable EBITDA compared to the fourth quarter of 2010. The modernization of the Khabarovsk oil refinery remained on track for completion in 2012.  With properly balanced and integrated operations, the Company is well positioned to confirm the implementation of its key strategic projects. We reiterate our plans in exploration and production drilling activity.”