TNK-BP posts FY 2009 Net Income of $4.97 billion

Russian-British oil producer, TNK-BP, has posted a FY 2009 Net Income of $4.97 billion under US GAAP.

The FY bottom line was down 6% on the 2008 Net Profit of $5.28 billion, with EBITDA falling 10.9% year on year to $9 billion, as Revenues fell 33% year on year to $34.75 billion.

For 4Q 2009 TNK-BP posted a Net Income of $1.28 billion, down 24% quarter on quarter, with 4Q 2009 EBITDA falling 17% quarter on quarter to $2.34 billion, as Revenues fell 2.5% quarter on quarter.

TNK-BP, Chief Financial Officer, was upbeat about the results, noting the weaker crude and oil product prices prevailing throughout the year.

“This is a good set of results. In 2009, we operated in a weaker trading environment with the Urals export price 36% lower than in the previous year and oil product prices similarly down between 25% and 48%. However, our net income of $5bln was only 6% down year on year, allowing us to increase organic spend and renew our quest for inorganic growth opportunities. This net income performance was due to a combination of our focus on operational efficiency, including cost management and financial discipline, but also the weaker rouble and the stimulus effect of tax incentives introduced by the Russian Government.”

Mikhail Fridman, interim Chief Executive Officer of TNK-BP added that despite a volatile market the company had maintained its growth strategy, pointing to increased production, and expressing confidence about the outlook.

“In production, we achieved 2.9% growth which for the first time was supported by a material contribution from our two new production centres in the Verkhnechonsk area in East Siberia and the Uvat district in the south of the Tyumen region. In addition, we demonstrated that, with the right technology, brownfield areas can continue to shine, as the company’s oil fields in the mature Orenburg region increased production by more than 6% in 2009 and we are confident will deliver further growth in 2010.”