OREANDA-NEWS. On 01 June 2009 TNK-BP reported its results for the three months ended March 31st 2009.

USD  mln

 

 

 

1Q08

1Q09

% change

Urals, average spot price per barrel

93.6

43.7

decrease by 53%

Oil and gas production, mboed

1,605

1,668

increase by 3.9%

Revenues

12,710

6,328

reduction by 50%

Operating expenses

1,146

885

improvement by 23%

EBITDA

2,965

1,489

reduction by 50%

Net Income

1,773

747

reduction by 58%

Operating Cash

2,148

1,181

reduction by 45%

Net debt (end of quarter)

7,408

5,966

improvement by 20%

Organic CAPEX

845

711

reduction by 16%

Major project spending

322

321

stable

Commenting on the results, Tim Summers, Interim CEO of TNK-BP, said:

“This is a strong performance, despite a very challenging environment compared to last year.  Safety performance has continued to improve, production levels are higher, and investment discipline has been maintained, with healthy cash generation.

In the first quarter of 2009, the price for the Russian Urals export blend fell by 53% to USD 43.7 per barrel relative to the same period last year, with revenues falling by 50% to USD 6.328 billion.

We remain committed to a safer and cleaner environment for our employees, contractors and the communities in which we operate. In the first quarter of 2009, lost time injuries dropped by more than 50% while the number of high potential incidents reduced by 40% compared to the same period last year.  We also increased the use of associated gas by 25%.

Production for the first quarter showed an increase of 3.9% relative to the same period last year, and included the start-up of new Uvat fields in February and increased output from the Verkhnechonskoye and Kamennoye green-fields in East and West Siberia.  We have maintained our focus on the continuous development of our existing asset base, as well as investing for the longer term.  In the first quarter of 2009, the exploration drilling success rate was 74%, in line with the last year levels.

Organic capital expenditure was USD 711 million, 16% down on the same period last year. Operating expenses were USD 885 million, a 23% improvement from 1Q 2008.

TNK-BP is committed to increased transparency and regular quarterly reporting of our financial results is another positive step in that direction.” 

First quarter highlights

Lost time injuries fell by over 50% and the number of high potential incidents decreased by 40% as compared to the first quarter 2008.

The volume of associated petroleum gas utilization increased by 25% as compared to the first quarter 2008. 

Oil and gas production was 1.668 million barrels per day, up 3.9% from the first quarter of 2008.

TNK-BP launched commercial production from the Urnenskoye and Ust-Tegusskoye fields in Uvat.

The new oil field, Yuzhno-Gavrikovskoye, was discovered in the northern part of East Uvat.

Thanks to continuous technological improvements, the Ryazan refinery in Central Russia has produced over 40% of gasoline to Euro-4 fuel standards and over 40% of diesel to Euro-5 fuel standards.

 TNK-BP and the energy utility OGK-1 signed an agreement with the Siemens-Enka consortium to complete the engineering of the initial phase of the project to construct the third power unit of the Nizhnevartovsk state district power plant.