OREANDA-NEWS. June 11, 2010. Bashneft released the headline parameters of its 1Q10 IFRS results. Net income and EBITDA almost tripled YoY on the back of higher oil and refined product prices and the consolidation of refining and marketing subsidiaries as well as Bashkirenergo. Bashneft reported net income of USD 296m for 1Q10 versus USD101m in 1Q09 (+194%), reported the press-centre of OTKRITIE Financial Corporation.

EBITDA increased from USD 208m to USD 613m for the same period. Net revenues of the group increased by 164% YoY, from USD 1.1bn in 1Q09 to USD 2.9bn in 1Q10. Total debt stood at USD 1.7bn at the end of 1Q10. Bashneft management also held an analyst presentation in Moscow at which it reiterated its production volume guidance of 13.4MMt (268MBD) for 2010, which implies annual volume growth of about 10%.

In the next two-three years, the company plans to achieve crude production of 15.1MMt (just over 300MBD). In the meantime, Bashneft will continue to modernize its refineries in Ufa to ensure compliance with new product specifications.  

View: We believe the reported 1Q10 results and the near-term production volume guidance bode well for the stock and for 2010 dividends.