Net profits for Russo-British joint venture TNK-BP almost doubled in the first quarter of 2011 to $2.4 billion to US GAAP, the company said on Wednesday.
Revenues for the quarter increased 35 percent to $13.821 billion, while oil and gas production grew 2% to reach a record of 1.771 million barrels of oil equivalent per day, the company said in a statement.
"EBITDA increased by 72 percent year-on-year to $3.9 billion, underpinned by a 36 percent rise in the oil price, which was partly offset by excise increases, rising electricity and transportation costs, and rouble appreciation. Net income increased by 91 percent year-on-year to $2.4 billion on the back of stronger EBITDA," Jonathan Muir, Chief Financial Officer of TNK-BP Ltd. was quoted in a statement as saying.
"Such a strong financial performance allowed us to raise organic capital expenditure by 38 percent year-on-year to $0.9 billion with additional investment allocated to producing greenfields - Uvat and Verkhnechonskoye - as well as for our growing operation in Orenburg."
TNK-BP Chief Executive Officer Mikhail Fridman said the shareholder conflict between BP and the AAR consortium, which owns half of TNK-BP, did not affect TNK-BP financial results in the first quarter of 2011. A corporate dispute flared up in April, when AAR blocked Rosneft and BP's intended $16 billion share swap. AAR said BP had violated a TNK shareholder agreement when it signed the Rosneft deal.
"Despite disruptions at the shareholder level, TNK-BP showed exceptionally strong performance in the first quarter of 2011, nearly doubling its net income, increasing output and proceeding to establish a presence in Vietnam and Venezuela," Fridman was quoted as saying in the statement.
MOSCOW, April 27 (RIA Novosti)
