Bloomberg News

TNK-BP Raises Third-Quarter Profit 57% on Crude Oil Prices

October 25, 2011

(Updates with Ebitda in fourth paragraph, debt in fifth.)

Oct. 25 (Bloomberg) -- TNK-BP International Ltd., BP Plc’s Russian oil venture with a group of billionaires, raised third- quarter profit 57 percent on higher crude prices and output.

Net income rose to $2.27 billion from $1.45 billion a year earlier, TNK-BP said today in a statement distributed to reporters in Moscow.

Russian oil producers benefited from a 48 percent jump the price of Urals crude, the benchmark export blend, from the same period last year. TNK-BP, the country’s third-largest oil producer, increased output 1.6 percent to 1.56 million barrels a day, excluding its stake in its OAO Slavneft venture, according to the statement.

Revenue climbed 34 percent to $15.3 billion, and earnings before interest, taxes, depreciation and amortization increased 40 percent to $3.58 billion.

TNK-BP cut its net debt to $5.08 billion from $5.27 billion at the end of the June. Capital spending climbed to $1.3 billion from $1.1 billion in the year-earlier period.

The venture is in the “final stages” on talks to acquire a stake in Brazilian oil and gas blocks with HRT Participacoes em Petroleo SA, Chief Financial Officer Jonathan Muir said today. The companies may complete a partnership agreement this year, HRT Chief Executive Officer Marcio Mello said yesterday.

OAO TNK-BP Holding, the venture’s traded unit, slumped 1.2 percent today to 80 rubles in Moscow.

--Editors: Torrey Clark, Tony Barrett

To contact the reporter on this story: Anton Doroshev in Moscow at adoroshev@bloomberg.net

To contact the editor responsible for this story: Mark Sweetman at msweetman@bloomberg.net


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