TNK-BP Reports a 21% Increase in Net Income in the First Half of 2010 and 11th Consecutive Quarter of Production Growth, TNK-BP
Release Date: 2010-07-27
TNK-BP reports its results for the six months ended June 30th 2010 (US$ millions unless otherwise stated).Commenting on the results, Mikhail Fridman, interim Chief Executive Officer of TNK-BP, said: “During the first six months of 2010, TNK-BP continued the track record of strong operating and financial performance. This is the 11thsuccessive quarter of production growth, supported by continued development of new projects in West and East Siberia, as well as sustained focus on optimizing our brownfield operations. We continued upgrading our refineries and expanding our retail footprint in key growth markets in Russia and Ukraine. Of specific note is the progress made towards unlocking the full potential of Rospan, and laying groundwork for executing a new generation of major projects in Yamal. Finally, our financial performance remains strong despite a challenging cost environment, particularly relating to growing transportation and energy tariffs. This set of results once again confirms the company’s growth potential going forward, and we will continue to build up our organizational capacity required to deliver new major projects that will underpin this growth”.
1H and 2Q 2010 Operational Highlights:
Oil and gas production in 1H 2010 increased by 4.5% to 1.743 million boed compared to 1H 2009 (excluding Slavneft);
Production in 2Q increased by 0.7% on the previous quarter, marking 11 consecutive quarters of production growth;
Production growth was driven by greenfield projects, with a 9.9% production growth on 1H 2009;
Exploration success was again good, with new discoveries in Yamal and Orenburg adding more than 200 million bbl of new resources; in total, 13 new exploration wells were drilled with a 69% success rate.Rospan production in 1H 2010 increased to 1.5 bcm, up 25% on 1H 2009;
The offer by Gazprom of long-term pipeline access for Rospan production, gradually increasing to 13.2 bcma in 2016, will enable the company to proceed with planning and engineering design of full field development of Rospan.Associated petroleum gas utilization increased to 86.1%, compared to 84.5% in 1H 2009;
In Downstream, refining margins were strong at $11.8/bbl, compared to $5.91/bbl in 1H 2009. Operational availability of TNK-BP’s refineries continued to improve, reaching 97% during the first half of 2010. This was achieved along with a successful completion of the Ryazan refinery turnaround;
TNK-BP continued to increase the share of its products sold on the St. Petersburg exchange.The new branded fuel, TNK-Pulsar, was launched in Southern and Central Russia, including Rostov, Krasnodar and Tula;
In 2Q, the weak safety record of the first quarter was reversed, with zero fatalities, zero major vehicle accidents, and the lowest level of injuries recorded since the start of operations.
| Type: | NORMAL |
| Company: | TNK-BP |
| Country: | Russian Federation |