TNK-BP saw Q1 2012 net profit fall 16.9 percent year-on-year to $2.176 billion to IFRS, the company said in a Thursday statement.
The Russian-British oil producer is presenting IFRS financial results for the first time after previously using US GAAP. They showed that while Q1 2012 Gross Proceeds rose 16.4 percent to $16.089 billion from Q1 2011, driven by a 14% higher Urals crude price and increased production, Q1 EBITDA fell 9 percent year-on-year to $3.605 billion. That saw Q1 2011 Net Profit fall 17 percent from a year earlier.
Chief Financial Officer Jonathan Muir, noted the EBITDA slide reflected one off outlays related to greenfield production, and in a statement said the Q1 2012 result demonstrated a strong performance in a mixed environment of strong prices offset by rising fixed costs and regulatory pressure.
“TNK-BP’s EBITDA adjusted for one-offs amounted to USD 3.9 bln, which is 1% higher year-on-year. The company has also once again confirmed its ability to generate healthy free cash flow, which increased by 48% year-on-year to USD 1.9 bln.”
Overall oil and gas production in Q1 2012 amounted to 2.037 million barrels of oil equivalent a day, up four percent growth on the same period 2011. Executive Chairman, Mikhail Fridman highlighted the production contribution from new Russian fields and TNK-BP’s international assets.
“In the first quarter of 2012, TNK-BP achieved continued success in its focus on delivering operational excellence and sustainable growth. We increased production by 4% year-on-year to 2.037 million barrels of oil equivalent per day thanks to highly effective greenfield operations in Uvat and Verkhnechonskoye as well as contributions from our international assets. We proved our ability to operate in new areas, with successful completion of our first offshore well in Vietnam, and completed the acquisition of a participating interest in exploration and development blocks in the Solimoes basin in Brazil.”