TNK-BP posts 1H 2009 Net Income of $2 billion

Russian oil producer TNK-BP has posted a 1H 2009 net income of $2 billion under U.S. GAAP.

The bottom line is down from the $4.6 billion Net Income posted for 1H 2008, with EBITDA falling 47% year on year to $3.8 billion, on the back of Revenues of $14.4 billion, down from 1H 2008 Revenues of $28.2 billion.

The 1H results befitted from an upturn in crude prices, from the lows to which they had slumped in January, which saw TNK-BP post a 2Q Net Income of $747 million, down from $1.2 billion for 2Q 2008, but up 68% quarter on quarter. 2Q EBITDA came in at $1.4 billion, down from $2.3 billion for 2Q 2008, but up 58% quarter on quarter, on the back of Revenues of $6.3 billion, down from $8.1 billion for 2Q 2008, but up 29% quarter on quarter.

Interim CEO, Mikhail Freedman, attributed the results to increased production and reductions in the company’s cost base, as the energy markets regained strength.

“In the second quarter of 2009, TNK-BP benefited from stronger oil and gas markets with a continuation of the strong performance of the first quarter. In addition, in the first half of this year we generated 3.1% growth in our oil and gas production relative to the first half of 2008, due to first oil from greenfield projects in Verkhnechonskoye, Uvat and Kamennoye. We have also been able to reduce our cost base this year and these factors have contributed to a strong set of financial results for the first half of 2009. We are also pleased to have been able to continue to improve our safety and environmental performance with a cleaner and safer performance year on year. We have managed our cash and debt positions prudently and TNK-BP is well placed for sustained future growth through efficient production operations and focused capital investments.”