TNK-BP reports fall in third quarter net earnings

26th October 2010, Comments 0 comments

BP's Russian joint venture TNK-BP on Tuesday reported a 14 percent fall in third quarter net earnings but said profit rose over the first nine months thanks to increased oil and gas production.

The company, Russia's third largest oil producer, said net income in the July-September quarter fell to 1.45 billion dollars (1.04 billion euros) from 1.68 billion in the same period last year.

But from January to September net earnings rose 5.0 percent to 3.88 billion dollars, the group said, adding that future growth would be boosted by overseas asset purchases.

Sales in the first nine months grew by 30 percent to 32.14 billion dollars, TNK-BP said in a press-release.

"Our financial results benefited from a rising greenfield contribution and incremental production in the Orenburg region (in the south) as well as higher downstream margins," chief financial officer Jonathan Muir said in the statement.

Greenfield production is that which takes place on new territory.

Oil and gas output rose by 3.4 percent in the first nine months.

"Strong results of our business in Russia, combined with our recently announced agreements to acquire assets in Venezuela and Vietnam, provide TNK-BP with a solid platform for further growth and profitability," said chairman Mikhail Fridman.

Created in 2003, TNK-BP now represents a quarter of BP's global oil production.

TNK-BP announced on October 18 that it had agreed to acquire BP's assets in Vietnam and Venezuela for 1.8 billion dollars.

BP previously indicated that it was willing to sell 30 billion dollars worth of assets, or about 10 percent of its total assets to finance a fund for victims of the Gulf of Mexico spill after the company's platform Deepwater Horizon exploded.

© 2010 AFP

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