Moscow, October 4, 2005. Sibneft net income soared 44% in the first half of 2005 to $1.42 billion from $988 million in the same period of 2004, according to consolidated US GAAP financial results released today.The company gained full benefit from higher international and domestic prices for oil and oil products, despite rising utility costs, transport expenses, taxes and export duties.
“Our financial results once again confirm that Sibneft is among the most efficient companies in Russia,” said Sibneft president Eugene Shvidler. “Our strong management team, professional employees and quality assets allow Sibneft to lead the industry in its ability to gain full benefit from each barrel of oil we produce.”
Sibneft’s total revenues rose 43% to $5.73 billion in the first half of 2005 from $4.01 billion last year. Earnings before taxes, interest, depreciation and amortization (EBITDA) were $1.94 billion for the six months, up 29% from $1.50 billion in 1H 2004.
As of June 30, 2005, the Sibneft group had debts totaling $1.50 billion.
Sibneft’s strong financial performance came as the company produced 16.62 million tons (687,000 barrels per day) of oil from January through June, the same volume as in 2004. The company acquired six new exploration and production licenses in the first half of the year, laying the groundwork for future production growth.
Refinery throughput in the first half rose to 8.75 million tons (361,500 b.p.d.) from 8.73 million tons (360,600 b.p.d.). Crude oil exports increased 11.7% to 7.25 million tons from 6.49 million tons in the first half of 2004, equaling about 40% of production. Refined product exports jumped 14% to 3.02 million tons from 2.64 million last year.
A presentation highlighting key financial and production figures and the full US GAAP financial report are available on the Sibneft website.