Pjsc Tatneft Regulatory News (ATAD)

1 May 2009 07:00



30 April 2009

Correction: oil reserves using 12 month average oil price for 2008 shall read 878 million tons (6,255 million barrels)

OAO Tatneft published its audited consolidated U.S. GAAP financial statements for the year ended December 31, 2008

OAO Tatneft (the "Company") announces today that it published on its web-site http://www.tatneft.ru/eng/buh.htm the audited consolidated financial statements for the year ended December 31, 2008 prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") (the "Financial Statements"). 

Selected financial highlights below are based on the respective U.S. GAAP financial statements of the Company. Russian Ruble amounts below have been translated into U.S. Dollars at the exchange rates on the last day of the respective reporting period. 

The Company's consolidated revenues in 2008 were 444,332 million Rubles (US$ 15,124 million) as compared to 356,276 million Rubles (US$ 14,512 million) in 2007. The consolidated net income for 2008 was 8,413 million Rubles (US$ 286 million) as compared to 43,279 million Rubles (US$ 1,763 million) in 2007. In 2008 there were a number of significant nonrecurring and exceptional items (most of which are classified as non-cash) negatively affecting our net income under U.S. GAAP. These include mark-to-market adjustments, notably a non-cash foreign exchange loss of 6,582 million Rubles due to revaluation of US dollar denominated bank debt of our subsidiary TANECO incurred to finance the construction of the refinery and petrochemical complex in Nizhnekamsk; and a 9,470 million Rubles reduction in the carrying value of the Company's holding in an investment fund, where the Company's original contribution was made mainly by way of Tatneft shares. The reduction relates to the non-cash downward revision in the carrying value of market securities held by the fund and does not require any new cash injection by the Company. These nonrecurring items also include a bad debt provision on accounts receivable related to sales of crude oil to Ukraine prior to October 2007 in the amount of 10,786 million Rubles. As announced previously, the Company is pursuing all legal means to recover the related receivables and remains confident that these efforts will be successful. The Company's net income before the nonrecurring and exceptional items*, which are fully described in the Management's Discussion & Analysis published together with the Financial Statements, for 2008 was 45,983 million Rubles (US$ 1,565 million). 

Total consolidated assets of the Company increased from 370,219 million Rubles (US$ 15,080 million) as of December 31, 2007, to 392,980 million Rubles (US$ 13,376 million) as of December 31, 2008. 

Total consolidated liabilities of the Company increased from 101,661 million Rubles (US$ 4,141 million) as of December 31, 2007, to 128,121 million Rubles (US$ 4,360 million) as of December 31, 2008. 

Total consolidated shareholders' equity decreased from 264,059 million Rubles (US$ 10,756 million) as of December 31, 2007, to 260,276 million Rubles (US$ 8,859 million) as of December 31, 2008. 

In conjunction with the release of the Financial Statements the Company also publishes updated information about its proved oil reserves. As of December 31, 2008 the Company's total proved reserves (SPE/WPC) of crude oil and condensate were 790 million tons (5,625 million barrels) using the year end constant oil price, and 878 million tons (6,255 million barrels) using 12-month average oil price for the year 2008. The Company believes that the 12-month average oil price case gives a fair presentation of its oil reserves in current economic conditions, especially in a highly volatile oil price environment such as observed during the year of 2008. 

The Company's representatives will discuss the U.S. GAAP financial highlights for 2008 on a conference call on 5 May 2009 at 12:00 p.m. Moscow time, 9:00 a.m. BST. 

To participate in the conference call please dial the following number in the United Kingdom +44 208 996 3920 using PIN 968 597. The conference call replay will be available for 14 days from 6 May 2009 by dialing +44 207 136 9233 in the U.K. using passcode 91655323. 

The Financial Statements have been filed with the Document Viewing Facility of the UKLA. 

----------------------------

* Net income before the nonrecurring and exceptional items is a non-US GAAP financial measure.

Forward-looking statements: These materials contain statements about future events and expectations that are forward-looking in nature. Any statement in these materials that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements expressed or implied by such forward-looking statements to differ. OAO Tatneft assumes no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.