ROSN.L Regulatory News (ROSN)

16 Jan 2008 09:20

OJSC OC Rosneft16 January 2008 Rosneft reports US GAAP results for the three and nine months ending September 30, 2007 OJSC Rosneft (Rosneft or "the Company") today reported its consolidatedfinancial results in accordance with US GAAP for the three and nine monthsending September 30, 2007. Summary financial results: Q3 2007 Q3 2006 Ch.yoy, Q2 2007 Ch.qoq, 9M 2007 9M 2006 Ch.yoy, % % %USDmillion Revenue 13,742 8,951 53.5% 10,785 24.7% 32,747 24,880 31.6%EBITDA 4,023 2,201 82.8% 3,536 13.8% 9,026 6,404 40.9%Net 1,890 1,051 79.8% 7,655 -75.3% 9,910 2,930 238.2%income AdjustedEBITDA* 4,054 2,126 90.7% 3,581 13.2% 9,399 6,391 47.1%AdjustedNet 1,928 976 97.5% 1,703 13.2% 4,328 2,917 48.4%income** *Adjusted for the effect of non-operating accrual of fines and penalties related to pre-acquisition Yuganskneftegaz tax debt **Adjusted for the effect of non-operating accrual of fines and penalties related to pre-acquisition Yuganskneftegaz tax debt as well the effect of proceeds from the Yukos bankruptcy. In the third quarter of 2007, EBITDA, adjusted for the effect of accrual offines and penalties related to pre-acquisition Yuganskneftegaz tax debt in theamount of USD 31 million, rose by 90.7% year-on-year to USD 4,054 million fromUSD 2,126 million in the third quarter of 2006 and by 13.2% quarter-on-quarter(from USD 3,581 million in the second quarter of 2007). Similarly, in the firstnine months of 2007, EBITDA, adjusted for the effect of accrual of fines andpenalties related to pre-acquisition Yuganskneftegaz tax debt in the amount ofUSD 373 million and USD (-13) million in the first nine months of 2007 and 2006,respectively, increased by 47.1% to USD 9,399 million in the first nine monthsof 2007 from USD 6,391 million in the first nine months of 2006. In the third quarter of 2007, net income, adjusted for the effect ofnon-operating accrual of fines and penalties related to pre-acquisitionYuganskneftegaz tax debt in the amount of USD 38 million and USD (-75) millionin the third quarter of 2007 and 2006, respectively, increased by 97.5%year-on-year (to USD 1,928 million from USD 976 million in the third quarter of2006) and by 13.2 % quarter-on-quarter (to USD 1,928 million from USD 1,703million in the second quarter of 2007). In the first nine months of 2007, netincome, adjusted for the effect of non-operating accrual of fines and penaltiesrelated to pre-acquisition Yuganskneftegaz tax debt proceeds in the amount ofUSD 437 million and USD (-13) million for the nine months of 2007 and 2006,respectively, as well the net effect of receipt of the YUKOS bankruptcyreceivables in the amount of USD 6,019 million in the first nine months of 2007,increased by 48.4% to USD 4,328 million in the first nine months of 2007 fromUSD 2,917 million in the first nine months of 2006. In the third quarter of 2007 Rosneft and its consolidated subsidiaries increasedproduction of crude oil by 29.2% to 192.35 million barrels from 148.88 millionbarrels in the third quarter of 2006. This growth was largely due to an increasein production at Yuganskneftegaz to 113.05 million barrels in the third quarterof 2007 from 106.69 million barrels in the same period of 2006, or by 6.0%, aswell as the acquisition of Tomskneft and Samaraneftegaz, which collectivelycontributed 57.15 million barrels to Rosneft's crude oil production from the dayof their acquisition in May 2007 to September 30, 2007. Including share inaffiliates, Rosneft increased its production by 32.6% to 199.08 million barrelsin the third quarter of 2007 from 150.12 million barrels in the third quarter of2006. In the first nine months of 2007, Rosneft and its consolidatedsubsidiaries increased crude oil production by 19.6% to 511.62 million barrels(up from 427.67 million barrels in the same period of 2006) while crude oilproduction, including equity share in affiliates, increased by 23.2% to 531.41million barrels (up from 431.23 million barrels in the nine months of 2006).Among the factors contributing to this increase was a growth in average wellflow rates, which increased from 109.73 barrels per day in the nine months of2006 to 112.5 barrels per day in the same period of 2007. In the third quarter of 2007, Rosneft and its consolidated subsidiaries produced3.89 billion cubic meters (bcm) of natural and associated gas, an increase of15.9% compared to the same period of 2006. In the first nine months of 2007Rosneft's production of natural and associated gas increased by 14.6% to 11.60bcm from 10.13 bcm in the same period of 2006. The growth was primarily due tothe increased production at Krasnodarneftegaz, Grozneftegaz and Purneftegaz.Including share in affiliates, gas production increased by 14.8% to 11.63 bcm inthe nine months of 2007. In the third quarter petroleum products output increased by 109.3% year-on-yearto 11.93 million tonnes in 2007 from 5.70 million tonnes in 2006. For the firstnine months of 2007, output of petroleum products from Rosneft-produced crudeoil, including output at mini-refineries and refineries controlled by thirdparties, increased by 56.0% to 26.32 million tonnes from 16.87 million tonnesfor the same period of 2006. Sergey Bogdanchikov, president of Rosneft, commented on the published results bysaying, "The third quarter was another record quarter for Rosneft both in termsof operational performance and increased profitability, whether reviewed only onan organic basis or incorporating recent acquisitions. We continued todemonstrate industry leading organic production and earnings growth rates.Profitability per barrel increased despite taxation and inflation cost increasesexceeding oil price appreciation. As outlined in our communication following thereview of our 2008 business plan at our Board of Directors meeting in December,we are confident in our ability to continue to demonstrate leading operationaland financial performance through rigorous cost control, improved downstreammargins via increased sales through new and more profitable sales channels toend customers and continued organic volume growth." Rosneft's US GAAP financial statements and management discussion and analysis(MD&A) for the third quarter and nine months ending September 30, 2007 andprevious periods will be made available for download on the Company's website at www.rosneft.com. OJSC Rosneft Information Division Tel.: +7 (495)-221-31-07 Fax: +7 (495)-411-54-21 n_manvelov@rosneft.ru January 16, 2008 These materials contain statements about future events and expectations that areforward-looking in nature. Any statement in these materials that is not astatement of historical fact is a forward-looking statement that involves knownand unknown risks, uncertainties and other factors which may cause actualresults, performance or achievements expressed or implied by suchforward-looking statements to differ. We assume no obligations to update theforward-looking statements contained herein to reflect actual results, changesin assumptions or changes in factors affecting these statements. This information is provided by RNS The company news service from the London Stock Exchange END