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Oil firm West Siberian Q1 profit rises 10%

Posted on: June 5, 2009


Reuters – Thursday, May 28

MOSCOW, May 28 – Oil producer West Siberian Resources <WSIBsdb.ST> said net profit rose 10 pct from a year earlier, reversing a fourth quarter 2008 loss as prices increased and demand for its products recovered.

The Russia-focused company said on Thursday that net profit amounted to $50.5 million in the first quarter, up 10 percent year on year. This followed a $290.9 million loss in the fourth quarter of 2008, which included an impairment charge for oil and gas properties. West Siberian Resources, listed in Stockholm, completed its merger with Alliance Oil Company on April 10, 2008, and pending shareholder approval at a meeting on Thursday will change its name to Alliance Oil Company Ltd.

Managing Director Arsen Idrisov said the company was on track to produce 16 million barrels of crude oil in 2009 and to refine and market 21 million barrels of oil products.

Oil production is currently at a level of 45,000 barrels a day and refining volumes 58,000 barrels per day.

West Siberian said in a statement first-quarter revenues were $327.6 million, down 40 percent year-on-year.

Earnings before interest, taxation, depreciation and amortisation totalled $99.8 million, a 20 percent year-on-year increase and up from $6.2 million in the preceding quarter. West Siberian’s total debt fell 27 percent in the first quarter to $629 million from $864 million at the end of 2008. Net debt was $525 million at the end of the first quarter.

Total oil production in the first quarter was 4.2 million barrels and the company’s upstream operations returned to profit as crude oil netbacks stabilised.

Downstream, the Khabarovsk refinery produced 5.2 million barrels and downstream sales totalled 4.8 million barrels.

“We benefited from low domestic crude oil prices early in the year, resulting in lower refinery input costs and better margins on processed oil products,” Idrisov said.

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