TNK-BP Limited and TNK-BP International US GAAP Consolidated Financial Statements for Full Calendar Year 2004
08 Jul 2005

TNK-BP is pleased to present its US GAAP consolidated financial statements for full calendar year 2004. Financial statements for TNK-BP Limited and for TNK-BP International are now published here http://www.tnk-bp.com/investors/financial/.

The figures are in line with those indicated by the company in March 2005 with EBITDA of $6.4billion and Net Income of $4billion.

These US GAAP consolidated accounts reflect all TNK-BP group trading activities during the first full calendar year of TNK-BP’s existence, following its commencement of operations on August 29^th 2003. They also include comparative data for calendar year ending December 31^st 2003.

These financials are being published in the interests of transparency just as we release results of our annual independently conducted reserves audit.

Highlights of our 2004 results include:

• Production growth of 13% to 72 million tones per annum
  An increase in average daily well flow rates from 10.77 tonnes in 2003 to 12.10 tonnes for 2004.
• Increased refinery throughput from 26.5 million tonnes in 2003 to 27.8 million tones in 2004.
• Sales revenue of $17 billion — 42% higher than in 2003.
• Net profit growth of 43% to $4 billion.
• Payments of duties, taxes and excise in excess of $6.5 billion to the Russian government.
• In terms of corporate income tax, the effective income tax rate was 23.3%, close to the statutory level of 24%.
• Organic and inorganic capital expenditure greater than $1.5bn – almost double the amount for 2003 of $855million.

The main drivers of these 2004 results were the higher production levels and improved operating performance in the Downstream together with a favorable price environment, although this was offset by changes in Russian taxation levels.

As the independent auditors report states, resolution of issues raised by audit notices received by TNK-BP from the Russian taxation authorities for heritage company activities in 2001, remain outstanding.

Please direct any enquiries to Svetlana Borodina, Head of Financial and Trade Communications at TNK-BP in Moscow. Her contact details are svborodina@tnk-bp.ru or telephone + 7 095 777-77-07 extension 1381.

TNK-BP

TNK-BP is a major, vertically integrated Russian oil and gas company. In 2010, average daily oil production totaled 1.74 million barrels per day (excluding a 50% interest of Slavneft). TNK-BP operates five refineries (four in Russia and one in Ukraine) and nearly 1,490 branded retail outlets across both countries.

SEARCH