Russia's No. 3 oil producer TNK-BP International, part-owned by U.K. oil major BP PLC (BP), said Tuesday its third-quarter net profit fell 14% despite higher oil prices and output, and that it expects further output growth.

The company said net profit under U.S. GAAP accounting standards for July to September was $1.45 billion, down from $1.68 billion a year earlier, when the company booked a profit from a sale of its oil services division.

TNK-BP International is the parent company of Moscow-listed TNK-BP Holding (TNBP.RS), which is responsible for a quarter of BP's oil output.

The company's daily production stood at 1.716 million barrels of oil equivalent in the quarter, down from 1.749 million in the second quarter. The decrease was due to lower production of natural gas, which was due to seasonality, the company said.

The company said it expects a 3% output growth for the full year of 2010, and further growth of between 1% and 3% in 2011.

However, the company's Chief Financial Officer Jonathan Muir said production at the West Siberian fields, the backbone of TNK-BP's oil output, was down 3.5% on year, and is expected to suffer the same decline in 2011. TNK-BP said capital expenditure for 2010 will total around $4.0 billion, a decline from the $4.4 billion guidance at the beginning of the year, due to exchange rate changes and a slight slowdown at the Yamal development.

TNK-BP International's revenue jumped to $11.40 billion. Operating cash flow was $3.01 billion in the third quarter, while earnings before interest, taxes, depreciation and amortization, or Ebitda, was $2.56 billion. "Strong results of our business in Russia , combined with our recently announced agreements to acquire assets in Venezuela and Vietnam , provide TNK-BP with a solid platform for further growth and profitability," Chief Executive Officer Mikhail Fridman said in a statement.

The company said it regards its new Vietnam assets as a base for expansion in other countries in the region. As for the acquisition of assets in Algeria , the company said it expects the outcome of the negotiations with BP "well into 2011".

Διαβάστε ακόμα