Sibneft Releases 2004 Consolidated Financial Results

Moscow, July 12, 2005. Sibneft revenues soared 32% in 2004 to $8.89 billion, according to full-year consolidated US GAAP financial results released by the company today.

Earnings before taxes, interest, depreciation and amortization (EBITDA) also rose substantially last year, up 39% to $3.24 billion, despite significant growth in mineral resource extraction taxes, export duties, and transportation and utility costs. Direct operating costs rose 8% during the year, or more than four times less than the rate of growth in revenue.

Sibneft had net income of $2.05 billion in 2004, with earnings constrained by higher income tax payments and social expenses. The company’s overall tax burden essentially doubled from the previous year.

As of December 31, 2004, Sibneft had debts totaling $1.45 billion.

“Sibneft demonstrated its efficiency by posting operating income growth of 43% last year,” said Sibneft president Eugene Shvidler. “Our challenges going forward are to continue to improve operational and financial performance, to hold down costs, and to invest in our existing fields while acquiring and developing new production assets.”



Key Sibneft 2004 Financial Figures

(million dollars)

2004

2003

Total Revenues

8.886

6.717

Operating Expenses

1,927

1,786

EBITDA

3,242

2,337

Operating Income

2,639

1,845

Net Income

2,046

2,278

Total Outstanding Debt

1,448

1,589