Sibneft Releases Audited 2002 U.S. GAAP Financial Results

Moscow, June 11, 2003. Sibneft revenues rose 33.6% to $4.777 billion in 2002 from $3.576 billion in 2001, according to audited, consolidated U.S. GAAP financial results released today. Earnings before interest, tax, depreciation and amortization (EBITDA) were $1.803 billion last year, an increase of 4.9% from $1.719 billion in 2001.

Net income for 2002 was $1.161 billion compared to $1.305 billion in 2001. The figures reported today were largely in line with preliminary results released earlier this year.

The introduction of the mineral extraction tax, higher transportation tariffs and export duties, and expenses related to expansion into new distribution markets restricted EBITDA from growing in tandem with total sales in 2002. Net income was restricted by increased amortization due to higher production, and interest expenses on corporate debt.

Sibneft boosted crude oil production by 27.4% in 2002 to 26.344 million tons (536,700 barrels per day), the fastest rate of growth in the industry. The company also led Russian oil majors with EBITDA of $9.25 per barrel of oil, while lifting costs remained stable at $1.71 per barrel. Capital expenditures for the year totaled $959 million, up from $619 million the previous year.

“Sibneft remained Russia’s leading oil company across several of the most important operational and financial indicators in 2002,” said Sibneft president Eugene Shvidler. “Last year’s results serve as a foundation for continued growth and success on the back of the company’s strong asset base.”