Sibneft Achieves Record Profits As Revenue Growth Accelerates

Moscow, 25 June 2002; Sibneft almost doubled net profits in 2001 to a record $1.305 billion from $674.8 million the previous year, under full-year US GAAP results released today. Earnings before interest, tax, depreciation and amortization (EBITDA) rose 67% to $1.719 billion from $1.027 billion the previous year.

Sibneft’s robust financial performance was driven by exceptional growth in output, which rose by 20% to 408,000 barrels per day (20.671 million tonnes) from 338,000 barrels per day (17.199 million tonnes) the previous year, and by benefits flowing from the company’s successful consolidation. Sibneft’s strong performance was buttressed by stringent cost control, with direct production costs cut by 3% to just $1.70 per barrel ($12.25 per tonne).

Sibneft was the most profitable of Russia’s major oil companies in 2001, with net income of $63.15 per tonne of output placing the company ahead of its peers. Net margins rose to 37% from 28% the previous year.

Other highlights of the company's 2001 financial results include:

  • Total revenues up 49% to $3.576 billion (2000 - $2.398 billion)
  • Profit before tax up 91% to $1.439 billion (2000 - $753.2 million)
  • Net income per share up 54% to $0.32 (2000 - $0.21)
  • Return on equity rises to 32.3% from 21.3% in 2000
  • Sibneft pays record dividends of $993 million

Sibneft president Eugene Shvidler welcomed the company's record financial performance. "Sibneft now leads the Russian oil sector with higher profits and faster growth than any of its peers. The company is committed to sustaining investment in technology and training in order to maintain its competitive edge in the years to come.”