(Adds details, interview with CEO)
LONDON (Thomson Financial) - Sibir Energy Plc, the AIM-listed oil producer,
reported increased 2007 profits, buoyed by improved production at its Russian
oil fields and gains from the acquisition of oil refiner Moscow Oil and Gas Co.
Pretax profit rose to $343.67 million in 2007 from $111.97 million
previously, while net profit jumped to $282.43 million from $88.97 million.
Revenue grew to $1.77 billion from $1.05 billion.
Production for the year rose 80 percent to 17.8 million barrels, with daily
output reaching 63,100 barrels of oil per day (bopd) by end-2007, up from 38,900
bopd a year earlier, reflecting increased output from the Salym fields.
Salym, a 50-50 joint venture between Sibir and Royal Dutch Shell Plc, pumped
30.7 million barrels in total in 2007, up from 14.9 million previously. Its
output ramped up from 64,000 bopd at the start of the year to 113,000 bopd by
year end.
Sibir said plans are underway to boost Salym's output to 45 million barrels
in 2008, with year end volumes expected to reach between 130,000 bopd and
140,000 bopd.
The refinery processed 72.9 million barrels of crude in 2007, with Sibir's
share of tolling capacity totaling 21.4 million barrels, or an average of 58,630
bopd, higher than previous year's level following the completion of the MOGC
deal in September.
For 2008, crude processing volumes are expected to reach 71.4 million
barrels, of which Sibir is expected to have tolling access to 35.7 million
barrels, or 97,800 bopd.
Maintenance work however is expected to slow crude oil processing at the
refinery in April and May, resulting in lower volumes for the first half of
2008, Sibir said.
Henry Cameron, the chief executive, said plans to double the size the
company in 18 months remain on track "save only that if the plan materialises it
is likely to be sooner than later and well within the earlier 18 month
forecast".
He said the investment environment in Russia for Sibir has "never been more
stable or predictable" following the MOGC deal that boosted Russian investors'
stake in the company to over 65 percent.
"The Russian government wants to see Russian control over its natural
resources through state owned companies or Russian owned entities. Sibir
anticipated these developments many years ago and has intentionally pursued a
strategy of majority Russian ownership," he added.
Plans are being drawn up for a $1 billion refinery upgrade aimed at lifting
the utilisation capacity of the 240,000-barrel a day facility to 90 percent from
around 80 percent currently and raise the production of light products like
gasoline and diesel, Cameron told Thomson Financial News in an interview.
The project is expected to be completed by end-2011, said Cameron, adding
Sibir is considering bank financing to support its share of the cost.
The refinery, which supplies over 50 percent of Moscow's motor fuel needs,
operates as a tolling operation and does not buy crude or sell oil products
itself. Sibir has interests in over 180 service stations in Moscow and the
surrounding region.
At 10.39 am, Sibir shares were up nearly 4 percent at 777 pence.
monicca.egoy@thomsonreuters.com
mbe/jfr
COPYRIGHT
Copyright Thomson Financial News Limited 2008. All rights reserved.
The copying, republication or redistribution of Thomson Financial News Content,
including by framing or similar means, is expressly prohibited without the prior
written consent of Thomson Financial News.
|