Russian shareholders ready to buy out BP's stake in TNK-BP oil major.

By bne IntelliNews May 31, 2012
The head of the Russian shareholder of TNK-BP oil major AAR alliance Stan Polovets told Russia Today that the parity ownership scheme exhausted itself and AAR is ready to buy out the stake of BP or to swap it for BP shares. TNK-BP is third largest oil company in Russia, owned on parity conditions by British oil major BP and AAR alliance (Alfa group, Access Industries and Renova controlled by tycoons Mikhail Friedman, Leonard Blavatnik and Viktor Vekselberg, respectively). TNK-BP also controls 50% stake in Slavneft, two companies accounting for about 16% of Russia's oil extraction. In 2011 Russian shareholders of TNK-BP (AAR alliance) managed to block the "deal of the year" supported on the government level, a strategic alliance for exploring the Arctic shelf between BP and Rosneft based on a USD 16bn worth share swap. TNK-BP US GAAP net profit went up by 17% y/y to USD 2.2bn in Q1/12, with revenues increasing by 16% y/y to USD 16.1bn due to higher Urals blend prices and extraction volumes. Company's net debt in Q2/12 went up by 95% to USD 7.5bn, capital investment going up by 22% to USD 1.1bn. Extraction of liquid hydrocarbons increased by 4.2% to 21.2mn tons. Notably, this makes the first IFRS report the company issued, reporting in US GAAP previously. TNK-BP US GAAP net profit went up by 41% y/y to record-high USD 9.21bn in 2011, revenues went up by 33.5% y/y to USD 54.89bn and EBITDA increased by 34% y/y to USD 13.74bn. Improved revenues were previously attributed to higher oil prices, as well as active overseas operations. TNK-BP's net debt as of January 1 2012 increased by 44% y/y to USD 6.74bn. TNK-BP US GAAP net profit declined by 5.7% y/y to USD 5bn in 2009 and increased by 17% y/y in 2010.

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