Sibneft explains the fall in profits by the fact that last year it received income from the sale of its stake in ONACO/Orenburgneft. "Without this income, net profit dropped by 2%, as against the respective last year's indicator, as a result of a tangible increase in profit tax deductions, export duties and transport costs," the press release says.
In the January-June period, the company's earnings increased by 17%, to as much as $4,014 million.
"The increase took place against the background of an 11% growth in crude production - from 15 million tons in the first six months of 2003 to 16.62 million tons in the same period of this year," the press release continues.
Excluding income from the share in Slavneft's authorised capital and considering the difference in depreciation costs, Sibneft's net profit indicator coincides with that of Sibneft and its subsidiaries over the same period by Russian accounting standards (RSBU), i.e., 30.1 billion roubles.
"There was a tangible increase in Sibneft's income over the first half of this year, while its expenditures were affected by external factors common for the entire Russian oil sector," said Yevgeny Shvidler, Sibneft's president. "In the months remaining till the end of the year, we shall continue to adapt our growth strategy to the new realities of the world economy. At the same time, we intend to preserve our leading positions in the oil sector as regards a wide range of indicators."
Sibneft's proven oil reserves exceed 4 billion barrels, which puts it on a par with the world's twenty major private oil companies.
Sibneft also owns 1,442.3 million cubic feet (40.8 billion cubic metres) of proven gas reserves.
