Alliance Oil Company Ltd / 3rd Quarter Results 21.11.2013 07:30 Dissemination of a UK Regulatory Announcement, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement.
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Quarter ended 30 September 2013 -- Revenue of MUSD 1,013.7, up 13% from Q2 2013. -- Profit before tax of MUSD 91.1, up 54% from Q2 2013. -- Profit for the period of MUSD 61.7, up 54% from Q2 2013. -- EBITDA of MUSD 175.1, up 1% from Q2 2013. Nine months ended 30 September 2013 -- Revenue of MUSD 2,795.4, up 10% from 9m 2012. -- Profit before tax of MUSD 214.1, down 43% from 9m 2012. -- Profit for the period of MUSD 145.8, down 50% from 9m 2012. -- EBITDA of MUSD 499.1, down 12% from 9m 2012. -- Transactions completed to form joint venture with Repsol. -- Launch of gas production in Tomsk region and Khanty-Mansiysk region. -- Eurobond offering of MUSD 500 completed in May 2013. -- Preference shares issue raised MUSD 100 in June 2013. Subsequent events -- Alliance Group's potential acquisition of Alliance Oil Company by way of amalgamation. -- Tender offer for convertible bonds of MUSD 265. Quarter Quarte ?, % Quarter Nine Nine ?, % ended r ended months months 30 ended 30 ended ended Septembe 30 Septembe 30 30 r 2013 June r 2012 Septemb Septembe 2013 er 2013 r 2012
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Operational results Consolidated crude 51,807 52,683 -2% 53,315 52,133 54,413 -4% oil production, bopd Consolidated gas and 9,333 9,091 3% - 7,422 - 100% gas liquids production, boepd Refining volume, bopd 96,428 85,026 13% 84,571 89,501 79,325 13% Financial results Revenue, MUSD 1,013.7 900.7 13% 904.3 2,795.4 2,536.6 10% Profit for the 61.7 40.0 54% 132.0 145.8 290.8 -50% period, MUSD EBITDA, MUSD 175.1 173.1 1% 214.0 499.1 564.9 -12% Basic earnings per 0.18 0.11 64% 0.72 0.43 1.62 -73% ordinary share, USD Diluted earnings per 0.18 0.11 64% 0.66 0.43 1.53 -72% ordinary share, USD Dear Shareholders, In the third quarter of 2013, Alliance Oil Company demonstrated strong financial and operational performance. Crude oil and oil product prices increased and the average exchange rate of the RUB to the USD weakened compared to the previous quarter. Consolidated Revenue, EBITDA and Profit grew by 13%, 1% and 54%, respectively, compared to the second quarter of 2013. The average daily production of hydrocarbons was flat quarter-on-quarter. Meanwhile refining volumes increased by 13% compared to the second quarter of 2013 despite the water flooding in the Russian Far East. In the upstream segment, consolidated oil production declined slightly compared to the previous quarter primarily due to lower production in the Timano-Pechora and Tomsk regions. Approximately 43% of crude production was mineral extraction tax exempt in the quarter. Consolidated and joint venture gas and gas liquids production increased quarter-on-quarter. In the downstream segment, the record high refining throughput was driven by continued high oil product demand in the wholesale and bunker markets. The Company sold 8.9 million barrels of oil products in the third quarter of 2013 compared to 8.3 million barrels in the previous quarter. The Company's balance sheet remained solid, total debt was essentially unchanged while the net debt to EBITDA ratio increased quarter-on-quarter from 2.5 to 2.9. Outlook In October 2013, the total hydrocarbon production amounted to 66,200 barrels of oil equivalent per day, including about 5,800 barrels of oil equivalent per day from the joint venture with Repsol. The Company expects to meet its double digit production growth target for the full year of 2013. The refining volumes increased further in October 2013 marking another milestone of raising the refining capacity at the Khabarovsk refinery to 100,000 barrels of oil per day. As previously announced, the modernisation plan of the Khabarovsk refinery and the launch of the new hydroprocessing complex have been reviewed. The mechanical completion and testing of the Hydrotreater and Sulfur production units are expected in the end of 2013. The testing and commissioning of the Hydrocracker and Hydrogen production units are planned for the first half of 2014. The final testing schedule and launch will depend on actual winter conditions. The schedule for connecting the Khabarovsk refinery to the ESPO system was also adjusted against background of the unprecedented water flooding in the Russian Far East. The first crude delivery to the refinery via pipeline is now scheduled for the second half of 2014. In late October, Alliance Group proposed to acquire all shares of Alliance Oil Company, not currently held by Alliance Group and its affiliates. The independent directors of Alliance Oil Company's board have recommended that shareholders vote in favour of the transaction by way of amalgamation, at a Special General Meeting on 2 December 2013. Subject to approval by the shareholders and certain other conditions, the consummation of the transaction would imply that Alliance Oil Company is taken private and the shares of the Company are delisted from NASDAQ OMX Stockholm. In connection with this, Alliance Oil Company launched a tender offer to redeem outstanding convertible bonds of MUSD 265, subject to the completion of the amalgamation. Arsen Idrisov, Managing Director For further information: Arsen E Idrisov, Managing Director, Alliance Oil Company Ltd, telephone +7 (495) 777 18 08. Eric Forss, Chairman of the Board, telephone +46 8 611 49 90. Conference call Date: Thursday, 21 November 2013 Time: 10.00 CET To participate in the conference call you may choose one of the following options: Telephone Dial one of the following numbers a few minutes before the conference starts: Location Local Number Toll-Free
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Russia +7 495 662 5793
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Sweden +46 8505 20278 0200 125 058
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United Kingdom +44 20 7190 1595 0800 358 5263
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Conference ID: 4650834 Web The conference call will be webcasted live at www.allianceoilco.com. A replay of the conference call will be available at www.allianceoilco.com. Alliance Oil Company Ltd is a leading independent oil and gas company with vertically integrated operations in Russia and Kazakhstan. Alliance Oil has substantial oil and gas reserves and downstream operations that include the Khabarovsk refinery and the leading network of gas stations and wholesale oil products terminals in the Russian Far East. Alliance Oil's depository receipts are traded on the NASDAQ OMX Nordic under the symbol AOIL. Click on, or paste the following link into your web browser, to view the associated documents https://newsclient.omxgroup.com/cds/DisclosureAttachmentServlet?messageAttachmentId=451565 News Source: NASDAQ OMX 21.11.2013 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English Company: Alliance Oil Company Ltd Sweden Phone: Fax: E-mail: Internet: ISIN: XS0493579238 Category Code: QRT LSE Ticker: 0QBX Sequence Number: 1774 Time of Receipt: Nov 21, 2013 07:29:57 End of Announcement DGAP News-Service
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Quarter ended 30 September 2013 -- Revenue of MUSD 1,013.7, up 13% from Q2 2013. -- Profit before tax of MUSD 91.1, up 54% from Q2 2013. -- Profit for the period of MUSD 61.7, up 54% from Q2 2013. -- EBITDA of MUSD 175.1, up 1% from Q2 2013. Nine months ended 30 September 2013 -- Revenue of MUSD 2,795.4, up 10% from 9m 2012. -- Profit before tax of MUSD 214.1, down 43% from 9m 2012. -- Profit for the period of MUSD 145.8, down 50% from 9m 2012. -- EBITDA of MUSD 499.1, down 12% from 9m 2012. -- Transactions completed to form joint venture with Repsol. -- Launch of gas production in Tomsk region and Khanty-Mansiysk region. -- Eurobond offering of MUSD 500 completed in May 2013. -- Preference shares issue raised MUSD 100 in June 2013. Subsequent events -- Alliance Group's potential acquisition of Alliance Oil Company by way of amalgamation. -- Tender offer for convertible bonds of MUSD 265. Quarter Quarte ?, % Quarter Nine Nine ?, % ended r ended months months 30 ended 30 ended ended Septembe 30 Septembe 30 30 r 2013 June r 2012 Septemb Septembe 2013 er 2013 r 2012
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Operational results Consolidated crude 51,807 52,683 -2% 53,315 52,133 54,413 -4% oil production, bopd Consolidated gas and 9,333 9,091 3% - 7,422 - 100% gas liquids production, boepd Refining volume, bopd 96,428 85,026 13% 84,571 89,501 79,325 13% Financial results Revenue, MUSD 1,013.7 900.7 13% 904.3 2,795.4 2,536.6 10% Profit for the 61.7 40.0 54% 132.0 145.8 290.8 -50% period, MUSD EBITDA, MUSD 175.1 173.1 1% 214.0 499.1 564.9 -12% Basic earnings per 0.18 0.11 64% 0.72 0.43 1.62 -73% ordinary share, USD Diluted earnings per 0.18 0.11 64% 0.66 0.43 1.53 -72% ordinary share, USD Dear Shareholders, In the third quarter of 2013, Alliance Oil Company demonstrated strong financial and operational performance. Crude oil and oil product prices increased and the average exchange rate of the RUB to the USD weakened compared to the previous quarter. Consolidated Revenue, EBITDA and Profit grew by 13%, 1% and 54%, respectively, compared to the second quarter of 2013. The average daily production of hydrocarbons was flat quarter-on-quarter. Meanwhile refining volumes increased by 13% compared to the second quarter of 2013 despite the water flooding in the Russian Far East. In the upstream segment, consolidated oil production declined slightly compared to the previous quarter primarily due to lower production in the Timano-Pechora and Tomsk regions. Approximately 43% of crude production was mineral extraction tax exempt in the quarter. Consolidated and joint venture gas and gas liquids production increased quarter-on-quarter. In the downstream segment, the record high refining throughput was driven by continued high oil product demand in the wholesale and bunker markets. The Company sold 8.9 million barrels of oil products in the third quarter of 2013 compared to 8.3 million barrels in the previous quarter. The Company's balance sheet remained solid, total debt was essentially unchanged while the net debt to EBITDA ratio increased quarter-on-quarter from 2.5 to 2.9. Outlook In October 2013, the total hydrocarbon production amounted to 66,200 barrels of oil equivalent per day, including about 5,800 barrels of oil equivalent per day from the joint venture with Repsol. The Company expects to meet its double digit production growth target for the full year of 2013. The refining volumes increased further in October 2013 marking another milestone of raising the refining capacity at the Khabarovsk refinery to 100,000 barrels of oil per day. As previously announced, the modernisation plan of the Khabarovsk refinery and the launch of the new hydroprocessing complex have been reviewed. The mechanical completion and testing of the Hydrotreater and Sulfur production units are expected in the end of 2013. The testing and commissioning of the Hydrocracker and Hydrogen production units are planned for the first half of 2014. The final testing schedule and launch will depend on actual winter conditions. The schedule for connecting the Khabarovsk refinery to the ESPO system was also adjusted against background of the unprecedented water flooding in the Russian Far East. The first crude delivery to the refinery via pipeline is now scheduled for the second half of 2014. In late October, Alliance Group proposed to acquire all shares of Alliance Oil Company, not currently held by Alliance Group and its affiliates. The independent directors of Alliance Oil Company's board have recommended that shareholders vote in favour of the transaction by way of amalgamation, at a Special General Meeting on 2 December 2013. Subject to approval by the shareholders and certain other conditions, the consummation of the transaction would imply that Alliance Oil Company is taken private and the shares of the Company are delisted from NASDAQ OMX Stockholm. In connection with this, Alliance Oil Company launched a tender offer to redeem outstanding convertible bonds of MUSD 265, subject to the completion of the amalgamation. Arsen Idrisov, Managing Director For further information: Arsen E Idrisov, Managing Director, Alliance Oil Company Ltd, telephone +7 (495) 777 18 08. Eric Forss, Chairman of the Board, telephone +46 8 611 49 90. Conference call Date: Thursday, 21 November 2013 Time: 10.00 CET To participate in the conference call you may choose one of the following options: Telephone Dial one of the following numbers a few minutes before the conference starts: Location Local Number Toll-Free
-----------------------------------------------
Russia +7 495 662 5793
-----------------------------------------------
Sweden +46 8505 20278 0200 125 058
-----------------------------------------------
United Kingdom +44 20 7190 1595 0800 358 5263
-----------------------------------------------
Conference ID: 4650834 Web The conference call will be webcasted live at www.allianceoilco.com. A replay of the conference call will be available at www.allianceoilco.com. Alliance Oil Company Ltd is a leading independent oil and gas company with vertically integrated operations in Russia and Kazakhstan. Alliance Oil has substantial oil and gas reserves and downstream operations that include the Khabarovsk refinery and the leading network of gas stations and wholesale oil products terminals in the Russian Far East. Alliance Oil's depository receipts are traded on the NASDAQ OMX Nordic under the symbol AOIL. Click on, or paste the following link into your web browser, to view the associated documents https://newsclient.omxgroup.com/cds/DisclosureAttachmentServlet?messageAttachmentId=451565 News Source: NASDAQ OMX 21.11.2013 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English Company: Alliance Oil Company Ltd Sweden Phone: Fax: E-mail: Internet: ISIN: XS0493579238 Category Code: QRT LSE Ticker: 0QBX Sequence Number: 1774 Time of Receipt: Nov 21, 2013 07:29:57 End of Announcement DGAP News-Service
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