OREANDA-NEWS. October 28, 2009. TNK-BP International (TNK-BP) released preliminary 9M09 and 3Q09 US GAAP financials. In 3Q09 the company’s revenue soared 26% QoQ, while EBITDA jumped 24% QoQ. Net income went up 11% QoQ, while net margin slipped from 17% to 15%, reported the press-centre of OTKRITIE Financial Corporation.

View. Unfortunately, the company did not reveal its COGS, consequently we cannot comment in specific detail on its operating income. Nevertheless, we believe that TNK-BP could post a robust revenue-COGS performance in 9M09 because (according to its own data) it has reduced operating, general and administrative costs by US4.1bn due to ruble weakening.

It also maintains that it cut costs by an additional US 500m thanks to the sale of unprofitable oilfield service companies. The company announced that it plans to release full 9M09 US GAAP financial statements in early November. Of particular interest will be a look at the company’s 9M09 COGS performance excluding one-offs. This could provide some specifics for TNK-BP Holding 9M09 financials, as the subsidiary only releases half-year results. It usually contributes 90-91% to TNK-BP’s EBITDA.

Valuation. TNK-BP Holding’s common stocks trade on P/E at a 24% discount to the rest of the energy sector.

Action. We regard this news as neutral for TNK-BP Holding’s stocks and believe that investors would prefer to look at TNK-BP’s full 9M09 set of results.