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4 Jun, 2008 03:54

Market backs TNK-BP despite profit drop

Russo-British oil giant TNK-BP, beset by shareholders’ disputes, has seen a 21% drop in profit. Despite the ongoing conflict, shares of the venture are rising on the RTS stock exchange.

The net profit of TNK-BP International Limited has dropped to $US 5.3 billion in 2007, according to U.S. GAAP standards.

The dividends at year-end made up $US 2.6 billion – 48% lower than 2006.

However, experts claim even if the conflict is dramatised by the media, it is having little effect on the company’s activities.

Kirill Yankovsky, equity strategist at ATON Unicredit, told RT that TNK-BP sees “no upward or downward trend” but just grows with the market.

The owners’ dispute has no short-term impact on the activities of the oil major, said Dmitry Lyutyagin, energy expert at Veles Capital. The conflict could affect TNK-BP’s future projects and investments in the long-term though. “I would say the company can lose potential profits,” the expert said.

Experts have voiced one of the possible scenarios for BP’s share to be sold to Gazprom. 

The TNK-BP joint venture was founded in 2003. Now it is the third largest oil company, producing over 78 million tonnes a year.