MOSCOW - Russian oil company Tatneft said its net profit rose 25 percent year-on-year in the first quarter as lower costs and taxes helped offset a 32.6 percent fall in revenues.
The mid-sized oil firm said on Friday its first quarter net profit rose to 7.93 billion roubles ($254.6 million) according to U.S. generally accepted accounting principles (GAAP), from 6.34 billion roubles in the same period last year.
Revenues in the quarter fell to 73.54 billion roubles from 109.05 billion a year ago, Tatneft said in a statement.
The jump in net profits came on the back of falling costs, which totalled 60.2 billion roubles compared to 98.6 billion a year earlier.
The company said that stabilising crude oil prices, the devaluation of the rouble against the dollar and a lighter tax burden on the industry in the first quarter of 2009 also had a positive effect on the results, helping counteract the impact of a sharply lower oil price.
Tatneft also noted that first quarter of last year included a provision related to crude oil sales to Ukraine, which decreased its net income for that period.
Earnings before interest, taxation, depreciation and amortisation (EBITDA) rose 35 percent year-on-year to 15.1 billion roubles.
Tatneft is controlled by the regional government of Tatarstan, where it holds most of the exploration and production licenses and produces the vast majority of its crude oil. ($1=31.15 Rouble) (Reporting by Simon Shuster; Editing by Hans Peters)