ITERA has increased cost of actives and profitability of sales

ITERA Oil and Gas Company published today, November 14, its financial returns under RAS (Russia Accounting Standards) for the 3-d quarter of 2006.

The value of ITERA Oil and Gas Company assets as for the first nine months of 2006 accounted for RuR24 433 415 thousand. This is 98.94% more than that of the last year similar period.

ITERA Oil and Gas Company Press-Service explained to REGIONS.RU that this index went up due to considerable size of credit resources raised within the accounting period.  ITERA Oil and Gas Company needed these credit resources to finance its projects. As a result, the size of working assets, such as financial investment and monetary assets, apparently increased. In particular, in June 2006 year, the Bank for Foreign Economic Activity and ITERA Oil and Gas Company made an agreement to open a USD 450 million credit line at 8% annual interest.

If compared to last year, ITERA Oil and Gas Company had fattened its profits from sales by 17.84% (from RuR1’808’157 thousand to RuR2’130’834 thousand) and reduced its administrative costs by 16.15% (from RuR1’054’435 thousand to RuR884’195 thousand). This had resulted in net profit going up by 49.07% to RuR1’112’529 thousand within the first nine months of 2006.

At that, the revenue of the company for nine months of 2006 went down by 21.03% from RuR21’494’631 thousand to RuR16’974’539 thousand. This reduction was due to optimized gas sale scheme employed from the beginning of 2006. In the past, ITERA Oil and Gas Company was transporting gas through ITERA Holding, its affiliate.  ITERA Holding had been excluded from the selling scheme in 2006. Instead, ITERA Oil and Gas Company made a transportation agreement directly with OAO Gazprom. As a result, ITERA optimized its expenditure pattern and raised return on sales.

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