* Framework for integration talks with Rosneft agreed
* TNK-BP's 2012 net income down 13 percent to $7.58 bln
* TNK-BP shares up 4.5 pct, outpacing flat broader market
MOSCOW, Feb 28 Russian crude producer TNK-BP
, which is being taken over by state oil company
Rosneft, posted a 13 percent drop in 2012 net income
on Thursday due to higher taxes.
Rosneft is buying TNK-BP from British oil company BP
and the AAR consortium of Soviet-born tycoons for a total of $55
billion in cash and shares, in a deal that will create the
world's largest listed oil producer.
TNK-BP said on Thursday its net income fell to $7.58 billion
last year due mainly to an increase in export duty. Its
operating cash flow, however, rose 22 percent to $13.24 billion.
Rosneft needs around $40 billion in cash to fund the deal
and has already secured most of the financing via loans from
banks and agreements with trading companies. The company has
said it may also use TNK-BP cash for the deal.
TNK-BP's Chief Financial Officer Jonathan Muir said the
company's board had given the green light for management to
discuss integration with Rosneft.
"Preliminary agreement for a framework under which
management will potentially work with Rosneft was agreed," Muir
said about last week's board meeting, while declining to
disclose details and his personal plans.
"We started dialogue with our counterparts in Rosneft," he
The completion of the deal would bring TNK-BP out of the
management limbo it has been in since October when the deal was
announced, and allow Rosneft to reassure customers and employees
about contracts and start working through cost savings.
Shares in TNK-BP closed up 4.5 percent, compared with a
broadly unchanged wider Moscow market.
Rosneft is expected to get the nod from regulators for the
deal soon, making it possible to close it in the first quarter,
sources have said.
TNK-BP said its revenues last year rose slightly to $60.45
billion from $60.20 billion in 2011.
Earnings before interest, tax, depreciation and amortisation
(EBITDA) were 7 percent lower at $13.35 billion, mainly due to
the increase in export duties and other taxes, as well as
one-off impairments related to its Ukraine business, the firm
TNK-BP said it had replaced 210 percent of its reserves in
2012 under the U.S. Securities and Exchange Commission's LOF
(life of field) standards, or SEC-LOF.