UPDATE 1-TNK-BP Q3 profits slide on higher costs

* Third-quarter net profit down 14 pct on year

* Revenues $11.4 bln, vs yr-ago $10.26 bln

* Capital expenditure cut to $4 bln

(Adds detail, background)

MOSCOW, Oct 26 (BestGrowthStock) – Russian oil company TNK-BP
(TNBPI.RTS: ), a joint venture that makes up more than a quarter
of BP’s (BP.L: ) reserves, said on Tuesday its third-quarter net
profit fell as transportation and other costs rose.

The company generated net profit of $1.45 billion on
revenues of $11.4 billion. A year earlier TNK-BP earned $1.68
billion on revenues of $10.26 billion.

Its largest rival, Rosneft (ROSN.MM: ), is expected to report
later today that third-quarter profit (Read more your timing to make a profit.)s nearly doubled year on
year. [ID:nLDE69L0KA]

In dollar terms, costs at Russia’s No. 3 oil company, half
owned by the British-based major, rose 18 percent, it said on
Tuesday. Transportation tariffs — mainly the cost of shipping
oil through the Transneft (TRNF_p.RTS: ) state pipeline system —
rose 19 percent, it said.

Forex effects amounted to $200 million, TNK-BP said.

The Russian oil company, which agreed to buy BP’s Venezuelan
and Vietnamese assets for $1.8 billion as the British major
raises funds to pay for a catastrophic oil spill in the Gulf of
Mexico, is also at an “initial point” in talks for its Algerian
assets, chief financial officer Jonathan Muir said in a
briefing.
Muir also said Indian oil company ONGC (ONGC.BO: ) had right
of first refusal on BP’s Vietnam assets and had about six weeks
to exercise them.

Aside from acquisitions, Muir said, TNK-BP cut its plans for
capital expenditure to $4 billion from a planned $4.4 billion.
It plans to keep capex steady around $4 billion in coming years.
(Reporting by Vladimir Soldatkin; writing by Melissa Akin;
editing by Will Waterman)

UPDATE 1-TNK-BP Q3 profits slide on higher costs