NOT FOR PUBLIC DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR THE RUSSIAN FEDERATION. _______________ This Financial Statement Release replaces the previous published version. Included in this version are legal restrictions regarding the Financial Statement Release. No other change has been done to the Financial Statement Release. _______________ Year ended 31 December 2009 * Total revenue amounted to MUSD 1,726.4 (MUSD 2,721.6). * EBITDA amounted to MUSD 387.9 (MUSD 585.0). * The result for the financial year increased to MUSD 345.0 (MUSD 46.0). * The result before tax for the quarter and the financial year was positively affected by a MUSD 174.7 partial reversal of last year's non-cash impairment of upstream assets resulting from an updated appraisal of oil reserves and economic conditions. * Earnings per share amounted to USD 2.06 (USD 0.28) per share for the financial year. * Proved and probable oil reserves increased to 525.9 mbbl (487.3 mbbl). * 21.8 mbbl (24.6 mbbl) were refined and 16.0 mbbl (17.4 mbbl) produced for the financial year. Quarter ended 31 December 2009 * Total revenue amounted to MUSD 544.7 (MUSD 409.6). * EBITDA increased to MUSD 90.2 (MUSD 6.2). * The result for the quarter increased to MUSD 188.3 (loss of MUSD 290.9). * Earnings per share amounted to USD 1.09 (loss of USD 1.81) per share for the quarter. * 5.6 mbbl (4.9 mbbl) of oil were refined and 3.9 mbbl (4.5 mbbl) produced for the quarter. 2010 Outlook Refining volumes targeted to average 57,500 barrels per day and crude production to reach 50,000 barrels per day to total 21 mbbl and 17 mbbl respectively in 2010. Dear Shareholders, In 2009 the viability and firmness of Alliance Oil Company, in the atmosphere of global uncertainty and instability, was tested. Our integrated business model proved its solidity and consistency as we managed to further improve our operations, strengthen the company's balance sheet, increase the reserve base and expand the retail network while achieving the highest result in the company's history. The company produced 16.0 million barrels of crude oil and refined 21.8 million barrels and fully achieved the budget for 2009. The upstream and the downstream segments' contributions to consolidated EBITDA have balanced. Last year, our operations were largely supported by recovering markets, both internationally and domestically. Crude oil prices started the year close to USD 40 per barrel and gradually improved to USD 70-80 per barrel by year end. Domestic demand for oil products continued to recover with significant increases in the second and third quarters. In the upstream segment, the company was able to demonstrate its flexibility in managing its operational and capital expenditures. We were able to limit our capital expenditures in the first half of the year reacting to the severe market conditions, and responded promptly by increasing our drilling activity as the environment subsequently changed for the better. With a strong focus on the organic development, the company's proved and probable reserves increased from the impressive exploration activity replacing 342 per cent of its annual 2009 production and bringing its 2P reserve base to 526 million barrels. Most of the growth was delivered by the Lek-Kharyaga field in the Timano-Pechora region. These reserve additions and the improved oil price environment allowed us to reverse impairment charges of USD 175 million from last year with a corresponding increase in the result before tax for the year and the fourth quarter. In December the company was awarded a 25 year exploration and production license for the Gusikhinsky license area in the Volga-Urals region with prospective resources of 68 mbbl supporting its exploration potential onwards. In the downstream segment, the company continued the modernization of the Khabarovsk oil refinery successfully launching a new water treatment unit and new premium class gasoline tanks. We have further expanded our retail network by acquiring a number of outlets in the Amur and Khabarovsk regions of the Russian Far East. The company operates a total of 261 retail stations and 16 wholesale terminals under its highly recognized Alliance Oil brand. In the fourth quarter 2009, our solid operating performance continued. We report further revenue growth compared to the third quarter. Upstream operational results further improved as crude netbacks increased. Downstream results were lower in the quarter as a typical lower seasonal demand affected volumes and economics late in the year. As we continue to proactively address our financial needs, the company has further improved its liquidity. Alliance Oil Company was one the first CIS issuers to successfully raise MUSD 390 through a convertible bond and equity placement in July 2009. In December, the Supervisory Board of the state owned Vnesheconombank approved the bank's participation in the modernization of the Khabarovsk refinery. We have also announced a proposed bond offering and recently received the first credit ratings in company history, B+ from S&P and B from Fitch. Outlook In December 2009, the board of directors approved the company's growth strategy through 2012. We have set ambitious targets both for the upstream and downstream segments. The company's general objective remains to be the-best-in-class independent integrated business focusing on efficient growth in both segments. In 2009, we established a solid operational and financial basis for reaching our ambitious targets in coming years. In the upstream sector, we target production growth to 50,000 barrels per day this year and to produce a total of 17 million barrels of crude oil. Our strategic priority is Timano-Pechora with allocation of significant resources to take advantage of improved potential at the most lucrative Kolvinskoye and Lek Kharyaga oil fields and benefit from the MET tax holidays through 2015. This region will be our main driver towards reaching the new upstream production target of 90,000 barrels per day in 2012. In the downstream sector, our agenda is to complete the modernization of the Khabarovsk refinery in 2012 securing better complexity, higher quality oil products, higher capacity and, as a result, better returns. The upgrade program is fully on track, and this year we expect significant progress in the modernization plan. For 2010, the company's refining plans remain unchanged at 21.0 million barrels. Arsen Idrisov Managing Director Conference call Date: Monday, February 22 Time: 10.00 CET To participate to the conference call please dial: from Sweden +46 (0)8 5051 3794, confirmation code 4375042 from Russia +7 495 705 9452, confirmation code 4375042 from other countries +44 (0)20 7806 1967, confirmation code 4375042. The press conference will be webcasted live at www.allianceoilco.com and www.financialhearings.com. The conference will be available at www.allianceoilco.com. For further information: Arsen Idrisov, Managing Director, Alliance Oil Company Ltd, telephone +7 (495) 777 18 08. Eric Forss, Chairman of the Board, telephone +46 8 613 00 85 or +46 705 23 86 62. Alliance Oil Company Ltd is a leading independent oil company with vertically integrated operations in Russia and Kazakhstan. Alliance Oil has proved and probable oil reserves of 526 million barrels, oil production of approximately 42,700 barrels per day, refining capacity of 70,000 barrels per day and a network of gas stations and wholesale oil products terminals. Alliance Oil's depository receipts are traded on the NASDAQ OMX Nordic under the symbol AOIL. This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of Alliance Oil Company Ltd. or any of its subsidiaries, nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute a recommendation regarding the securities of Alliance Oil Company Ltd. or any of its subsidiaries. This document is not for distribution, directly or indirectly, in or into the United States (including its territories and dependencies, any state of the United States and the District of Columbia), Australia, Canada, Japan or the Russian Federation. This document is not an offer for sale of any securities in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”). Alliance Oil Company Ltd. does not intend to register the securities or conduct a public offering in the United States. The Securities have not been, and will not be, registered under the Securities Act and subject to certain exceptions, may not be offered or sold within the United States. The Securities will be offered and sold only (A) outside the United States in compliance with Regulation S under the Securities Act (“Regulation S”); or (B) to U.S. Persons (within the meaning of Regulation S) who are “Qualified Institutional Buyers” (within the meaning of Rule 144A under the Securities Act (“Rule 144A”)) in reliance on the exemption from the registration requirements provided by Rule 144A. Any failure to comply with this restriction may constitute a violation of U.S. securities laws. This communication is being distributed to and is directed only at (i) persons who are outside the United Kingdom or (ii) persons who are investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) and (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2) (a) to (d) of the Order (all such persons together being referred to as “relevant persons”). Any investment activity to which this communication relates will only be available to and will only be engaged with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents. This document is an advertisement and not a prospectus for the purposes of applicable measures implementing EU Directive 2003/71/EC (such Directive, together with any applicable implementing measures in the relevant home Member State under such Directive, the “Prospectus Directive”) and as such does not constitute an offer to sell or the solicitation of an offer to purchase securities. A prospectus prepared pursuant to the Prospectus Directive will be published, which, when published, can be obtained from www.allianceoilco.com. Stabilisation/FSA. Information contained herein is not an offer, or an invitation to make offers, sell, purchase, exchange or transfer any securities in Russia or to or for the benefit of any Russian person, and does not constitute an advertisement or offering of the Notes in Russia within the meaning of Russian securities laws and must not be passed on to third parties or otherwise be made publicly available in Russia. The Notes have not been and will not be registered in Russia or admitted to public placement and/or public circulation in Russia. The Notes are not intended for “offering”, “placement” or “circulation” in Russia (each as defined in Russian securities laws). Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Alliance Oil Company Ltd. You can identify forward-looking statements by terms such as “expect,” “believe,” “anticipate,” “estimate,” “intend,” “will,” “could,” “may” or “might,” or the negative of such terms or other similar expressions. These statements are only predictions and actual events or results may differ materially. Alliance Oil Company Ltd. does not intend to or undertake any obligation to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in Alliance Oil Company Ltd's projections or forward-looking statements, including, among others, general economic and market conditions, Alliance Oil Company Ltd's competitive environment, risks associated with operating in Russia, rapid technological and market change, and other factors specifically related to Alliance Oil Company Ltd. and its operations.
CORRECTION: Report for the quarter and year ended December 31, 2009
| Source: Alliance Oil Company Ltd
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