Companies: SBE   

Russia-focused Sibir Energy has trebled annual pre-tax profits to £344 million and is bullish about prospects.

Sibir, with a market value of £3 billion the largest company on AIM, increased turnover nearly 70 per cent to £900 million last year and lifted oil production 80 per cent to 17.8 million barrels. The company, of which Russian tycoon Chalva Tchigirinsky holds more than 40 per cent, added 55,000 barrels of daily oil production capacity and has stepped up its exploration drilling programme.

Last year, the City of Moscow took an 18 per cent stake in Sibir, which now controls 134 petrol stations in the Moscow area. The company is still seeking restitution of losses suffered through the arbitrary dilution of its stake in the Sibneft Yugra joint venture by Chelsea boss Roman Abramovich’s Sibneft group and says preliminary pleadings will start in the High Court next Monday.

Chief executive Henry Cameron says Sibir is likely to achieve ahead of schedule the goal stated last September of doubling its size in 18 months. He adds that the company draws comfort from the ‘positive spirit and professionalism’ of negotiations with Russian oil giant Gazprom and from recent government announcements on oil tax cuts and economic growth.

At 779p, up 33p today, Sibir shares have nearly quadrupled from their low point three years ago and are 51 per cent up since Growth Company Investor last highlighted them in October. Partial profit-taking might be prudent, but they should have more mileage yet.

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Sibir Energy	AIM	£1895.13m	490.25p	-24.25p
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Other company articles:
Profits surge at Sibir			30/06/2008
Sibir targets Moscow motorists			05/10/2007
Betting on AIM’s £16bn first fifteen			15/05/2006
Robert Tyerman’s Exploration Insights			27/09/2005
Russian tax settlement for Sibir			01/09/2005