• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 1 min GREEN NEW DEAL = BLIZZARD OF LIES
  • 6 days Does Toyota Know Something That We Don’t?
  • 6 days World could get rid of Putin and Russia but nobody is bold enough
  • 2 days America should go after China but it should be done in a wise way.
  • 8 days China is using Chinese Names of Cities on their Border with Russia.
  • 9 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 9 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 9 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 8 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 9 days Putin and Xi Bet on the Global South
  • 9 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 10 days United States LNG Exports Reach Third Place
  • 10 days Biden's $2 trillion Plan for Insfrastructure and Jobs

Russia’s Lukoil Reports Q4 Decline In Profits

Lukoil, Russia’s second-biggest oil producer, reported on Tuesday a profit of $792 million (46.6 billion rubles) for the fourth quarter—slightly higher than analyst expectations, but 15 percent lower compared to the third quarter.

A Reuters poll of analysts had expected Lukoil to book $765 million (45 billion rubles) for the last quarter of 2016, compared to a loss of $1.1 billion (65 billion rubles) reported for Q4 2015.

The fourth-quarter profit decline compared to the third quarter was the result of volatility in the exchange rates, the company said in its statement.

Lukoil’s profit for the third quarter of 2016 had dropped 12.4 percent compared to the second quarter, as low oil prices and lower international trading volumes affected the company’s sales and EBITDA.

For the full year 2016, profit dropped by 29 percent to $3.515 billion (206.8 billion rubles).

Lukoil’s sales in the fourth quarter of 2016 went up by 7.0 percent compared to the third quarter, mostly driven by higher crude oil prices. The share of crude oil sales of total sales increased thanks to production growth and to higher international trading volumes, the Russian company noted.

Sales for the full-year 2016 dropped by 9.1 percent annually, on the back of lower crude oil prices during the whole year and decreased sales of crude oil and petroleum products, which fell 3.7 percent.

Related: U.S. Shale Faces A Workforce Shortage

Fourth-quarter EBITDA rose 10.5 percent over the third quarter, due to higher realized prices, growth of high-margin volumes in overall production, and crude oil export duty time lag effect, which were partially offset by the inventory build-up. Full-year 2016 EBITDA, on the other hand, fell 10.5 percent from 2015, on the back of lower volumes of compensation crude oil from the West Qurna-2 project due to the reimbursement of larger amount of historical costs in 2015.

ADVERTISEMENT

Lukoil’s Q4 production was 169.6 million barrels of liquid hydrocarbons, up 1.6 percent on the quarter, while 2016 full-year output dropped 8.4 percent to 686.3 million barrels, mainly due to lower volumes of compensation crude oil from the West Qurna-2 project.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com: 



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News