Lukoil Net Income Doubles In Q2 2013 To $2.1 Billion

August 30, 2013

LUKOIL has published consolidated US GAAP financial statements for the second quarter of 2013.

In the second quarter of 2013 the Company’s net income of $2,104 million increased 107% compared to the second quarter of 2012. EBITDA was $4,359 million, which is a 26% y-o-y increase. Sales revenue reached $35,053 million, which is a 8.2% y-o-y increase mainly due to an increase in trading operations.

Earnings per share in the second quarter of 2013 increased 108% y-o-y to $2.79. Net income per boe of hydrocarbon production increased 102% to $10.5. Therefore, the Company shows a high level of financial efficiency in the Russian oil industry.

LUKOIL strong financial position resulted in increasing of credit rating by Fitch to BBB, which is equivalent to the sovereign credit rating of the Russian Federation. High financial stability allowed the Company’s Board of  Directors to recommend 1H 2013 interim dividends in the amount of 50 rubles per share, which is a 25% y-o-y increase.

In the second quarter of 2013, LUKOIL Group total hydrocarbon production available for sale reached 199.5 million boe, which is a 2.3% increase y-o-y. Crude oil and natural gas liquids production of LUKOIL Group in the second quarter of 2013 increased 1.5% to 170.0 million barrels. Production of gas available for sale reached 5.02 bcm, which is a 7.1% increase. Lifting costs per boe of production in the second quarter of 2013 was $5.6.

Capital expenditures including non-cash transactions were $3,584 million. Free cash flow was $292 million in the second quarter of 2013.

In the second quarter of 2013 throughputs at the Company’s own and affiliated refineries increased 1.7% to 16,442 thousand tonnes. Output of refined products by the Group in Russia increased 4.7%.

Measures aimed at higher efficiency and cost control allowed the Company to maintain high operating efficiency.

Source: Lukoil, 2013.