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    Lukoil Q2 profits up on output gains

Summary

The company benefited from higher production, among a number of other factors.

by: Joseph Murphy

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Natural Gas & LNG News, Europe, Premium, Corporate, Exploration & Production, Financials, News By Country, Russia

Lukoil Q2 profits up on output gains

Russia’s largest independent oil and gas producer Lukoil has posted a second-quarter income of rubles 181.2bn ($2.75bn), up 8.3% yr/yr.

Ebitda came to rubles 332.2bn, up 12.5%, the company said in a report published August 28, while revenues climbed 3.4% to rubles 2.13 trillion.

Upstream, Lukoil attributed the earnings surge to higher oil production in Russia, higher gas production overseas, namely in Uzbekistan, higher oil margins in Russia, changes in taxation at certain licences and lower lifting costs. Downstream, the company benefited from increased refining throughput, expanded margins and an improved product slate. Ruble devaluation was also a factor.

Gas output totalled 8.4bn m3, up from 8.1bn m3 a year earlier. The bulk came from Uzbekistan, where Lukoil is developing the Kandym-Khauzak-Shady and Southwest Gissar projects.