Lukoil's Net Income Registers 48% Y-o-y Decrease on Depreciation, Currency Loss

Lukoil's net income for the first three quarters has fallen from 3,105 to 1,620 million dollars in the last 12 months, with higher revenues from sales not enough to offset the almost doubled costs related to depreciation, depletion and amortisation. 

Lukoil was also affected by currency loss and current income taxes that skyrocketed from 325 to 828 millions. 

‘EBITDA (earnings before interest, taxation, depreciation and amortization) in the nine months of 2014 increased by 5.9% to $15,475 million. The Company’s net income in the nine months of 2014 amounted to $5,742 million. Sales revenues were $112,907 million (+7.0% y-o-y)’ reads the note, giving space to some positive results. 

The company added that total hydrocarbon production available for sale increased by 4.6% y-o-y and reached 2,291 thousand boe per day. 

‘Crude oil and natural gas liquids production in the nine months of 2014 increased by 5.9% y-o-y to 1,975 thousand barrels per day.’

In September, an analyst told Natural Gas Europe that new American sanctions on Russia could have widespread consequences on Gazprom, Gazprom Neft, Lukoil, Surgutneftegas and Rosneft.