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Lukoil boosts Q1 result on higher oil prices and sale volumes

The net income has increased by 45.5 % .

Lukoil boosts Q1 result on higher oil prices and sale volumes

Lukoil´s net income has increased by 45.5 % compared to the same period last year, the company reported on May 30, 2017.

This increase was attributed to the growth of high-margin volumes and cost-cutting measures,which were offset by the appreciation of the rouble and higher taxes.

Lukoil’s profit rose to $1.1 billion, which represented a 33.7 % increase from the 4rth quarter of 2016.

The company´s Q4 2016 profit was $824 million, around 15 % lower compared to the 3rd quarter.

The 4rth-quarter profit decline compared to the 3rd quarter was the result of volatility in the exchange rates, the company said in March.

In Q1 2017, Lukoil’s sales rose by 2.2 % on the quarter and 21.6 % on the year, to $25.3 billion.

The yearly increase in sales was mostly attributed to the higher sales prices, as well as higher sales volumes of crude oil and refined products internationally resulting from the increase in trading volumes, said Lukoil.

Earnings before interest, tax, depreciation, and amortization (EBITDA) rose by 13.3 % sequentially and by 8.2 % annually, to $3.67 billion .

The higher EBITDA in Q1 2017 was the result of growth of high-margin volumes in overall production, improvement in the refined product slate at refineries, and lowered selling, general, and administrative expenses.

The ruble appreciation, higher excise taxes on refined products, and higher transportation tariffs partially offset the EBITDA result, Lukoil said.

Capital expenditures dropped by 6.8 % on the quarter and rose 3.5 % year-on-year.

Lukoil’s free cash flow before changes in working capital was $1.187 billion, up 16.8 % on the year and up 74.8 % quarter-on-quarter.

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