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Lukoil net income soars to $2.1bn

Moscow, August 31, 2013

Russia's No 2 oil producer, Lukoil, posted a doubling in second-quarter net income yesterday, just missing forecasts as a weaker rouble and higher-than-expected taxes dampened a rise in sales and the impact of an acquisition.

Lukoil said its second-quarter net income jumped to $2.1 billion, flattered by a weak performance in the same period last year when earnings were hit by a higher tax bill.

However, that missed analysts' average forecast of $2.25 billion.

Lukoil has been struggling with a decline in oil production at its depleted fields in the Western Siberia region, which account for more than a half of its resource base.

To stem the decrease, the company has bought into foreign assets, including Iraq's West Qurna-2 project.

In April, it also acquired Russia's Samara-Nafta oil producing company from Hess Corporation, boosting second-quarter results.

Rosneft, which is Russia's top oil company, last month reported a $1.1 billion second-quarter net profit on a margin of three per cent.

That compares with Lukoil's six per cent, according to Reuters calculations.

Lukoil said second-quarter sales rose eight per cent to $35 billion from $32.4 billion in the year-earlier period.

Earnings before interest, taxation, depreciation and amortisation rose 26 per cent to $4.36 billion, in line with expectations.-Reuters




Tags: Russia | Lukoil | Siberia |

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