Lukoil, Russia’s second largest oil producer, said third-quarter profit dropped 62% after crude prices fell amid the global supply glut.
Net income fell to $623 million in the third quarter compared to $1.62 billion the previous year, the Moscow-headquartered company said. Sales fell 40% to $23.4 billion.
Crude prices have fallen to about half the previous year’s level after OPEC reacted to a global supply glut by defending market share rather than cutting output.
Russian oil and gas producers Bashneft , Gazprom Neft and OAO Novatek also reported a decline in profit or a loss in this period.
Oil and gas production in the first nine months of the year rose 3.5% to 2.37 million barrels a day.
Oil and liquids output increased 3.9 percent to an average 2.05 million barrels a day, mainly due to growth in Iraq, Lukoil said.
In the nine months of 2015, production at the group refineries in Russia reached 29.8 million tons, and 15.5 million tons. at the Group refineries outside Russia (including Zeeland refinery).
During the 9 months of 2015, the volume of crude oil exports from Russia reached 25.8 million tons. The volume of refined products exports from Russia were 15.6 million tons.