Lukoil, Russia’s second-largest oil producer, saw profit slump by 59% in the first quarter as oil prices declined to a 12-year low.
Net income fell to 42.8 billion rubles ($651 million) from 104 billion rubles a year earlier, the Moscow-based company said as it published its interim results for the first three months of 2016.
“Our results for the first quarter of 2016 were affected by a decrease in average hydrocarbon prices and fluctuations of ruble exchange rates to the US dollar and euro,” the company said in statement.
Russian producers have been partially buffered against the rout in crude by a weaker ruble, which has reduced costs, and taxes that decline with lower prices. While higher output helped smaller rivals Bashneft and Gazprom Neft boost profit in the first quarter, Lukoil’s production in Russia has dropped.
Oil and gas output fell to 2.35 million barrels of oil and gas a day, according to the statement. Revenue fell to 1.18 trillion rubles. Free cash flow was 36 billion rubles compared with 63 billion a year earlier, the company added.
Earnings before interest, taxes, depreciation and amortization fell to 145 billion rubles, missing the 158 billion-ruble estimate of seven analysts.
Recommended for you
