Lukoil Profit Dented by Falling Prices, Ruble

By James Marson

MOSCOW--PAO Lukoil (LKOH.MZ), Russia's No. 2 oil producer, said net profit fell by nearly one-tenth in the second quarter compared with the same period in 2015, owing to lower hydrocarbon prices and fluctuations in the ruble exchange rate against the dollar.

Net profit was down 9.3% at 62.6 billion rubles ($977 million), Lukoil said Monday. Revenue was down 9.3% at 1.34 trillion rubles, while earnings before interest, taxes, depreciation and amortization were off 8.3% at 190 billion rubles.

Hydrocarbon output slid 9% to 2.16 million barrels of oil equivalent a day, with crude oil and liquids production down 11% at 167 million barrels. Lukoil said it had reallocated spending from its aging, Soviet-era fields in Western Siberia to other projects that benefit from higher returns, in particular those with tax breaks. Crude production also fell as Lukoil received smaller volumes of compensation for initial costs in the West Qurna-2 project in Iraq.

-Write to James Marson at james.marson@wsj.com

(END) Dow Jones Newswires

August 29, 2016 09:43 ET (13:43 GMT)

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