Lukoil Swung to 1Q Loss on Demand Slump, Lower Prices
June 03 2020 - 7:57AM
Dow Jones News
By Adria Calatayud
Lukoil PJSC said Wednesday that it swung to a net loss for the
first quarter, hit by weaker economic activity, an unprecedented
slump in hydrocarbon demand and lower prices, and warned that these
trends persist in the second quarter.
The Russian energy company said the main impact of the pandemic
on its results is a sharp decline in prices for oil and refined
products.
The company swung to a net loss of 46.0 billion Russian rubles
($667.8 million) for the first quarter compared with a profit of
RUB149.2 billion in the year-earlier period. Sales for the quarter
fell to RUB1.666 trillion from RUB1.851 trillion in the same period
of 2019.
Lukoil said that since May 1 it has cut oil production at its
fields in Russia and some international projects due to the new
OPEC+ agreement signed in April.
In the first five months of the year, Lukoil's gas production in
Uzbekistan was reduced due to lower demand from China, while the
company cut refinery throughput volumes due to lower refining
margins on lower demand for refined products, it said. Volumes of
motor fuels through the company's filling stations were also lower,
Lukoil said.
Write to Adria Calatayud at adria.calatayud@dowjones.com
(END) Dow Jones Newswires
June 03, 2020 07:42 ET (11:42 GMT)
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