TIDMLKOD
RNS Number : 4025D
PJSC LukOil
02 March 2022
Press release
March 2, 2022
LUKOIL RELEASES FINANCIAL RESULTS UNDER IFRS FOR 2021
PJSC LUKOIL today released its audited consolidated financial
statements for 2021 prepared in accordance with the International
Financial Reporting Standards (IFRS).
Financial highlights
4Q 3Q 12M 12M
2021 2021 2021 2020
-------- -------- ----------------------------------- -------- --------
(RUB bln)
2,768.0 2,588,7 Sales 9,435.1 5,639.4
395.0 355.2 EBITDA 1,404.4 687.1
Profit for the period attributable
233.8 192.5 to LUKOIL shareholders 773.4 15.2
127.3 94.3 Capital expenditures 433.0 495.4
190.1 227.7 Free cash flow 693.6 281.1
Free cash flow before changes in
244.2 233.5 working capital 877.5 189.4
-------- -------- ----------------------------------- -------- --------
COVID-19
Since the start of COVID-19 pandemic, LUKOIL has been
undertaking necessary measures to rule out the direct impact of the
pandemic on the Group's operating activity, prioritizing proper
protection of its employees, contractors personnel and clients, as
well as continuity of production processes.
The main impact on financial performance of the Group is related
to the volatility of oil and petroleum products prices and lower
production volumes in 2020.
Sales
In the fourth quarter of 2021, our sales amounted to RUB 2,768.0
bln, up 6.9% quarter-on-quarter. The growth was mainly attributable
to higher crude oil and refined products prices, and hydrocarbon
production and refined products trading volumes.
In 2021, our sales amounted to RUB 9,435.1 bln, up 67.3%
year-on-year mainly due to higher hydrocarbon prices, ruble
devaluation, higher hydrocarbon production volumes, as well as
higher refinery throughput and oil and refined products trading
volumes.
EBITDA
4Q 3Q 12M 12M
2021 2021 2021 2020
------ ------ --------------------------------------- -------- ------
(RUB bln)
395.0 355.2 EBITDA 1,404.4 687.1
296.5 245.0 Exploration and production 986.3 500.1
234.6 206.9 Russia 821.9 421.6
61.9 38.1 Outside Russia 164.4 78.5
114.4 125.8 Refining, marketing and distribution 487.3 243.3
111.2 107.9 Russia 370.7 180.7
3.2 17.9 Outside Russia 116.6 62.6
------ ------ --------------------------------------- -------- ------
In the fourth quarter of 2021, EBITDA increased by 11.2%
quarter-on-quarter to RUB 395.0 bln.
Besides higher oil prices, EBITDA of the Exploration and
production segment in Russia was positively affected by higher oil
production volumes due to the changes in external limitations under
the OPEC+ agreement, as well as higher positive time lag effect of
export duty and MET. Outside Russia, EBITDA dynamics was mainly
attributable to higher hydrocarbon prices and higher gas
production, as well as higher EBITDA of the West Qurna-2
project.
Higher EBITDA of the Refining, Marketing and Distribution
segment in Russia was driven by better results of oil refining and
power generation segments. Outside Russia EBITDA was lower due to
scheduled maintenance works at the refinery in Bulgaria, higher
fuel and energy cost, as well as lower trading margins and
seasonally lower retail segment results. The negative impact of
these factors was partially offset by the accounting specifics of
hedging operations in international trading and higher positive
inventory effect at the refineries.
EBITDA in 2021 more than doubled year-on-year mainly as a result
of higher hydrocarbon prices, ruble devaluation, positive inventory
effect at the refineries, higher throughput volumes and refining
margins, positive time lag effect of export duty and MET, as well
as higher oil production volumes in Russia and gas production
volumes outside Russia. EBITDA growth was constrained by
elimination of tax incentives for high-viscous crude oil and weaker
results of retail business in Russia.
Profit for the period
In the fourth quarter of 2021, profit attributable to PJSC
LUKOIL shareholders amounted to RUB 233.8 bln, which is 21.5%
higher quarter-on-quarter. As a result, in 2021 profit was up to
RUB 773.4 bln as compared to profit of RUB 15.2 bln in 2020.
Besides higher EBITDA, profit dynamics is attributable to non-cash
asset impairment loss and foreign exchange loss in 2020.
Free cash flow
In the fourth quarter of 2021, free cash flow amounted to RUB
190.1 bln, which is 16.5% lower quarter-on-quarter. The decline was
mainly attributable to working capital build-up and higher capital
expenditures in the fourth quarter of 2021.
In 2021, free cash flow increased to RUB 693.6 bln as compared
to RUB 281.1 bln in 2020. The growth is attributable to higher
operating margins and lower capital expenditures, while the growth
was constrained by working capital build-up.
Operating highlights
4Q 3Q 12M 12M
2021 2021 2021 2020
------ ------ --------------------------------- ------ ------
2,335 2,152 Hydrocarbon production, Kpd 2,197 2,117
2,299 2,132 excluding West Qurna-2 2,163 2,064
Liquid hydrocarbon production,
1,782 1,662 Kbpd 1,678 1,651
1,746 1,642 excluding West Qurna-2 1,644 1,598
8.7 7.7 Gas production, bln cubic meters 32.2 29.0
Production of refined products
14.8 16.5 at own refineries, mln tonnes 60.0 55.0
------ ------ --------------------------------- ------ ------
In 2021, LUKOIL Group's average hydrocarbon production excluding
the West Qurna-2 project was 2,163 thousand boe per day, which is
4.8% higher year-on-year, while in the fourth quarter of 2021
hydrocarbon production increased by 7.8% quarter-on-quarter. The
production growth was attributable to the dynamics of the external
limitations on oil production due to the OPEC+ agreement, as well
as higher gas production volumes.
Liquid hydrocarbons
In 2021, liquid hydrocarbon production excluding the West
Qurna-2 project was 1,644 thousand barrels per day, which is 2.9%
higher year-on-year. In the fourth quarter of 2021, liquid
hydrocarbons production was 1,746 thousand barrels per day, up by
6.3% quarter-on-quarter. Liquid hydrocarbons production dynamics
was driven by the OPEC+ agreement concluded in April 2020, which
led to limitations on oil production by the Group in Russia and at
certain international projects.
Despite the external limitations on crude oil production
volumes, development of the priority projects continued. In
particular, in West Siberia total oil and gas condensate production
for the nine months of 2021 at the V. Vinogradov, Imilorskoye,
Sredne-Nazymskoye and Pyakyakhinskoye fields increased by 8.1%
year-on-year, to 4.5 mln tonnes.
Gas
In 2021, gas production increased in average daily terms by
11.4% year-on-year, to 32.2 bln cubic meters. The growth was driven
by recovery of gas production in Uzbekistan after temporary decline
in 2020 due to lower demand from China for gas produced in
Uzbekistan amid the COVID-19 pandemic.
In the fourth quarter of 2021, gas production increased in
average daily terms by 12.9% quarter-on-quarter and amounted to 8.7
bln cubic meters. The increase was mainly attributable to higher
production in Uzbekistan.
Refined products
In 2021, production of refined products at LUKOIL Group's
refineries was 60.0 mln tonnes, which is 9.2% higher year-on-year.
The increase was attributable to higher refineries utilization
rates due to better market environment in 2021, as well as
scheduled maintenance works in 2020. In the fourth quarter of 2021,
production of refined products was 14.8 mln tonnes, which is 10.0%
lower quarter-on-quarter due to scheduled maintenance works at the
refineries outside Russia, as well as seasonal throughput
optimization in Russia.
http://www.rns-pdf.londonstockexchange.com/rns/4025D_1-2022-3-2.pdf
http://www.rns-pdf.londonstockexchange.com/rns/4025D_2-2022-3-2.pdf
http://www.rns-pdf.londonstockexchange.com/rns/4025D_3-2022-3-2.pdf
Note:
The full set of audited consolidated IFRS financial statements
of PJSC "LUKOIL" for the year ended 31 December 2021 and the
related notes as well as Management's Discussion and Analysis of
Financial Condition and Results of Operations are available on the
Company's websites: www.lukoil.com and www.lukoil.ru.
PJSC LUKOIL is one of the largest publicly traded, vertically
integrated oil and gas companies in the world in terms of proved
hydrocarbon reserves and production; and the second largest
producer of crude oil in Russia. Established in 1991, the Company
currently operates in more than 30 countries with core upstream
assets located in Russia. The full production cycle includes oil
and gas exploration, production and refining; production of
petrochemicals and lubricants; power generation; marketing and
distribution providing LUKOIL with maximum synergies from its
activities. The Company's shares are listed in Russia on Moscow
Exchange under the ticker "LKOH" and depositary receipts are listed
on the London Stock Exchange under the ticker "LKOD".
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END
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