The end of big profits. Lukoil showed a decrease in profits for 2016 by almost a third
Oil and gas giant Lukoil has prepared a report on net profit for the past year. The report reckons that the net profit (relating to the shareholders of the company) fell by 29% in 2016. In absolute figures, Lukoil’s profit for 2016 amounted to 206.794 billion rubles, which is 84.341 billion rubles less than in 2015.
Representatives of Lukoil explain the drop in profits solely by the exchange rate difference due to the volatility of the exchange rate. According to the experts of the oil and gas giant, the net profit without regard to the exchange rate difference increased by 8.9% compared to the previous reporting period.
The report also provides the information about the company’s total revenue for 2016. In connection with a significant drop in oil prices, revenue fell to 5.227 trillion rubles and amounted to 5.7491 trillion rubles. This is 9.1% less than in 2015.
The volumes of oil production also fell. The report highlights some facts related to the decrease in the production of liquid hydrocarbons by 8.4%. During the year, 686.3 million barrels of oil were extracted from the company’s oil rigs. The volume of the produced gas remained unchanged compared to 2015.
The material was prepared with the participation of Victor Kotov,
a leading analyst of the brokerage company VOSPARI.