17 May 2010 14:19

Lukoil RAS sales revenue plummets 93% in Q1

MOSCOW. May 17 (Interfax) - Sales revenue at Russian oil giant Lukoil came to 8.582 billion rubles in the first quarter per Russian Accounting Standards (RAS), a drop of 93% year-on-year, the company's quarterly report says.

Production costs dropped from 91 billion rubles in Q1 2009 to 3.299 billion rubles, while pretax profits contracted 63% to 6.856 billion rubles.

Lukoil's Q1 net profit halved to 7.159 billion rubles.

The company's 2009 sales revenues came to 536.7 billion rubles, 17% down from 2008, production costs were 429.16 billion rubles (17% down also), pretax profits were 53.962 billion rubles (38% down). Net profits amounted to 45.148 billion rubles in 2009, down 33%.

The bulk of oil sales and exports of petroleum products made by Lukoil's Russian enterprises took place in 2004-2006 centralized through OJSC Lukoil. The company transferred the functions of petroleum product exports to oil production enterprises, which led to a slight decrease in sales revenue starting from 2007.

Since January 1, 2010, Lukoil has exports oil only through commission agreements. In addition, the company does not engage in oil sales on the domestic major. This function was entirely transferred to Lukoil's oil production enterprises. As a result, sales revenue decreased substantially.