Earnings before interest, taxes, depreciation and amortization (EBITDA) for the first quarter of 2008 was $4.84 billion, 99.3% higher year-on-year. During the same period, revenue from sales rose by 59.4%, to $24.95 billion.
The increase in net income is reportedly due to favorable market conditions, high refinery margin, increase in refinery throughputs as well as due to effective cost control. Net income growth has been held back by appreciation of the ruble against the dollar, increase in transportation tariffs and an increased tax burden. The company’s tax expenses totaled $8.7 billion, up 54.9% compared to the same period in 2007.
Production of marketable hydrocarbons including share in production by affiliates has decreased by 2.1% year-on-year, to 2.19 million barrels of oil equivalent boe (mboe) per day. Lukoil is expected to maintain positive hydrocarbon production forecast for 2008 due to the launch of the Yuzhnaya Khylchuya field in Timan-Pechora, Russia, in mid-July 2008.
Refinery throughputs at the group’s refineries grew by 9.8% to 13.32 million tons. Increase in refinery throughputs at Lukoil refineries in Russia was 8.9% and 14.2% at foreign refineries. The Volgograd refinery accounted for most of the growth. Due to an increase in capacity load and optimization of the operations, production of petroleum products at Lukoil-owned refineries increased by 9.1% year-on-year and totaled 12.46 million tons.
Lukoil sold 32.6 million tons of crude oil and petroleum products in the first quarter of 2008, representing an increase of 4% compared to the same period in 2007. The company reported decreased oil sales and considerably increased sales of petroleum products. Retail sales of petroleum products increased by 21.2%, year-on-year, to 3.2 million tons.
