Lukoil, which is engaged in the production of various oil-based products, has reported a net income of $2.5 billion in the second quarter of 2007, an increase of 8.4% compared to the same period in 2006.
Net income in the first half of 2007 was $3.8 billion, while EBITDA stood at $6.3 billion. Revenue from sales amounted to $35.8 billion, which is 7.7% higher compared to the previous year. Despite being impacted by the decrease in oil prices and tax rates, the company’s tax expenses in the first half of 2007 grew by 6.6% compared to the previous year, to $12 billion due to an increase in export volumes and retail sales of petroleum products.
Meanwhile, operating expenses rose by $681 million from the previous year. This growth was mainly caused by real appreciation of the ruble against the dollar, amendments to the Russian excise regulating legislation and increase in production and refinery throughputs. Crude oil output increased by 4.1% compared to the previous year, to 358.5 million barrels. Production of marketable gas was 7,030 million cubic meters, 6.1% higher compared to the previous year.
Lukoil sold 65.4 million tons of crude oil and petroleum products in the first half of 2007, representing an increase of 4.9% compared to the previous year. The rise in sales was driven by an increase in sales to far-abroad countries while sales to near-abroad countries and domestic sales decreased. Petroleum product sales were 43.3 million tons, which represents an increase of 4.9% compared to the previous year. Retail sales of petroleum products in Russia increased 17.8% from Q2 2006, while wholesale product sales decreased.