Lukoil’s 2014 Net Income drops 30% to $7.1b

LUKOIL on March  3rd, published consolidated US GAAP financial statements for 2014.

The Company’s 2014 net income reached $4,746 million. EBITDA (earnings before interest, taxation, depreciation and amortization) reached $15,982 million in 2014. Sales revenues were $144,167 million (+1.9% y-o-y). The changes in ruble-nominated revenues were significantly affected by the ruble devaluation.

Net income in 2014 was negatively affected by $2,341 million non-cash losses due to asset impairment in Russia, Ukraine, Western Africa and Kazakhstan. Excluding the non-cash losses net income was $7,087 mln and EBITDA was $18,426 mln.

Free cash flow in 2014 amounted to $925 million. Capital expenditures were $15,391 million in 2014.

Hydrocarbon lifting costs in Russia decreased by 23% in the fourth quarter of 2014 and reached $4.30 per boe. In 2014, hydrocarbon lifting costs amounted to $5.74 per boe.

In 2014, LUKOIL Group total hydrocarbon production available for sale increased by 5.1% y-o-y and reached 2,314 thousand boe per day. Crude oil production of LUKOIL Group in 2014 increased 7.0% to 97.208 million tonnes.

Throughput at the Company’s own and affiliated refineries increased by 0.3% to 66.6 million tonnes. Throughput the Company’s refineries in Russia increased 0.1%.


On a separate press statement, Lukoil oil company indicated that it may leave almost all of its projects in West Africa as it has made no large discoveries there.

Leonid Fedun, the company’s vice president, as quoted by Interfax news agency said:  “Many of these projects need more studies, but I am rather pessimistic. No decisions have been made, but we have not made any big commercial discoveries,”

Lukoil, Russia’s second-largest oil producer, has the biggest foreign exposure among Russian energy companies. It was once betting on West Africa as a potential source of its future production growth. Lukoil’s biggest foreign project is West Qurna-2 in Iraq.

Source: Reuters and Lukoil Website

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