LUKOIL publishes today consolidated US GAAP financial accounts for nine months of 2005.
LUKOIL net income for nine months of 2005 was $4,801 million, which is an increase of 55.1% y-o-y. At the same time total tax expenses exceeded $13 billion, which is almost 85% higher than in the same period of 2004. Taxes paid in Russia (including mineral extraction tax, tariffs, excise etc.) to the sales revenue of LUKOIL Russian subsidiaries for 9 months of 2005 was 50.3%.
The increase in net income resulted from favorable market conditions as well as from costs control. At the same time the growth of net income was restrained by an increase of tax burden, strengthening of the ruble against the dollar and rise in transportation costs.
EBITDA was $7,657 million, which is 46.7% higher than in the same period of 2004. Revenue from sales for nine months of 2005 was $40,238 million, which is 66.2% higher y-o-y.
Average lifting costs rose by 7.1% to $2.72 per barrel in comparison with nine months of 2004. However, the strengthening of the ruble against the dollar in real terms in the year that ended September 30, 2005 was 15.0%, which means that average lifting costs fell by almost 8% in real terms. LUKOIL managed to reduce average lifting costs in real terms thanks to a growth of average flow rate per well from 10.65 tons per day in nine months of 2004 up to 11.04 tons per day in nine months of 2005, or by 3.7%, and also thanks to the restructuring of production assets.
Total capital expenditures including non-cash transactions were $2,918 million in nine months of 2005, which is an increase of 26.8% y-o-y.
During nine months of 2005 the Company produced 66.9 million tons of crude oil, up 4.4%
y-o-y. Daily production growth reached 4.7%, with organic growth of 4.4%.
Petroleum product output in nine months of 2005 was 32.8 million tons, which is 7.7% higher than in the same period of 2004.
In nine months of 2005 LUKOIL subsidiaries exported 34.5 million tons of oil (including purchased oil) in comparison with 34.6 million tons in nine months of 2004. This slight decrease in export volumes is due to a growth of throughputs at LUKOIL Russian refineries and a reduction of domestic oil purchases.
During nine months of 2005 LUKOIL sold 91.0 million tons of crude oil and petroleum products, which is 11.2% higher than in nine months of 2004. The share of international sales (including CIS market) in total volume of sales was 82.9% compared to 80.6% in the same period of 2004.
Retail sales of petroleum products increased by 30.8% in volume terms y-o-y, while revenues from retail sales grew by 61.6%.
OAO LUKOIL
Consolidated Statements of Income
(Millions of US dollars, unless otherwise noted)
|
|
For the ninemonths ended September 30, 2005
(unaudited) |
For the nine months ended September 30, 2004
(unaudited) |
|
Sales (including excise and export tariffs) |
40,238 |
24,217 |
|
Equity share in income of affiliates |
336 |
214 |
|
Total revenues |
40,574 |
24,431 |
|
Operating expenses |
(2,376) |
(2,101) |
|
Cost of purchased crude oil, petroleum and chemical products |
(14,379) |
(7,335) |
|
Transportation expenses |
(2,522) |
(2,080) |
|
Selling, general and administrative expenses |
(1,820) |
(1,445) |
|
Depreciation, depletion and amortization |
(937) |
(806) |
|
Taxes other than income taxes |
(4,669) |
(2,515) |
|
Excise and export tariffs |
(6,778) |
(3,412) |
|
Exploration expense |
(244) |
(125) |
|
Gain (loss) on disposal and impairment of assets |
83 |
(168) |
|
Income from operating activities |
6,932 |
4,444 |
|
Interest expense |
(179) |
(220) |
|
Interest and dividend income |
63 |
145 |
|
Currency translation (loss) gain |
(96) |
12 |
|
Other non-operating (loss) gain |
(20) |
15 |
|
Minority interest |
(96) |
(57) |
|
Income before income taxes |
6,604 |
4,339 |
|
Current income taxes |
(1,766) |
(1,266) |
|
Deferred income taxes |
(37) |
22 |
|
Total income tax expense |
(1,803) |
(1,244) |
|
Net income |
4,801 |
3,095 |
|
Basic, dollar per share |
5.90 |
3.79 |
|
Diluted, dollar per share |
5.81 |
3.73 |
The full consolidated US GAAP financial accounts of LUKOIL for the third quarter and nine months of 2005 are available on the Company’s web sites: www.lukoil.ru and www.lukoil.com.
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