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Lukoil posts 1H 2010 net profit of $4 billion

Published: 31 August, 2010, 11:49
Edited: 01 September, 2010, 12:28

RIA Novosti / Igor Zarembo, STF

RIA Novosti / Igor Zarembo, STF

TAGS: Manufacturing, Oil, Corporate Results, Gas


Russian oil producer Lukoil has posted a 1H 2010 net profit of $4 billion under US GAAP.

The bottom line is up 24% year on year from 3.2 billion, with EBITDA up to $7.4 billion year on year from $6.5 billion, on the back of revenues from sales climbed year on year to $49.7 billion from $34.8 billion

The company attributes the net result to a sharp 1.9% rise year on year of hydrocarbon production, including a 25.5% increase of gas production along with the Group crude oil and petroleum product sales increased by 2.7% year on year and amounted to 76.8 million tons in 1H 2010.

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Count Cash August 31, 2010, 20:19
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Hydrocarbons and other natural resources are our core business and we must not forget about them. We must cast our eyes very heavily over them in terms of governance, including their operation and financial positions. We have to make sure that they are absolutely sound businesses and not take our eyes off them, or be distracted by the promises of diversification, technology.... these are all possibilities, wheras our natural resource buiness is a reality with phenominal strategic value. We can live with further diversification failures based on it, but we will collapse immediately without it, until the possibilities become realities in other economic areas. So EBITDA data, well that's all well and good, but what about absolute net profit after the taxes..., is that up? I am not saying it should be, as we need tax revenues, or that anything is wrong with the operation, current planning, finances, future palnning.... But what I am saying, is that this is a critical, strategic sector for Russia, so some of our brightest minds and thinkers should be watching over it, to make sure it is all kept on a sound business and financial footing. We get one chance with the revenues from hydrocarbons, so we need be sure we make the best we can of it. remembering that others outside, are continually manoevering to weaken our natural birthright, trying to deny us the finacial springboard to a brighter Russia. It is the role of our government, to make sure these external influences fail, and also that we do not fail ourselves through distraction or otherwise taking our eye off the ball. Focus on the plates we have spinning, whilst we start other ones up, otherwise everything could come crashing down!