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Lukoil Profit Falls 20%

25 November 2011 12:24 (UTC +04:00)

Baku â€“ APA-Economics. Russia’s biggest closely held oil producer OAO Lukoil Holdings Friday said net profit for the third quarter dropped 20%, as it wrote down the costs of drilling dry holes and made extra tax payments on currency gains, Wall Street Journal reported.

Lukoil said net profit for the period under fell to $2.24 billion, compared with $2.82 billion a year earlier and below analysts’ forecast of $3.18 billion.

Revenue increased 30% to $34.56 billion from $26.52 billion, driven by higher oil prices, while earnings before interest, taxation, depreciation and amortization rose to $4.63 billion from $4.55 billion.

Lukoil’s overall production fell 5.3% from a year earlier to 2.11 million barrels of oil equivalent a day.

Lukoil shares rose after the results, increasing 2.1% at 1599.30 rubles in Moscow.

The company will host a conference call later Friday, and investors will listen for guidance on the company’s plans to stabilize production decline, capital-expenditure plans and details on projects in Iraq and Ghana.