By Olga Razumovskaya
MOSCOW--Russia's second-biggest oil producer, Lukoil Holdings,
said Tuesday that 2014 net profit fell almost 40% to $4.7 billion
as it battles plunging oil prices, a weak ruble and spiking
inflation.
The company said earnings were hit by asset write-downs at its
upstream and downstream businesses, despite full-year revenue
rising by 1.9% to $144.2 billion.
Earnings before interest, taxes, depreciation and amortization,
or Ebitda, slipped by 4.1% to $16 billion. The potential decline
was offset partly by cost compensation at Lukoil's West Qurna-2
project in Iraq.
Its hydrocarbon production jumped 4.8% on the year to 2.31
million barrels of oil equivalent. Crude oil production in Russia
crept upward to 1.99 million barrels of oil equivalent, despite a
fall in output at its main fields in western Siberia, where the
company has long battled to stem declines.
The company didn't give fourth-quarter figures.
Its revenue for the first nine months of 2014 was $112.9
billion, generating net profit for the period of $5.77 billion.
Lukoil said it was taking into account and monitoring the impact
of sanctions imposed on some Russian companies over the country's
annexation of Crimea.
Lukoil shares were up 1.52% in Moscow, slightly outperforming
the market.
Write to Olga Razumovskaya at olga.razumovskaya@wsj.com
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