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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