TIDMLKOD
RNS Number : 5131V
PJSC LukOil
07 August 2020
LUKOIL REPORTS PRELIMINARY OPERATING DATA FOR THE SECOND QUARTER
AND SIX MONTHS OF 2020
For the six months of 2020 LUKOIL Group's average hydrocarbon
production excluding the West Qurna-2 project was 2,155 thousand
boe per day, which is 8.4% lower year-on-year as a result of a
significant production cut in the second quarter of 2020. The cut
was due to the new OPEC+ agreement and a decrease in gas supply
from Uzbekistan to China, that were driven by a negative impact of
the COVID-19 pandemic on hydrocarbon demand.
Hydrocarbon production, thousand boe per day
2Q 2020 1Q 2020 6M 2020 6M 2019
-------- -------- ---------------------------------- -------- --------
Total (excluding the West Qurna-2
1,981 2,328 project) 2,155 2,352
-------- -------- ---------------------------------- -------- --------
Oil production excluding the West Qurna-2 project was 40.2
million tonnes for the six months of 2020, which is 5.6% lower
year-on-year due to a 12% production cut in the second quarter of
2020 compared to the first quarter. The cut was due to the new
OPEC+ agreement concluded in April 2020, that led to limitations on
oil production by the Group in Russia and at some international
projects.
Oil production, thousand tonnes
2Q 2020 1Q 2020 6M 2020 6M 2019
-------- -------- --------------------------------------- -------- --------
Total (excluding the West Qurna-2
18,815 21,384 project) 40,199 42,598
17,877 20,365 Russia 38,242 40,787
17,758 20,227 Subsidiaries 37,985 40,481
119 138 Share in affiliates 257 306
938 1,019 Outside of Russia 1,957 1,811
565 588 Subsidiaries 1,153 960
373 431 Share in affiliates 804 851
Compensation oil from the West Qurna-2
1,065 721 project 1,786 775
19,880 22,105 Total 41,985 43,373
-------- -------- --------------------------------------- -------- --------
Despite a sharp decrease in oil prices and external limitations
on production volumes, active development of the priority projects
continued. In particular, in West Siberia overall oil and gas
condensate production at the V. Vinogradov, Imilorskoye,
Sredne-Nazymskoye and Pyakyakhinskoye fields increased for the six
months of 2020 by 27% year-on-year and exceeded 2.0 million
tonnes.
Further development of the Yaregskoye field and Permian
reservoir of the Usinskoye field, including the launch of new
steam-generation facilities, allowed to increase high viscosity oil
production for the six months of 2020 by 4.5% year-on-year, to 2.5
million tonnes.
Implementation of drilling programs at the V. Filanovsky and Yu.
Korchagin fields in the Caspian Sea allowed to maintain production
at project levels. Total oil and gas condensate production at these
fields for the six months of 2020 was 3.7 million tonnes, flat
year-on-year.
The share of the abovementioned projects in the LUKOIL Group's
oil production excluding the West Qurna-2 project amounted to 20%
for the six months of 2020 as compared to 18% for the six months of
2019.
Gas production, million cubic meters
2Q 2020 1Q 2020 6M 2020 6M 2019
-------- -------- ----------------------------------- -------- --------
6,396 8,412 Total 14,808 17,352
4,305 4,665 Russia 8,970 8,856
4,284 4,643 Subsidiaries 8,927 8,812
21 22 Share in affiliates 43 44
2,091 3,747 Outside of Russia 5,838 8,496
1,933 3,581 Subsidiaries 5,514 8,172
158 166 Share in affiliates 324 324
-------- -------- ----------------------------------- -------- --------
For the six months of 2020, LUKOIL Group's gas production was
14.8 billion cubic meters, which is 14.7% lower year-on-year. The
decline was due to lower demand from China for gas produced in
Uzbekistan amid the COVID-19 pandemic. At the same time gas
production in Russia increased by 1.3% year-on-year driven by the
launch of the second stage of the booster compressor station at the
Nakhodkinskoye field in December 2019.
Refinery throughput, thousand tonnes
2Q 2020 1Q 2020 6M 2020 6M 2019
-------- -------- ------------------------------------------- -------- --------
13,525 17,090 Total for LUKOIL Group refineries 30,615 33,491
9,283 10,937 Russia 20,220 21,716
4,242 6,153 Outside of Russia 10,395 11,775
3,998 5,590 Oil processing 9,588 10,778
244 563 Refined products processing 807 997
24 53 Third party refineries abroad 77 3,231
-------- -------- ------------------------------------------- -------- --------
For the six months of 2020 refinery throughput at LUKOIL Group's
refineries was 30.6 million tonnes, which is 8.6% lower
year-on-year. The decline was due to scheduled maintenance works
and throughput optimization at some of the Company's refineries in
the second quarter of 2020 on the back of lower demand for
petroleum products and decline in refining margins due to the
COVID-19 pandemic.
Refinery throughput in Russia for the six months of 2020
decreased by 6.9% due to scheduled maintenance works and throughput
optimization at the Nizhny Novgorod and Ukhta refineries in the
second quarter of 2020. At the same time, throughput at the Perm
and Volgograd refineries remained unchanged compared to the first
quarter of 2020. Refinery throughput in Europe for the six months
of 2020 decreased by 11.7% due to scheduled maintenance works at
refineries in Bulgaria and the Netherlands, as well as throughput
optimization at European refineries in the second quarter of
2020.
Note:
LUKOIL will release its Condensed Interim Consolidated Financial
Statements prepared in accordance with IFRS and MD&A for the
second quarter and six months of 2020 on August 27, 2020.
The information in this press release is an estimate of the
LUKOIL Group's results for the second quarter and six months of
2020 and therefore constitutes forward-looking statements. This
information is preliminary and based on information available at
the date of this document, and may be revised after statistical,
financial, tax and accounting statements become available. The
information on the LUKOIL Group's operational results in this press
release are subject to many external factors which may cause the
actual results to differ materially from those expressed or
forecasted in this press release for the second quarter and six
months of 2020. The LUKOIL Group assumes no obligation to update or
alter its forward-looking statements, whether as a result of new
information, subsequent events or otherwise, except to the extent
required by applicable law.
This document does not constitute or form part of an invitation
or inducement to engage in investment activity with, or any offer
or invitation to sell or issue, or any solicitation of any offer to
purchase or subscribe for, any securities of, the LUKOIL Group, nor
shall any part of it nor the fact of its distribution form part of
or be relied on in connection with any contract or investment
decision relating thereto, nor does it constitute a recommendation
regarding the securities of, or any investment in, the LUKOIL
Group.
Information about the Company:
PJSC "LUKOIL" is one of the largest publicly traded, vertically
integrated oil and gas companies in the world in terms of proved
hydrocarbon reserves and production; and the second largest
producer of crude oil in Russia. Established in 1991, the Company
currently operates in more than 30 countries with core upstream
assets located in Russia. The full production cycle includes oil
and gas exploration, production and refining; production of
petrochemicals and lubricants; power generation; marketing and
distribution. The Company's shares are listed in Russia on Moscow
Exchange under the ticker "LKOH" and depositary receipts are listed
on the London Stock Exchange under the ticker "LKOD".
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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