LUKoil publishes financial statements for 2011
The Company’s 2011 net income rose by 15.0 % and reached $ 10,357 mm. EBITDA (earnings before interest, taxation, depreciation and amortization) rose by 15.9 % and reached $ 18,606 mm in 2011. Sales revenues were $ 133,650 mm. The positive dynamics of our financial results was mainly due to a sharp increase in hydrocarbon prices in 2011 compared with 2010.
Net income for the fourth quarter 2011 was negatively affected by $ 955 mm losses due to the write-off of assets caused by the revaluation of the Yuzhnoye Khylchuyu field reserves.
The Company’s strict financial discipline and cost control helped generate a record high free cash flow in 2011 compared with previous years. The free cash flow reached $ 7,240 mm in 2011 compared with $ 6,930 mm in 2010. The capital expenditures, including non-cash transactions, in 2011 were $ 8,492 mm, which is 24.1 % higher than in 2010. Hydrocarbon production costs per boe reached $ 4.71 in 2011, having increased by 14.3 % y-o-y, mainly due to the appreciation of the ruble against the dollar.
Commercial hydrocarbon production by LUKoil Group for 2011 amounted to 2,140 boe per day, which is 4.4 % below y-o-y.
In 2011, throughputs at the Company’s own and affiliated refineries (including its share in crude-oil and petroleum-product throughput at the ISAB and TRN refining complexes) decreased by 1.9 % y-o-y down to 64.92 mm tons.
Throughputs at the Company’s refineries in Russia increased by 0.1 % y-o-y, throughputs at the international refineries decreased by 6.3 % y-o-y.
The shutdown of the Odessa refinery as a result of unfavorable economic conditions mainly accounts for the decrease in international throughputs in 2011.
Measures aimed at higher efficiency and cost control allow the Company to generate a strong free cash flow and increase the net income.