TIDMLKOD
RNS Number : 4004Z
PJSC LukOil
14 March 2017
PRESS-RELEASE
March 14, 2017
LUKOIL ANNOUNCES CONSOLIDATED 2016 IFRS RESULTS
PJSC LUKOIL today released its audited consolidated financial
statements for the full year of 2016 prepared in accordance with
the International Financial Reporting Standards (IFRS).
Financial Highlights
Q4 2016 Q3 2016 FY 2016 FY 2015
-------- --------- ---------------------------------- ------------ ------------
(RUB bln)
1,400.9 1,309.5 Sales 5,227.0 5,749.1
183.3 165.9 EBITDA 730.7 816.7
177.6 160.4 EBITDA net of West Qurna-2 691.3 679.5
Profit for the period
attributable to LUKOIL
46.6 54.8 shareholders 206.8 291.1
Profit for the period
attributable to LUKOIL
shareholders net of foreign
68.6 63.0 exchange effect 296.4 202.4
149.5 120.6 Capital expenditures 511.5 607.2
54.6 104.7 Free cash flow 255.1 248.3
-------- --------- ---------------------------------- ------------ ------------
Sales
In the fourth quarter of 2016 our sales increased to 1,400.9 bln
RUB, or by 7.0% compared to the third quarter of 2016 mainly driven
by higher crude oil prices. There was an increase in the share of
crude oil sales in total sales due to the production growth as well
as an increase in international trading volumes.
Our sales for 2016 decreased to 5,227.0 bln RUB, or by 9.1%
compared to 2015 primarily due to lower crude oil prices as well as
lower sales volumes of crude oil and petroleum products, which
decreased by 3.7%. Growth of international trading volumes led to
the significant increase in the share of crude oil in total sales.
Changes in the product slate mix at our refineries resulted in the
higher share of light product yield, which positively impacted the
dynamics of our sales in 2016.
EBITDA
In the fourth quarter of 2016, our EBITDA increased to 183.3 bln
RUB, or by 10.5% as compared to the third quarter of 2016 mainly
due to the higher realized prices, growth of high-margin volumes in
our overall production and crude oil export duty time lag effect,
which were partially offset by the inventory build-up.
Our 2016 EBITDA was 730.7 bln RUB, down 10.5% year-on-year
mainly because of lower volumes of compensation crude oil from West
Qurna-2 due to the reimbursement of larger amount of historical
costs in 2015. Net of this project our EBITDA increased by 1.7% and
amounted to 691.3 bln RUB.
EBITDA was positively impacted by a growth of high-margin
volumes in our overall production profile, higher refinery
throughput, substantial improvement in the refined product slate
and higher sales volumes via premium channels. These factors were
partially offset by an increase in the mineral oil extraction tax
base rate, higher transportation tariffs, a decline in refining
margins and deterioration of retail margin in Russia due to the
increase in excise taxes.
Profit for the year
In the fourth quarter of 2016, profit attributable to our
shareholders was 46.6 bln RUB, down 15.0% quarter-on-quarter. For
the full year 2016, profit decreased by 29.0% and amounted to 206.8
bln RUB.
A decrease in quarterly and annual figures was mainly due to
non-cash foreign exchange effect as a result of volatility in the
exchange rates. Net of this effect our profit increased by 8.9%
quarter-on-quarter and by 46.4% year-on-year. Significant
year-on-year increase resulted primarily from the substantial
amount of impairment losses recognized in 2015.
Capital expenditures
Capital expenditures were 149.5 bln RUB in the fourth quarter of
2016, up by 23.9% quarter-on-quarter due to the seasonal increase
of works in traditional regions as well as active development of
gas projects in Uzbekistan.
For the full year of 2016, capital expenditures amounted to
511.5 bln RUB, down 15.8% year-on-year driven by the completion of
a major upgrade program at our refineries and reduction of
investments into our international projects.
Free cash flow
In the fourth quarter of 2016, our free cash flow was 54.6 bln
RUB reaching 255.1 bln RUB for the full year, which is 2.7% higher
compared to 2015 level. Free cash flow was positively impacted by
reduction in capital expenditures and working capital release.
Operational Highlights
Q4 2016 Q3 2016 FY 2016 FY 2015
-------- -------- -------------------------------- -------- --------
Hydrocarbon production,
199.8 194.9 mln boe 805.8 868.3
195.8 188.3 excluding West Qurna-2 771.1 794.8
Liquid hydrocarbons, mln
169.6 167.0 barrels 686.3 749.2
165.6 160.4 excluding West Qurna-2 651.5 675.6
Gas available for sale,
5.1 4.7 bcm 20.3 20.3
Production of petroleum
16.3 16.3 products, mln t 63.1 61.8
-------- -------- -------------------------------- -------- --------
Liquid hydrocarbons
In the fourth quarter of 2016, we produced 169.6 mln barrels of
liquid hydrocarbons, up by 1.6% quarter-on-quarter. Production
dynamics was positively impacted by the launch of V. Filanovsky and
Pyakyakhinskoe fields.
In 2016, liquid hydrocarbon production was down 8.4% to 686.3
mln barrels (1,875 Kbpd). The decrease was mainly driven by lower
volumes of compensation crude oil from the West Qurna-2 project,
divestment of our share in Caspian Investment Resources Ltd. in
Kazakhstan in 2015, as well as natural production decline at our
brownfields in West Siberia. Apart from greenfields launches, our
production volumes were positively impacted by development of heave
crude oil projects in Timan-Pechora, production growth in Urals
region, as well as ramp-up in production drilling volumes in West
Siberia.
Gas available for sale
Our marketable gas production for the fourth quarter of 2016
increased to 5.1 billion cubic meters, or by 8.3% compared to the
third quarter 2016 mainly due to production growth in
Uzbekistan.
Gas production for the twelve months of 2016 remained
practically unchanged year-on-year at 20.3 billion cubic meters.
Development of gas projects in Kazakhstan, Azerbaijan and
Uzbekistan fully offset production decline in Russia.
Oil products
In the fourth quarter of 2016, output of petroleum products was
flat quarter-on-quarter and amounted to 16.3 mln tonnes. The
negative output dynamics in Russia was driven by planned
maintenance works at Volgograd refinery and was fully offset by
higher international output.
For the full year 2016, production was up 2.1% year-on-year. The
positive dynamics was mainly attributable to the increase in
utilization rate at our refineries in Italy and Romania, while the
output volume at our Russian refineries remained at 2015 level.
2016 saw a significant improvement in product slate due to
commissioning of the new conversion facilities at our refineries.
Refining depth at our refineries in Russia increased by 5
percentage points to 85%, light product yield rose by 4 percentage
points to 63%. We also undertook measures on optimizing capacity
utilization at our Russian refineries, including the increase in
cross-supplies of dark oil products, which had a positive impact on
the overall efficiency of our refining business.
http://www.rns-pdf.londonstockexchange.com/rns/4004Z_-2017-3-14.pdf
http://www.rns-pdf.londonstockexchange.com/rns/4004Z_1-2017-3-14.pdf
http://www.rns-pdf.londonstockexchange.com/rns/4004Z_2-2017-3-14.pdf
For reference:
The full set of audited consolidated IFRS financial statements
for the year ended 31 December 2016 and the related notes as well
as Management's Discussion and Analysis of Financial Condition and
Results of Operations are available on the Company's websites:
www.lukoil.com and www.lukoil.ru.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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