MOSCOW, October 18 (RIA Novosti) - LUKoil [RTS: LKOH] said Wednesday its U.S. GAAP net profit had increased 54.8%, year-on-year, in January-June, to $4.01 billion.
The Russian oil company said in a news release that its earnings before interest, taxes, depreciation and amortization (EBITDA) grew 50.4%, to $6.46 billion, in the first half of the year against the same period in 2005. Sales revenues rose 38.1%, to $33.2 billion.
"The increase in net income was due to favourable market conditions, increase of hydrocarbon production and refinery throughputs, cost control, and refining margins growth," the company said.
LUKoil said the growth of net income was held back by the appreciation of the ruble against the dollar and the growth of the tax burden. The company's tax expenses totaled $11.3 billion, up 40.2% year-on-year.
Operating expenses rose by $705 million, year-on-year, to $2.2 billion. The main contributors to this growth were the real appreciation of the ruble against the dollar, which was 15.7% for the 12-month period ending June 30, 2006 (the effect of the appreciation exceeded $100 million); a considerable rise in operating expenses related to crude oil and petroleum product inventory originating within the LUKoil Group ($358 million); and an increase in hydrocarbon production costs, primarily due to the growth of production volumes ($225 million).
Crude oil output, including production by affiliates, increased 5.7%, year-on-year, to 344.4 million barrels (46.7 million tons). Average flow rate per well at LUKoil fields in Russia increased to 11.23 tons per day (82.3 bbl/d) or by 2.1%, year-on-year.
Production of marketable gas, including production by affiliates, was 6.6 billion cubic meters, which is 141.6% higher, year-on-year.
Russian refineries of the LUKoil Group increased petroleum product output by 8.0%, year-on-year. Production at the group's foreign refineries decreased 11.8% due to the closure of the Odessa Refinery for upgrading.
LUKoil sold 62.3 million tons of crude oil and petroleum products in the first half of 2006, representing an increase of 6.7%, year-on-year. Retail sales of petroleum products increased 8.3%, while revenues from retail sales grew by $1.2 billion (34.2%).
