Lukoil’s net profit of USD7.8 billion for the period of January-to-September 2013 turned out six percent lower compared to the same period of the previous year. In quarter three of 2013, the net profit of the company decreased by 11.4 percent to a level of USD3.1 billion.

The company’s quarter three profits increased 48 percent in relation to the corresponding quarter of the previous year. The EBITDA went up 26 percent to some USD5.5 billion. The revenue from sales increased to USD36.7 billion, driven up 4.8 percent by higher oil prices and broader commercial operations. The net-profit-per-share figure went up 48 percent to USD4.11. Lukoil’s net profit per one barrel was USD15.50, having risen some 47 percent in relation to the results of the previous quarter.

The company’s cash flow in the third quarter of the year went up from USD292 to USD1.6 billion. Capital expenditures reached USD3.8 billion in the period of months from July to September. The latter figure includes advance payments and non-monetary acquisitions.

In the first half of the current year, Lukoil paid dividends equal to RUR50 per share. The amount of this year’s interim dividend payment went up by a quarter compared to last year’s payment.

Lukoil’s debt in the third quarter stood at USD6 billion, a figure that reflects a decrease of USD200 million in relation to the corresponding statistic for the previous quarter. In addition, Lukoil issued Eurobonds in the first half of the year, which allowed the company to attract USD3 billion in new capital.

Lukoil increased oil production by 1.1 percent since last year, which translates to 2.191 million barrels of oil per day from January to September of 2013. The output of liquid hydrocarbons per day increased 0.8 percent. The cost per barrel of production stood at USD5.50 in the first nine months of 2013.

In line with the U.S. generally accepted accounting practices, Lukoil’s 1 total production in the first three quarters of the year was 67.7 million tons, a figure reflecting a 0.7-percent increase on a year-on-year basis. Specifically, production in Russia increased to 63.47 million tons, going up some 1.2 percent. A decrease in production to the tune of 1.9 percent took place in West Siberia, where total recovery was 36.2 million tons. The company attributed the decline to the depletion of reserves. While the volume of Western Siberian production declined 2.2 percent in the first half of the year, industry analysts have noted that the decrease is smaller than that seen in the previous reporting period.

Lukoil’s production within the Ti-man-Pechora region slowed down by approximately 394 thousand tons of oil equivalent. This decline in performance reflects a 3.4-percent reduction in Timan-Pechora’s production in relation to the same period of the previous year.

The company managed to compensate its decreasing production at Western Siberia and Timan- Pechora fields by acquiring Samara-Nafta and consolidating the control over the Kama-Oil company in the Perm region. Production growth for Lukoil took place predominantly within the Volga region and in the Urals. Altogether, production in those two areas rose 56 percent, yielding 4.1 million tons.

The volume of refining operations for Lukoil increased 1.9 percent to reach 49.6 million tons in the first three quarters of the year. The processing of the company’s oil at refineries within Russia rose 3.3 percent.

In the first three quarters, Lukoil exported from Russia 37.7 percent of the oil it extracted. Exports of oil plummeted 11.5 percent on a year-on-year basis as a result of increased domestic demand and more intense refining operations. On the other hand, the company’s exports of petroleum products went up by some 918 thousand tons. The increase in exports of refined products stood at 5.4 percent.

In the period of months from January to October, Lukoil tendered the second half of the USD835-million payment for securing subsurface rights to the Imilorskoye, the West-Imilorskoye, and the Istochnoye sites. The three oilfields are located in Western Siberia. The first half of the payment was made in December of 2012. Lukoil won the rights to develop the areas at an auction, where it competed against Rosneft and Gazprom Neft. Recoverable C1 reserves at the three deposits

were estimated in 2011 at 66.278 million tons, while C2 reserves were assessed at 127.404 million tons. Lukoil’s program for the Imilorskoye site provides for investing RUR28 billion to RUR32 billion until 2016. Active operations at the fields will start in September 2014, while oil production is expected to begin in March of 2015.

Lukoil’s investment in the Yamal Peninsula in the first three quarters was USD268 million. This year’s total is less than what the company had invested in 2012, when outlays for Yamal projects were USD402 million.

In regards to Lukoil’s investments outside of Russia, the company spent USD1.5 billion in Iraq during the first nine months of 2013. The figure represents a 140-percent increase in investment compared to last year’s data. In addition, Lukoil spent USD444 million in the country of Uzbekistan.

In Iraq, Lukoil is pursuing the development of the West Qurna-2 site, whose resources were assessed at 14 billion barrels. Lukoil’s share in the project is at 75 percent. The Iraqi state-owned North Oil Company has the remaining 25-percent stake in the venture. According to forecasts, West Qurna-2 will enter production as early as in 2014. The volume of production has been estimated at 60 million tons per year.

Lukoil’s decade-long investment scheme worked out relative to the West Qurna-2 site had to be adjusted after the Iraqi government recently amended its contract with the Russian company. Lukoil’s investment commitments were revised downward to USD26 billion from the figure of USD33 billion that was provided for under the original agreement. Lukoil’s contract is for a term of 25 years.