OREANDA-NEWS. March 24, 2010. The Company’s net income before one-off impairment losses (including impairment loss for Anaran project in Iran, which was abandoned due to international sanctions) reached USD 7,352 million. The Company’s net income in 2009 was USD 7,011 million, 23.3% lower than in 2008. EBITDA in 2009 was USD 13,475 million, which is only 14.7% lower than in 2008. Revenues from sales were USD 81,083 million. Free cash flow was USD 2,360 million in 2009. The change in Company’s financial results is significantly better than the change in Urals price, which decreased by 35.5% y-o-y.

The Company’s tax expenses totalled USD 21.5 billion in 2009, including income tax expense of USD 2.0 billion.

Lifting costs per boe of production in 2009 decreased by 14% y-o-y, to USD 3.56 from USD 4.12 in 2008.

Capital expenditures including non-cash transactions in 2009 were USD 6.5 billion which is 38% lower y-o-y. Reduction of capital expenditures was in line with the anti-crisis program developed by the Company in the beginning of the year.

LUKOIL Group total hydrocarbon production available for sale reached 2,212 th. boe per day in 2009, which is a 0.8% increase y-o-y. Crude oil production by LUKOIL Group increased by 2.7% y-o-y to 1,972 th. barrels per day.

Crude oil production of LUKOIL Group in 2009 totalled 97.62 mln tons. Crude oil output from the Yuzhnaya Khylchuya field in Timan-Pechora, brought into production in the third quarter of 2008, reached 7 mln tons. Natural and petroleum gas output of LUKOIL Group available for sale decreased by 12.5% to 14.90 bcm: output as part of international projects totalled 4.24 bcm, output in Russia was 10.66 bcm.

Throughputs at the Company’s refineries (including its share in oil and petroleum product throughput at the ISAB and TRN refining complexes) increased by 11.4% y-o-y in 2009 and reached 62.70 mln tons. Throughputs at the Company’s refineries in Russia increased by 0.6% y-o-y, throughputs at the Company’s international refineries grew by 50.8% y-o-y.

Crude oil exports in 2009 increased by 6.9% to 42.0 million tons (844 th. barrels per day), thanks mainly to increased exports from the Yuzhnaya Khylchuya field through Varandey oil terminal. Exports of petroleum products grew by 7.7% y-o-y to 27.8 million tons. LUKOIL sold 150.7 million tons of crude oil and petroleum products, which is 11.9% higher y-o-y.

LUKOIL copes with the difficult macroeconomic situation and secures positive free cash flow thanks to implementing measures aimed at higher efficiency which were developed in the beginning of the year.

CONSOLIDATED STATEMENT OF INCOME

(Millions of US dollars, unless otherwise noted)

 

2009

2008

2007

Revenues

 

 

 

Sales (including excise and export tariffs)

81,083

107,680

81,891

 

 

 

 

Costs and other deductions

 

 

 

Operating expenses

(7,124)

(8,126)

(6,172)

Cost of purchased crude oil, gas and products

(31,977)

(37,851)

(27,982)

Transportation expenses

(4,830)

(5,460)

(4,457)

Selling, general and administrative expenses

(3,306)

(3,860)

(3,207)

Depreciation, depletion and amortization

(3,937)

(2,958)

(2,172)

Taxes other than income taxes

(6,474)

(13,464)

(9,367)

Excise and export tariffs

(13,058)

(21,340)

(15,033)

Exploration expenses

(218)

(487)

(307)

Loss on disposals and impairments of assets

(381)

(425)

(123)

Income from operating activities

9,778

13,709

13,071

Interest expense

(667)

(391)

(333)

Interest and dividend income

134

163

135

Equity share in income of affiliates

351

375

347

Currency translation (loss) gain

(520)

(918)

35

Other non-operating expense

(13)

(244)

(240)

Income before income tax

9,063

12,694

13,015

Current income taxes

(1,922)

(4,167)

(3,410)

Deferred income taxes

(72)

700

(39)

Total income tax expense

(1,994)

(3,467)

(3,449)

Net income

7,069

9,227

9,566

Less: net income attributable to non-controlling interests

(58)

(83)

(55)