OREANDA-NEWS. November 29, 2011. LUKOIL has published consolidated US GAAP financial statements for the third quarter and 9 months of 2011.

The Company’s net income was USD 9,012 million in the 9 months of 2011, which is 32.1% higher y-o-y, including USD 2,244 million in the third quarter. EBITDA in the 9 months of 2011 was USD 15,316 million, which is 27.8% higher y-o-y. Sales revenues were USD 99,101 million (+29.9% y-o-y). Positive dynamics of our financial results was mainly due to an increase in hydrocarbon prices in the 9 months of 2011 compared to the same period of 2010.

Net income for the third quarter 2011 was negatively affected by losses in the amount near USD 570 million due to depreciation of Russian ruble, including near USD 340 million of tax on currency translation gain of Russian LUKOIL subsidiaries.

The Company’s strict financial discipline and efficient costs management helped to generate record high free cash flow in the 9 months of 2011 compared to the same period of previous years. Free cash flow reached USD 7,712 million in the 9 months of 2011 compared to USD 6,964 million in the 9 months of 2010. Capital expenditures including non-cash transactions in the 9 months of 2011 were USD 5.6 billion, which is 19.7% higher y-o-y.

In the 9 months of 2011, lifting costs per boe of production were USD 4.74, which is 17.3% higher y-o-y. The growth was mainly due to the real ruble appreciation by 14.6%.

In the 9 months of 2011, LUKOIL Group total hydrocarbon production available for sale reached 2,143 th. boe per day, which is a 4.7% decrease y-o-y.

In the 9 months of 2011 throughputs at the Company’s refineries (including its share in crude oil and petroleum product throughput at the ISAB and TRN refining complexes) decreased by 1.4% y-o-y and reached 48.72 mln tones. In the 9 months of 2011, throughputs at the Company’s refineries in Russia increased by 0.1% y-o-y, throughputs at the Company’s international refineries decreased by 4.8% y-o-y due to shutdown of the Odessa Refinery because of unfavorable economic conditions.

Measures aimed at higher efficiency and cost control allowed the Company to generate strong free cash flow and increase net income.