OREANDA-NEWS. March 02, 2012. LUKOIL has published consolidated US GAAP financial statements for 2011.

The Company’s 2011 net income rose by 15.0% and reached USD 10,357 million. EBITDA (earnings before interest, taxation, depreciation and amortization) rose by 15.9% and reached USD 18,606 million in 2011. Sales revenues were USD 133,650 million (+27.3% y-o-y). The positive dynamics of our financial results was mainly due to a sharp increase in hydrocarbon prices in 2011 compared with 2010.

Net income for the fourth quarter 2011 was negatively affected by USD 955 million losses due to the write-off of assets caused by the revaluation of the Yuzhnoye Khylchuyu field reserves.

The Company’s strict financial discipline and cost control helped generate a record high free cash flow in 2011 compared with previous years. The free cash flow reached USD 7,240 million in 2011 compared with USD 6,930 million in 2010. The capital expenditures, including non-cash transactions, in 2011 were USD 8,492 million, which is 24.1% higher than in 2010.

Hydrocarbon production costs per boe reached USD 4.71 in 2011, having increased by 14.3% y-o-y, mainly due to the appreciation of the ruble against the US dollar.

Commercial hydrocarbon production by LUKOIL Group for 2011 amounted to 2,140 thousand boe per day, which is 4.4% below y-o-y.

In 2011, throughputs at the Company’s own and affiliated refineries (including its share in crude-oil and petroleum-product throughput at the ISAB and TRN refining complexes) decreased by 1.9% y-o-y down to 64.92 million tons. Throughputs at the Company’s refineries in Russia increased by 0.1% y-o-y, throughputs at the international refineries decreased by 6.3% y-o-y. The shutdown of the Odessa refinery as a result of unfavorable economic conditions mainly accounts for the decrease in international throughputs in 2011.

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