Lukoil's 2Q Profit Falls

Lukoil announced Friday that it posted a net income of $1.01 billion in the second quarter of 2015, which marked a decrease of over 50 percent compared to the $2.40 billion figure recorded in 2Q 2014.

The company’s EBITDA decreased by 32.4 percent year on year, in the first half of 2015, to $6.37 billion and revenues during the period were $51.29 billion, which marked a 30.6 percent year on year decrease. Daily hydrocarbon production in 1H 2015 was 2,373 barrels of oil equivalent, which was 4.8 percent higher than daily production during the first half of 2014.

In its latest financial results statement, Lukoil said that its 1H 2015 results “were affected by a sharp decrease in the hydrocarbon prices and non-cash write-off in the amount of $324 million”. The company also stated that the increase in crude oil and natural gas liquids produced by the group was mainly due to the start of commercial production from the West Qurna-2 project in Iraq.

Iraq’s West Qurna-2 is located in the south of the country near Basra. Lukoil recently stated that oil production at the development currently stands at 450,000 barrels per day. Current participants in the West Qurna-2 field include South Oil Company of the Ministry of Oil of Iraq, Lukoil and Iraqi North Oil Company.

According to an article from Reuters on August 18, 2015, hundreds of locals recently blocked some entrance to the Iraqi field, demanding jobs in the process. The Reuters article also stated that South Oil Company warned output could be affected unless the protests were defused.

A graduate in journalism from Cardiff University, Andreas has eight years of experience as a business journalist.


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies

Our Privacy Pledge

More from this Author
Andreas Exarheas
Assistant European Editor | Rigzone
 -  Scottish Labour Says Oil, Gas Must Be ... (Jul 7)
 -  Top 10 Highest Paying Oil Jobs for Gra... (Jul 7)
 -  OCA Invites Unions for Fresh Talks (Jul 6)
 -  Total, NIOC Sign South Pars Developmen... (Jul 4)
 -  BB-1 Described as 'Key Well' (Jul 3)

Most Popular Articles

From the Career Center
Jobs that may interest you
International Accountant
Expertise: Accounting
Location: Downers Grove, IL
Senior Accountant - Derivative Accounting
Expertise: Accounting|Energy / Commodity Trading|Financial Analyst
Location: Delaware, DE
Load Planner/ Dispatcher Frac Sand
Expertise: Dispatcher|Project Management
Location: Mansfield, TX
search for more jobs

Brent Crude Oil : $48.6/BBL 1.12%
Light Crude Oil : $46.34/BBL 1.24%
Natural Gas : $2.9/MMBtu 2.35%
Updated in last 24 hours