Lukoil's financial performance

Main article: Lukoil

2023: Profit growth compared to 2021 by 48% to RUB 1.16 trillion (IFRS)

At the end of 2023, net profit Lukoil"" reached 1.16 trillion. rubles The results for 2022 were not disclosed, but it is noted that compared to 2021, net profit rose by 48.72%. The corresponding indicators are reflected in the financial report published on March 12, 2024.

Lukoil's revenue in 2023 amounted to 7.93 trillion rubles. This is approximately 16% less than in 2021. Other comprehensive income of the company amounted to 563.39 billion rubles: this item includes foreign exchange income when recalculating foreign transactions, profit from investments, as well as revaluation of the net liability. In 2021, according to this indicator, Lukoil received a loss of 16.29 billion rubles. Lukoil's total total income in 2023 reached 1.72 trillion rubles, which is 2.3 times more than in 2021.

𝓲

Unsplash

The report says that the management of Lukoil decided not to disclose comparative information for 2022 in the consolidated financial statements, since such information is generally classified by management as sensitive data that were not previously published. This is due, among other things, to the formed geopolitical situation.

It is noted that since December 5, 2022, the United States, Britain, the EU, other G7 countries and Australia have introduced a maximum price of $60 per barrel of oil for sea transportation from Russia to other countries. In addition, from February 5, 2023, the same states additionally introduced a restriction on the price of Russian oil products at the level of $100 per barrel for oil products traded at a premium to oil, and $45 per barrel for oil products traded at a discount to oil. In the future, as stated in the published document, these values ​ ​ can be revised.^[1]

2022: Annual revenue growth by 20.3% to RUB 2.87 trillion (RAS)

Lukoil's net profit according to Russian accounting standards (RAS) amounted to 790.12 billion rubles at the end of 2022, which is 24.3% more than a year earlier. The company's revenue during this time rose by 20.3% and reached 2.87 trillion rubles. Such data were released in early April 2023.

According to TASS, citing Lukoil's report, the gross profit of the oil company in 2022 increased by 29%, to 1.09 trillion rubles. Profit before taxes increased by more than 30%, to 884.9 billion rubles, and the cost - to 1.8 trillion rubles.

Gross profit of oil company for 2022 increased by 29%

The company reports that in March 2023, financial investments in the form of shares of foreign subsidiaries acquired by Lukoil as part of intra-group transactions in the amount of $1.5 billion were accepted for accounting.

As noted by Alexey Kokin, an expert at Otkritie Research, chief analyst at Otkritie Investments, as a rule, Lukoil's RAS reporting reflects the indicators of only part of the business: at the end of 2021, revenue under RAS amounted to 25% of revenue under IFRS. Thus, the RAS framework does not include the international trading business with its significant turnover. However, operating and net profit under RAS were closer to IFRS indicators in 2021, amounting to 72% and 82% of them, respectively, the expert added.^[2]

2021: Revenue growth by 67.3% to RUB 9.44 trillion (IFRS)

At rubles the end of 2021, Lukoil's revenue reached 9.44 trillion, which is 67.3% more than a year earlier. This rise in the company was associated with an increase in hydrocarbon prices, devaluation, ruble an increase in hydrocarbon production, as well as refining and trading volumes with oil and petroleum products. IFRS The Russian oil and gas giant published its reports on the Russian oil and gas giant in March 2022.

Lukoil's net profit in 2021 amounted to 773.4 billion rubles against 15.2 billion rubles in 2020. In addition to the increase in EBITDA, the dynamics of net profit is due to the impact of non-cash losses on asset impairment and exchange rate differences in 2020, the company said.

EBITDA for 2021 more than doubled (to 1.41 trillion rubles), mainly due to rising hydrocarbon prices, devaluation of the ruble, the positive effect of reserves at refineries, growth in refining volumes and margins, the positive effect of the temporary lag in export duty and MET, as well as an increase in oil and gas production in Russia and gas abroad. At the same time, EBITDA growth was constrained by the abolition of tax incentives for high-viscosity oil and the deterioration of retail business results in Russia.

In the Exploration and Production segment in Russia, in addition to rising oil prices, the EBITDA dynamics was positively influenced by an increase in oil production due to the dynamics of external restrictions under the OPEC + agreement, as well as an increase in the positive effect of the temporary lag on export duty and MET. Abroad, EBITDA dynamics is mainly related to the increase in hydrocarbon prices and an increase in gas production, as well as an increase in EBITDA of the West Qurna-2 project.

In 2021, Lukoil's free cash flow increased to 693.6 billion rubles, compared with 281.1 billion rubles in 2020. The growth is associated with an increase in operating margins and a decrease in capital expenditures, with the accumulation of working capital having a chilling effect.^[3]

2020

Combined revenue of insourced IT companies of Lukoil - 12.15 billion rubles

At the end of 2020, Lukoil reduced revenue by 8% - to 12,156,127 thousand rubles Data include the combined revenue of two insourcing companies "" Lukoil - Inform(3,984,811 thousand rubles) and "(LUKOIL Technology 8,171,316 thousand rubles) In the ranking, " TAdviser "The largest IT insourcing companies in Russia Lukoil took the seventh line. In 2019, the same figure was 13,218,644 thousand rubles.

Lukoil entered the top 10 most profitable companies for investors in the world

Lukoil"" closed the top 10 of the world ranking The Boston Consulting Group (BCG) of companies that provide shareholders with the largest increase in investment. BCG has been publishing the rating for 21 years and takes into account how much shareholders could earn in the five-year period on the purchase and sale of shares - taking into account the dividends received during this time. The yield on ownership of Lukoil shares from 2014 to 2018 amounted to 27.1% - more than that of "" Novatek(23.5%), as well as (Sberbank 16.6%), writes BCG. At the end of 2018, only these three Russian companies entered the top 50^[4]

Chinese and American companies are ahead of Lukoil. The leader is GPU developer Nvidia (54.4%), followed by media content maker Netflix (38.5%), Chinese investment company Tencent Holdings (43.5%) and food holding Kweichow (29.3%).

In the BCG industry ratings last year, seven Russian companies: Alrosa - the fourth among mining companies, Evraz, MMK and Severstal - are in the top 10 in the ranking of metallurgists (3, 5 and 10th places, respectively).

2013: Revenue growth 1.6% to $141.5 billion

Company logo until 2019

2013 was successful for the company in terms of growth in operating indicators (production increased by 1.5% to 2.2 million barrels of oil per day) and high oil prices. However, revenue grew by only 1.6% YoY to $141.5 billion, and net profit decreased by 30% YoY to $7.8 billion. True, this fall is of a "paper nature" - a number of assets were written off in the Nenets Autonomous Okrug, Africa, the USA, Italy and Ukraine. The growth of net debt and capital expenditures by 28% compared to 2012 (up to $15.4 billion). By 2016, LUKOIL plans to switch to IFRS reporting - perhaps preparations for the transition to a new standard have begun in the current reporting. In addition, we recall that earlier LUKOIL abandoned SPO plans in Hong Kong.

2011: Profit for 9 months amounted to $9 billion

LUKOIL's net profit in the third quarter of 2011 was $2.2 billion, compared to $2.818 billion a year earlier.

According to the results of the first nine months, the profit amounted to $9 billion. Meanwhile, analysts expected these figures to be at $3.064 billion and $9.832 billion, respectively.

The most accurate was the forecast of Raiffeisen Bank, whose experts predicted LUKOIL's net profit of $2.594 billion and $9.362 billion, respectively.

The significant increase in financial indicators is mainly due to the increase in hydrocarbon prices in the period of 9 months of 2011 compared to the same period in 2010.

The net profit for the third quarter of 2011 was negatively affected by losses related to the impairment of the ruble in the amount of about $570 million, including income tax expenses on foreign exchange differences of Russian enterprises of the group in the amount of about $340 million, the company explains.

Notes