Lukoil Q1 IFRS net loss reaches $665.54 mln

TASS Russian News Agency | Jun 3, 2020 at 3:45 PM

MOSCOW, June 3. /TASS/. In January - March 2020, Lukoil received a net loss of 45.784 bln rubles ($665.54 mln) under the International Financial Reporting Standards (IFRS) against a profit of 149.79 bln rubles ($2.17 bln) for the same period last year, the company said on Wednesday.

The company's revenue for the reporting period decreased by 10% and amounted to 1.67 trillion rubles ($24.24 bln). At the same time, capex increased by 33.7% to 130.2 bln rubles ($1.9 bln).

"Weaker global economic activity amid the pandemic followed by an unprecedented slump in hydrocarbon demand and prices had a negative impact on operational and financial performance of the Group in the first quarter of 2020 with persisting negative effect in the second quarter of 2020. The consequences of the pandemic for the Company's operational results in the first quarter of 2020 and April-May 2020 include: crude oil production cut at the Company's fields in Russia and some international projects due to the new OPEC+ agreement; gas production cut in Uzbekistan due to lower demand from China; reduction of refinery throughput volumes due to lower refining margins owing to lower demand for refined products; and lower sales volumes of motor fuels through the Company's filling stations because of lower demand. The main impact of the pandemic on the Company's financial performance is attributed to sharp decline in prices for oil and refined products," the company said.

The company's EBITDA in January - March fell by almost half, dropping to 150.8 bln rubles ($2.19 bln). Lukoil's operating profit declined 4.8 times to 40.125 bln rubles ($583.3 mln). The loss before tax amounted to 22.41 bln rubles ($325.78 mln).

Lukoil is a vertically integrated oil and gas company established in 1991. The main mining assets of the company are located in Russia. Lukoil has a full production cycle, including exploration, production, and refining of oil and gas, production of petrochemical products and oils, electricity production, trade and marketing. The company's shares are listed on the Moscow Exchange, depositary receipts - on the London Stock Exchange.