Russian oil firm LUKoil reports 27% drop in net profit in 1H09

Russia`s largest privately owned oil producer LUKoil said on Monday its net profit calculated under Russian Accounting Standards had declined 27%, year-on-year, in January-June to 37.5 billion rubles ($1.2 billion).

LUKoil, which accounts for around 1.3% of global oil reserves and some 2.3% of global oil output, said its net profit increased 63.7% in April-June 2009, quarter-on-quarter, to 23.279 billion rubles ($751 million).

"The main reason for the net profit increase is the growth of revenues from stakes in other organizations linked with the distribution of profits of subsidiary companies for 2008. Another factor behind the net profit growth is the increase in global oil prices," LUKoil said in a statement.

In 2008, LUKoil`s U.S. GAAP net profit fell 3.9%, year-on-year, to $9.14 billion. The company`s oil output declined 1.5%, year-on-year, in 2008 to 95.24 million metric tons (1.9 million barrels per day) while gas production rose 22% in the reporting period to 17.02 billion cubic meters.

LUKoil earlier announced plans to boost its oil output 2.9% in 2009 to 98.2 million metric tons (1.97 million barrels a day).

LUKoil`s nominal majority shareholder with 63.3% of shares is Russia`s ING Bank (Eurasia). U.S. oil major ConocoPhillips has a 20% stake. LUKoil President Vagit Alekperov directly and indirectly controls about 20% of the company`s stock.

sections: Economics