PJSC LukOil LUKOIL Reports 1H2017 Preliminary Operating Data (0164O)

TIDMLKOD

RNS Number : 0164O

PJSC LukOil

15 August 2017

LUKOIL REPORTS PRELIMINARY OPERATING DATA FOR THE SECOND QUARTER AND FIRST SIX MONTHS OF 2017

LUKOIL Group's daily hydrocarbon production excluding West Qurna-2 project for the first six months of 2017 increased by 1.5% year-on-year to 2,217 thousand boe per day. In the second quarter of 2017 production was 2,222 thousand boe per day, representing a 0.4% growth quarter-on-quarter. The increase in production was driven by the development of gas projects.

Hydrocarbon production, thousand boe per day

 
 2Q 2017   1Q 2017                                   6M 2017   6M 2016 
--------  --------  ------------------------------  --------  -------- 
                     Total (excluding West Qurna-2 
   2,222     2,213    project)                         2,217     2,185 
--------  --------  ------------------------------  --------  -------- 
 

LUKOIL Group's crude oil production in the second quarter of 2017 amounted to 21.8 million tonnes. The quarter-on-quarter decline was due to the temporary external limitations of Russian companies' production volumes. For the first six months of 2017 oil production was 43.6 million tonnes. The year-on-year dynamics was mainly driven by the reduction in compensation crude oil volumes from the West Qurna-2 project in Iraq.

Planned production growth continued at V. Filanovsky and Pyakyakhinskoe fields and amounted to 25.8% and 11.7% quarter-on-quarter, respectively.

Oil production, thousand tonnes

 
 2Q 2017   1Q 2017                                     6M 2017   6M 2016 
--------  --------  --------------------------------  --------  -------- 
                     Total (excluding West 
  21,306    21,397    Qurna-2 project)                  42,703    43,264 
  20,374    20,442          Russia                      40,816    41,371 
  20,120    20,178               Subsidiaries           40,298    40,903 
     254       264               Share in affiliates       518       468 
     932       955          Outside Russia               1,887     1,893 
     496       517               Subsidiaries            1,013     1,000 
     436       438               Share in affiliates       874       893 
                     Compensation oil from 
     482       405    West Qurna-2 project                 887     3,510 
  21,788    21,802   Total                              43,590    46,774 
--------  --------  --------------------------------  --------  -------- 
 

LUKOIL Group's gas production for the second quarter of 2017 increased by 7.6% quarter-on-quarter and amounted to 7.0 bcm. As a result, for the first six months of 2017 LUKOIL produced 13.4 bcm of gas, which is 9.4% higher year-on-year. Production dynamics was positively impacted by the launch of gas facilities at Pyakyakhinskoe field in the beginning of 2017 and the development of gas projects in Uzbekistan.

Gas production, million cubic meters

 
 2Q 2017   1Q 2017                                        6M 2017   6M 2016 
--------  --------  -----------------------------------  --------  -------- 
   6,952     6,459   Total                                 13,411    12,261 
   4,646     4,330          Russia                          8,976     7,998 
   4,621     4,307                  Subsidiaries            8,928     7,957 
      25        23                  Share in affiliates        48        41 
   2,306     2,129          Outside Russia                  4,435     4,263 
   2,103     1,924                  Subsidiaries            4,027     3,864 
     203       205                  Share in affiliates       408       399 
--------  --------  -----------------------------------  --------  -------- 
 

Refinery throughput at LUKOIL Group's refineries in the second quarter of 2017 was 16.4 million tonnes, which is 1.2% higher quarter-on-quarter. For the first six months of 2017, refinery throughput was 32.6 million tonnes, a 1.1% increase year-on-year.

The quarter-on-quarter positive dynamics was mainly attributable to the increase in the utilization rate at our refinery in Romania after maintenance in the first quarter of 2017. A moderate decrease of Company's throughput volumes in Russia was driven by repair works at Perm refinery, while utilization rates at refineries in Nizhny Novgorod and Volgograd increased due to seasonal factors.

In the first six months of 2017, throughput volumes at our refineries in Russia increased by 5.1% year-on-year primarily due to maintenance works at refineries in Nizhny Novgorod and Volgograd in the first half of 2016.

Refinery throughput, thousand tonnes

 
 2Q 2017   1Q 2017                                                6M 2017   6M 2016 
--------  --------  -------------------------------------------  --------  -------- 
                     Total for LUKOIL Group 
  16,394    16,196    refineries                                   32,590    32,220 
  10,447    10,506          Russia                                 20,953    19,937 
   5,947     5,690          Outside Russia                         11,637    12,283 
   5,359     5,119                  Oil processing                 10,478     9,538 
     588       571                  Refined products processing     1,159     2,745 
                     Third party refineries 
   1,678     1,396    abroad                                        3,074       165 
--------  --------  -------------------------------------------  --------  -------- 
 

Note:

LUKOIL will release its Interim Consolidated Financial Statements for the second quarter and the first six months of 2017 prepared in accordance with IFRS and MD&A on August 29, 2017.

The information in this press release is an estimate of the LUKOIL Group's results for the second quarter and the first six months of 2017 and therefore constitutes forward-looking statements. This information is preliminary and based on information available at the date of this document, and may be revised after statistical, financial, tax and accounting statements become available. The information on the LUKOIL Group's operational results in this press release are subject to many external factors which may cause the actual results to differ materially from those expressed or forecasted in this press release for the second quarter and the first six months of 2017. The LUKOIL Group assumes no obligation to update or alter its forward-looking statements, whether as a result of new information, subsequent events or otherwise, except to the extent required by applicable law.

This document does not constitute or form part of an invitation or inducement to engage in investment activity with, or any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of, the LUKOIL Group, nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute a recommendation regarding the securities of, or any investment in, the LUKOIL Group.

Information about the Company:

PJSC "LUKOIL" is one of the largest publicly traded, vertically integrated oil and gas companies in the world in terms of proved hydrocarbon reserves and production; and the second largest producer of crude oil in Russia. Established in 1991, the Company currently operates in more than 30 countries with core upstream assets located in Russia. The full production cycle includes oil and gas exploration, production and refining; production of petrochemicals and lubricants; power generation; marketing and distribution providing LUKOIL with maximum synergies from its activities. The Company's shares are listed in Russia on Moscow Exchange under the ticker "LKOH" and depositary receipts are listed on the London Stock Exchange under the ticker "LKOD".

This information is provided by RNS

The company news service from the London Stock Exchange

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August 15, 2017 04:13 ET (08:13 GMT)