PJSC LukOil Preliminary Operating Data 1Q2021 (7143Y)

TIDMLKOD

RNS Number : 7143Y

PJSC LukOil

14 May 2021

LUKOIL REPORTS PRELIMINARY OPERATING DATA

FOR THE FIRST QUARTER OF 2021

In the first quarter of 2021 LUKOIL Group's average hydrocarbon production excluding the West Qurna-2 project was 2,152 thousand boe per day, which is 4.2% higher quarter-on-quarter. The growth was attributable to the dynamics of the external limitations on oil production due to the OPEC+ agreement, as well as to the recovery of gas production in Uzbekistan. Hydrocarbon production was 7.6% lower year-on-year due to the OPEC+ agreement.

Hydrocarbon production, thousand boe per day

 
 1Q 2021   4Q 2020                                       1Q 2021   1Q 2020 
--------  --------  ----------------------------------  --------  -------- 
                     Total (excluding the West Qurna-2 
   2,152     2,065    project)                             2,152     2,328 
--------  --------  ----------------------------------  --------  -------- 
 

Oil production excluding the West Qurna-2 project was 18.8 million tonnes in the first quarter of 2021, which is 2.4% higher quarter-on-quarter and 11.2% lower year-on-year in average daily terms. Oil production dynamics was driven by the OPEC+ agreement concluded in April 2020, which led to limitations on oil production by the Group in Russia and at certain international projects. Due to the agreement, oil production by the Group in Russia was cut in May 2020 by approximately 310 thousand barrels per day, or by 19%, as compared to the level of the first quarter of 2020, and has been gradually recovering subsequently. As a result, in the first quarter of 2021 oil production by the Group in Russia was approximately 130 thousand barrels per day higher compared to May 2020 level.

Oil production, thousand tonnes

 
 1Q 2021   4Q 2020                                        1Q 2021   1Q 2020 
--------  --------  -----------------------------------  --------  -------- 
                     Total (excluding the West Qurna-2 
  18,780    18,755    project)                             18,780    21,384 
  17,887    17,801          Russia                         17,887    20,365 
  17,746    17,663                  Subsidiaries           17,746    20,227 
     141       138                  Share in affiliates       141       138 
     893       954          Outside of Russia                 893     1,019 
     560       605                  Subsidiaries              560       588 
     333       349                  Share in affiliates       333       431 
     609       463   Share in the West Qurna-2 project        609       721 
  19,389    19,218   Total                                 19,389    22,105 
--------  --------  -----------------------------------  --------  -------- 
 

Despite external limitations on production volumes, development of the priority projects continued. In particular, in West Siberia total oil and gas condensate production in the first quarter of 2021 at the V. Vinogradov, Imilorskoye, Sredne-Nazymskoye and Pyakyakhinskoye fields increased by 8.3% year-on-year, to 1.1 million tonnes.

High viscosity oil production at the Yaregskoye field and Permian reservoir of the Usinskoye field in the first quarter of 2021 increased by 4.3% year-on-year, to 1.3 million tonnes.

Implementation of drilling programs at the V. Filanovsky and Yu. Korchagin fields in the Caspian Sea allowed to increase total oil and gas condensate production in the first quarter of 2021 by 1.6% year-on-year, to 1.9 million tonnes. The V.I. Grayfer field development continues: subsea pipelines and cable lines are being laid, shipyards are constructing topsides of the platforms.

The share of the abovementioned projects in the LUKOIL Group's oil production excluding the West Qurna-2 project amounted to 23% in the first quarter of 2021 as compared to 19% in the first quarter of 2020.

Gas production, million cubic meters

 
 1Q 2021   4Q 2020                                        1Q 2021   1Q 2020 
--------  --------  -----------------------------------  --------  -------- 
   8,789     8,225   Total                                  8,789     8,412 
   4,263     4,309          Russia                          4,263     4,665 
   4,222     4,269                  Subsidiaries            4,222     4,643 
      41        40                  Share in affiliates        41        22 
   4,526     3,916          Outside of Russia               4,526     3,747 
   4,381     3,759                  Subsidiaries            4,381     3,581 
     145       157                  Share in affiliates       145       166 
--------  --------  -----------------------------------  --------  -------- 
 

In the first quarter of 2021, gas production increased in average daily terms by 9.2% quarter-on-quarter and by 5.6% year-on-year, to 8.8 billion cubic meters.

In Russia gas production increased in average daily terms by 1.1% quarter-on-quarter and decreased by 7.6% year-on-year, to 4.3 billion cubic meters. Dynamics of gas production in Russia was driven by the change in associated petroleum gas production due to the external limitations on oil production.

Outside Russia gas production increased in average daily terms by 18.1% quarter-on-quarter and by 22.1% year-on-year, to 4.5 billion cubic meters. The growth was driven by recovery of gas production in Uzbekistan after temporary decline in 2020 due to lower demand from China for gas produced in Uzbekistan amid the COVID-19 pandemic.

Refinery throughput, thousand tonnes

 
 1Q 2021   4Q 2020                                                1Q 2021   1Q 2020 
--------  --------  -------------------------------------------  --------  -------- 
    14,4                                                             14,4 
      44    13,145   Total for LUKOIL Group refineries                 44    17,090 
 10,0 26     9,682          Russia                                10,0 26    10,937 
  4,41 8     3,463          Outside of Russia                      4,41 8     6,153 
  3,78 8     3,085                  Oil processing                 3,78 8     5,590 
     630       378                  Refined products processing       630       563 
       0        28   Third party refineries abroad                      0        53 
--------  --------  -------------------------------------------  --------  -------- 
 

In the first quarter of 2021 refinery throughput at LUKOIL Group's refineries was 14.4 million tonnes, which is 9.9% higher quarter-on-quarter, and 15.5% lower year-on-year. The dynamics of refinery throughput volumes was attributable to scheduled maintenance works and throughput optimization at some of the refineries driven by the changes in macro environment.

Refinery throughput in Russia in the first quarter of 2021 increased by 3.6% quarter-on-quarter, to 10.0 million tonnes due to scheduled maintenance works in the fourth quarter of 2020. Refinery throughput in Europe in the first quarter of 2021 increased by 27.6% quarter-on-quarter to 4.4 million tonnes mainly due to scheduled maintenance works and throughput optimization at refineries in Italy and Bulgaria in the fourth quarter of 2020.

Note:

LUKOIL will release its Condensed Interim Consolidated Financial Statements prepared in accordance with IFRS and MD&A for the first quarter of 2021 on May 26, 2021.

The information in this press release is an estimate of the LUKOIL Group's results for the first quarter of 2021 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 first quarter of 2021. 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. 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".

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May 14, 2021 08:00 ET (12:00 GMT)