Russian oil giant Lukoil reports 34 percent spike in net earnings

0 Comments | AFP, January, 2007

MOSCOW (AFP) — Russia's leading oil producer Lukoil reported a 34 percent spike in net earnings over the first nine months of 2006 from the same period in 2005, that it attributed to higher crude prices and increased production. Net profit in the January to September period came to 6.442 billion dollars (4.9 billion euros).

Sales jumped 27.7 percent to 51.80 billion dollars. "The rise in net earnings is linked to a favorable price environment, an increase in extraction and processing volumes, efficient cost controls and improved oil refining margins," the company said in a statement. But it added that the gains had at the same time been hampered by an appreciation in the ruble against the dollar and steeper taxes. Lukoil vice president Leonid Fedoun told a press conference...