LUKOIL announced the interim consolidated financial statements for 3-and 9-month period ended 30 September 2020 under IFRS, aas it was informed by the company.
The uptrend is explained by increase in the hydrocarbons prices, higher share of investments into oil production in Russia and in the refining. The impact of these factors was partially offset by a decrease in oil production in Russia as a result of restrictions related to the new OPEC+ agreement, a decrease in the positive effect of reserves, as well as a decrease in gas production and the margin of trade operations abroad.
Thus, EBITDA of LUKOIL Group increased 40.0% in the third quarter of 2020 vs. Q2 and declined 48.1% during the nine months of 2020. The net profit of shareholders in the third quarter of 2020 reached 50bn rub. vs. 19bn rub. in losses prior quarter. The capital expenditures plunged 4bn rub. or 3.8%, compared to Q2.
The free cash flow in the third quarter of 2020 gained 115bn rub. or 349.4% higher Q2 due to the increase in the profitability.
The average daily production of hydrocarbons lost 6.6% compared to Q2andy 10.3% vs. nine months of 2019. The cut-down is explained by the new OPEC+ agreement and drop in gas supplies from Uzbekistan to China, prompted by the COVID-19 pandemic.
