LukOil Americas Logo
LukOil Americas Slogan
PRESS-RELEASE
03.09.2014
LUKOIL SPONSORS A NEW EXHIBITION HELD IN THE MOSCOW KREMLIN MUSEUMS

Beginning September 3, LUKOIL is supporting an exhibition titled “Charles Rennie Mackintosh: a New Style Manifesto” in the Moscow Kremlin Museums. It is an integral part of the official program of the UK/Russia Year of Culture and for the first time presents the artistic legacy of the great Scottish architect, painter and designer in Russia.

Charles Rennie Mackintosh was one of the originators of the concept of complex space design, which means that one artist designs the premises and creates its interior and its decorative appearance. He is also known as a brilliant graphic artist who sketched advertisements, cover pages, postcards, and trademarks.

The exhibition will be open through November 9, 2014.

For reference:

In the recent years, the Moscow Kremlin Museums held the following exhibitions supported by LUKOIL: “Treasures of Ottoman Sultans” (2010), “Poiret, Fashion King” (2011), “Kremlin in 1812. War and Peace” (2012), and “The Art of Conserving Art. Restoration at the Moscow Kremlin Museums” (2013).

In 2004 LUKOIL and the Moscow Kremlin Museums initiated a joint program to arrange guest exhibitions and educational programs in the Russian regions. The exhibitions of this kind were held between 2004 and 2011 in Perm, Nizhny Novgorod, Volgograd, and Kazan.

PRESS-RELEASE
29.08.2014
LUKOIL BOARD OF DIRECTORS SUMMARIZES COMPANY’S PERFORMANCE IN THE FIRST HALF OF 2014

The OAO LUKOIL BoD has reviewed the preliminary results for the first half of 2014, and budget and investment program realization progress in 2014 in Moscow today.

As a result of geological exploration carried out by the Company 5 oil fields were discovered in the first half of 2014, namely Svetloozerskoye, Razdolnoye, Kulikovskoye and Novokrasinskoye in the Volga region, and Yuzhno-Bayandyskoye in the Komi Republic.

Commercial hydrocarbon production by LUKOIL Group over the first six months of 2014 rose by 3.2% as compared to the similar period of 2013 thus totaling 410 million BOE. The liquid hydrocarbon production grew by 4.5% up to 352 million barrels.

The oil output in the Russian Federation rose by 1.3% and totaled 314 million barrels, while abroad the figure came to 31 million barrels due to the start of commercial production at the West Qurna-2 field in Iraq. The commercial gas output reached 9.8 billion cubic meters.

The associated gas utilization rate at the Company’s enterprises in Russia grew by 1.5 percent points and came to 89.2%.

In the first half of 2014 considerable results in implementation of the corporate strategic projects were achieved:

  • completion of the first development stage of the West Qurna-2 field
  • start of production drilling at the Imilorsko-Istochniy license site ahead of schedule
  • continued infrastructure development at the Vladimir Filanovsky field in the Caspian Sea, supply and assembly of the central processing platform and the LQ platform at the bearing blocks
  • commissioning of the mining and concentration complex at the Vladimir Grib diamond field.


LUKOIL continued to implement measures to enhance output and bring new facilities into development. It also continued to introduce and test new technologies focused on the enhancement of development efficiency of low-permeability gas reservoirs and new well flow rates.

Oil processing at the Company’s refineries (including mini-refineries, and the stake in the Zeeland project) rose by 0.8% against the first six months of 2013 and totaled 32.26 million tons, including 22.52 million tons at Russian refineries.

The capital expenditure of LUKOIL Group in the first six months of 2014 totaled USD 7.7 billion, exceeding the last year’s figure by 11%.

LUKOIL Group organizations have contributed RUB 592 billion in taxes and customs fees to the RF budget, which is 13% more than last year's figure. The growth in the tax payments can be accounted for by the increased profit tax payments, MET payments and petroleum product excise duty.

PRESS-RELEASE
29.08.2014
LUKOIL GROUP EMPLOYEES GRANTED STATE, INDUSTRY AND CORPORATE AWARDS

A festive award ceremony took place in Moscow today to grant state, industry and corporate awards to the LUKOIL Group employees dedicated to the professional holiday — the Oil and Gas Industry Workers Day. The award was granted to the top executives of the Company’s subsidiaries and Central Office, the engineering and technical staff, and blue collar workers.The award ceremony was attended by the Head of the Presidential Department of State Awards, Vladimir Osipov, and Vagit Alekperov, OAO LUKOIL President.

“The awards granted today to LUKOIL’s employees serve as yet another proof of your high professional qualifications and significant contributions to the development of the industry and strengthening of Russia’s international relations. I am convinced that this commitment to the business and adherence to the best national traditions of the Fuel and Energy Complex will allow the Company to further demonstrate excellent performance results for the benefit of our country,” Osipov said.

“In the future LUKOIL is going to face other large-scale projects, whose implementation will require complete discipline of excellence and professional qualifications from all of us, as well as a responsible attitude, and the necessity to introduce and efficiently apply the cutting-edge techniques. I am quite sure that the accumulated knowledge and experience will help us settle the issues faced by the company,” Mr. Alekperov said.

For reference:

In 2014 state awards were earned by more than 30 employees of LUKOIL Group, and industry labor decorations were granted to more than three hundred employees, while corporate awards were given to more than 1,000 employees of the Company. Among the persons who were awarded: First Executive Vice President, Ravil Maganov -- Order of Merit for the Motherland, 3rd degree; General Director of OOO LUKOIL-PERM, Aleksandr Leyfrid – Order of Honor; Vice President of the Company, General Director of OOO LUKOIL-West Siberia, Sergey Kochkurov – Medal of the Order of Merit for the Motherland, 2nd degree, etc.

                                                                       

PRESS-RELEASE
29.08.2014
LUKOIL NET INCOME INCREASED TO $2.4 BILLION IN THE SECOND QUARTER OF 2014, EBITDA – TO $5.4 BILLION, LIQUID HYDROCARBONS PRODUCTION – BY 7.2%

LUKOIL has published consolidated US GAAP financial statements for the second quarter of 2014.

The Company’s net income in the second quarter of 2014 amounted to $2,389 million, which is a 13.5% y-o-y increase. EBITDA (earnings before interest, taxation, depreciation and amortization) in the second quarter of 2014 increased by 24.7% y-o-y to $5,437 million. Sales revenues were $38,205 million (+9.0% y-o-y). The increase in revenue and EBITDA was mainly due to crude oil production growth in Russia and the start of cost compensation from West Qurna-2 project in Iraq.

Capital expenditures, including non-cash transactions, in the second quarter of 2014 were $4,490 million.    

In the second quarter of 2014, LUKOIL Group total hydrocarbon production available for sale increased by 5.5% y-o-y and reached 2,313 thousand boe per day. Crude oil and natural gas liquids production in the second quarter of 2014 increased by 7.2% to 2,002 thousand barrels per day. The increase was mainly due to the start of commercial production from West Qurna-2 project in Iraq. Throughput at the Company’s refineries in Russia increased by 1.6%.

Consolidated Statements of Income

 

2nd quarter of

1st half of

 

2014

2013

2014

2013

   

(millions of US dollars)

 

Revenues

       
 

Sales (including excise and export tariffs)

38,205

35,053

         73,886

68,823

           
 

Costs and other deductions

       
 

Operating expenses

(2,558)

(2,516)

         (4,867)

(4,966)

 

Cost of purchased crude oil, gas and products

(18,871)

(16,462)

       (36,114)

(31,565)

 

Transportation expenses

(1,557)

(1,562)

         (3,110)

(3,212)

 

Selling, general and administrative expenses

(1,015)

(972)

         (1,871)

(1,838)

 

Depreciation, depletion and amortization

(2,485)

(1,444)

         (3,997)

(2,813)

 

Taxes other than income taxes

(3,408)

(3,396)

         (6,854)

(6,779)

 

Excise and export tariffs

(5,339)

(5,787)

       (10,826)

(11,288)

 

Exploration expense

(64)

(75)

           (269)

(138)

 

Gain (loss) on disposals and impairments of assets

1

17

           (414)

10

 

Income from operating activities

2,909

2,856

           5,564

6,234

           
 

Interest expense

(155)

(121)

           (295)

(218)

 

Interest and dividend income

63

58

             120

119

 

Equity share in income of affiliates

91

139

             273

297

 

Currency translation gain (loss)

2

(257)

           (268)

(396)

 

Other non-operating (expense) income

(39)

168

           (119)

181

 

Income before income taxes

2,871

2,843

           5,275

6,217

           
 

Current income taxes

(541)

(658)

         (1,346)

(1,304)

 

Deferred income taxes

70

(90)

             208

(233)

 

Total income tax expense

(471)

(748)

         (1,138)

(1,537)

           
 

Net income

2,400

2,095

           4,137

4,680

           
 

Net (income) loss attributable to non-controlling interests

(11)

9

             (15)

5

           
 

Net income attributable to OAO LUKOIL

2,389

2,104

           4,122

4,685

           
 

Earning per share of common stock attributable to
OAO LUKOIL (in US dollars):

       
 

Basic

3.16

2.79

5.46

6.21

 

Diluted

3.10

2.73

             5.35

6.08

           

                                                                                                                                      

Full version of US GAAP interim consolidated financial statements of OAO LUKOIL for the three and six-month periods ended June 30, 2014, is available on the Company’s web sites: www.lukoil.com and www.lukoil.ru

These interim consolidated financial statements have been prepared by the Company in accordance with U.S. GAAP and have not been audited by our independent auditor. If these financial statements are audited in the future, the audit could reveal discrepancies, and we cannot give any assurance that any such discrepancies would not be material.

PRESS-RELEASE
28.08.2014
PRESIDENT OF LUKOIL CHARITY FUND AWARDED WITH THE “FOR BENEFICENCE” DECORATION

Vladimir Putin, President of the Russian Federation, signed Decree No. 568, which awards Nelly Alekperova, President of the non-profit organization, the LUKOIL Charity Fund, with the “For Beneficence” Decoration for great contributions to charitable and public activities.

The Decree was published on the official website of the RF President on August 27, 2014.

The “For Beneficence” Decoration was introduced in 2012 and has been granted 7 times up until now.

The LUKOIL Charity Fund was established in 1993, and its social charitable projects are focused on supporting educational, health and religious institutions, museums, theaters, creative and sports teams, orphanages and children’s educational institutions, veterans of war and labor in the regions of the Russian Federation and CIS countries. For many years the Fund has been maintaining tight cooperative relations with the P.I. Tchaikovsky Large Symphony Orchestra, the Bolshoi Theater, the State Tretyakov Gallery, the Moscow Kremlin Museums, the Pushkin State Museum of Fine Arts (GMII), the State Russian Museum and the State Historical Museum.