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PRESS-RELEASE
16.12.2014
EXTRAORDINARY GENERAL SHAREHOLDERS MEETING OF OAO LUKOIL APPROVES INTERIM DIVIDEND PAYMENTS

The outcomes of the Extraordinary General Shareholders Meeting of OAO “LUKOIL” (the ‘EGM’) that took place in the form of absentee voting on 12 December 2014 have been summarized today.

The shareholders made a decision to pay interim dividends on ordinary shares of OAO “LUKOIL” in the amount of 60 roubles per ordinary share. 26 December 2014 was set as the date on which persons entitled to receive the above mentioned interim dividends will be determined.

In order to ensure the dividend payment evenness, it is expected to take a decision on their payment on a semiannual basis, i.e. based on the annual financial results and based on the nine months results.

Dividend payments to nominee shareholders and professional market participants will be made from the account of OAO “LUKOIL” not later than 19 January 2015, to other persons registered in the shareholder register of OAOLUKOIL” – not later than 9 February 2015.

Starting from 2012, in accordance with amendments to the OAO LUKOIL Charter and with the Regulations on the Procedure for Preparing and Holding the General
Shareholders Meeting of OAO “LUKOIL”, the company makes payments of interim dividends to increase the investment attractiveness of its shares* and implements the strategy of growth of dividend payments.

 

* The Company calls attention of all interested parties that the interim dividend amount for a relevant reporting period cannot be regarded as a sole criteria for determining the total dividend amount based on the results of the entire financial year.

 

PRESS-RELEASE
16.12.2014
LUKOIL WINS “GREEN RAY” NATIONAL AWARD IN THE AREA OF ENVIRONMENTAL PROTECTION

LUKOIL has won the “Green Ray” national award in the area of environmental protection, the “Eco-Friendly Business” category. The award ceremony took place on December 15, in St. Petersburg, as part of the festive events dedicated to the 90th anniversary of the All-Russian Society for Environmental Protection.

The ceremony's guest list included G.S. Poltavchenko, Governor of St. Petersburg, I.I. Nikitchuk, First Deputy Chairman of the RF State Duma Committee on Natural Resources and Environmental Protection, M.V. Slipenchuk, Chairman of the Guardianship Board of the Central Council under the All-Russian Society for Environmental Protection, Deputy Chairman of the RF State Duma Committee on Natural Resources and Environmental Protection, V.N. Matveyev, Chairman of the Committee on Environmental Management, Environmental Protection and Security under the St. Petersburg Administration, and representatives of 45 regional subdivisions of the All-Russian Society for Environmental Protection, as well as various heads of Russian companies and federal departments.
 

In addition, the LUKOIL representatives participated in a round-table discussion titled “Ecology and Business - Open Space” held under the auspices of the All-Russian Society for Environmental Protection in St. Petersburg. Yu.V. Babak, Executive Director of the All-Russian Society for Environmental Protection, and A.N. Abashin, Head of OAO LUKOIL’s Environmental and Industrial Safety Division, presented their reports on the development outlook of the partnership interaction between environmental engineers and entrepreneurs - based on the example of cooperation between OAO LUKOIL and the All-Russian Society for Environmental Protection, as well as on the experience in the establishment of a corporate environmental-protection system.

PRESS-RELEASE
01.12.2014
PRESS SERVICE STATEMENT

The OAO LUKOIL Press Service announces the appointment of Andrei Gavrilets to the post of General Director of OOO LUKOIL-Permnefteprodukt as of 1 December, 2014. Before that, he headed LUKOIL-Ukraine, an enterprise with foreign investments.

OOO LUKOIL-Permnefteprodukt is one of LUKOIL’s bigger interregional sales operators with 7 oil depots and 318 gas-filling stations. The operation area includes the Perm Territory, the Kirov Region, the Udmurt Republic and the Sverdlovsk Region.

PRESS-RELEASE
08.12.2014
RESOLUTIONS OF LUKOIL’S BOARD OF DIRECTORS

Today the Board of Directors of OAO LUKOIL approved changes and amendments to the Regulations on Labor Remuneration and Incentives in terms of the key indicators that characterize the activities of the Head of the Division of Petroleum Product Marketing Coordination, and updates on the Regulations on Annual Remuneration for the President and Top Management.

The Board of Directors has also approved changes to the list of persons included in the long-term remuneration program for the employees of OAO LUKOIL and its subsidiaries.

PRESS-RELEASE
27.11.2014
LUKOIL EBITDA REACHED $15.5 BILLION IN THE NINE MONTHS OF 2014, LIQUID HYDROCARBONS PRODUCTION INCREASED BY 6%

LUKOIL has published consolidated US GAAP financial statements for the nine months of 2014.

EBITDA1 (earnings before interest, taxation, depreciation and amortization) in the nine months of 2014 increased by 5.9% to $15,475 million. The Company’s net income in the nine months of 2014 amounted to $5,742 million. Sales revenues were $112,907 million (+7.0% y-o-y).

Free cash flow in the nine months of 2014 amounted to $1,072 million. Capital expenditures, including non-cash transactions, in the nine months of 2014 were $11,680 million.    

In the nine months of 2014, LUKOIL Group total hydrocarbon production available for sale increased by 4.6% y-o-y and reached 2,291 thousand boe per day. Crude oil and natural gas liquids production in the nine months of 2014 increased by 5.9% y-o-y to 1,975 thousand barrels per day. The increase was mainly due to the start of commercial production from West Qurna-2 project in Iraq. In addition, increase in crude oil and natural gas liquids production in Russia was 1.3% due to the production increase in Timan-Pechora (+4.3%), Ural region (+4.9%) and Volga region (+16.5%). Refined products produced at the Company’s refineries in Russia increased by 0.9% mainly due to an increase in throughput at the Perm Refinery.

1 Adjusted for loss on disposal of assets and dry hole related write-offs.

                                                                      

                                                               Consolidated Statements of Income

 

3rd quarter of

9 months of

2014

2013

2014

2013

(millions of US dollars)

Revenues

       

Sales (including excise and export tariffs)

39,021

36,737

112,907

105,560

         

Costs and other deductions

       

Operating expenses

(2,726)

(2,514)

(7,593)

(7,480)

Cost of purchased crude oil, gas and products

(18,603)

(17,176)

(54,717)

(48,741)

Transportation expenses

(1,510)

(1,503)

(4,620)

(4,715)

Selling, general and administrative expenses

(994)

(979)

(2,865)

(2,817)

Depreciation, depletion and amortization

(2,788)

(1,545)

(6,785)

(4,358)

Taxes other than income taxes

(3,501)

(3,591)

(10,355)

(10,370)

Excise and export tariffs

(5,745)

(5,664)

(16,571)

(16,952)

Exploration expenses

(207)

(65)

(476)

(203)

Loss on disposals and impairments of assets

(87)

(43)

(501)

(33)

Income from operating activities

2,860

3,657

8,424

9,891

Interest expense

(171)

(127)

(466)

(345)

Interest and dividend income

74

62

194

181

Equity share in income of affiliates

154

133

427

430

Currency translation (loss) gain

(347)

57

(615)

(339)

Other non-operating (expense) income

(108)

71

(227)

252

Income before income taxes

2,462

3,853

7,737

10,070

Current income taxes

(828)

(325)

(2,174)

(1,629)

Deferred income taxes

(5)

(432)

203

(665)

Total income tax expense

(833)

(757)

(1,971)

(2,294)

Net income

1,629

3,096

5,766

7,776

Net (income) loss attributable to non-controlling interests

(9)

9

(24)

14

Net income attributable to OAO LUKOIL

1,620

3,105

5,742

7,790

         

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

       

Basic

2.15

4.11

7.61

10.32

Diluted

2.11

4.02

7.46

10.10

 

Full version of US GAAP interim consolidated financial statements of OAO LUKOIL for the nine months ended September 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.