Russian oil company Lukoil reported a profit of 157.4 billion rubles ($2.1 billion) in the first quarter of 2021 compared to a $624.7 million gain in the same quarter of last year, according to its financial results statement released Wednesday.
The company had posted full-year 2020 earnings of $206 billion, down 98% compared to $8.7 billion in 2019.
"Weaker global economic activity amid the pandemic followed by an unprecedented slump in hydrocarbon demand and prices had a significant negative impact on the operational and financial performance of the Group in 2020 with persisting negative effects in the first quarter of 2021," the company said.
It added that crude oil production cuts at its fields in Russia and in some international projects due to the OPEC+ agreement and the consequences of the pandemic affected the company's operating results. Gas production cuts in Uzbekistan last year because of short-lived lower demand for Uzbek gas from China also contributed negatively. Other influences include a reduction in refinery throughput volumes due to lower refining margins, lower demand for certain refined products, and lower sales volumes of motor fuels through filling stations because of lower demand.
Lukoil’s sales over the same period amounted to $25.5 million, up 22.6% quarter-on-quarter.
Compared to the first quarter of 2020, the company’s sales increased by 12.6% "mainly due to higher crude oil prices and ruble devaluation."
The growth was constrained by lower hydrocarbon production, refinery throughput and trading volumes, it added.
By Sibel Morrow