Lukoil Q1 EBITDA up 5.7%
In the first quarter of 2018 Lukoil sales were RUB 1,630.7 bln, 13.9% higher year-on-year mainly due to higher hydrocarbon prices. Lower refined products trading volumes, inventory build-up and stronger ruble negatively impacted sales dynamics.
Lukoil sales decreased by 1.9% quarter-on-quarter mainly due to the lower oil trading volumes, crude oil inventory build-up and stronger ruble. These factors were partially offset by higher hydrocarbon prices.
In the first quarter of 2018 Lukoil EBITDA was RUB 219.5 bln. The year-on-year and quarter-on-quarter EBITDA dynamics was supported by the increased share of high-margin barrels in total production, better refined product slate at Lukoil refineries and higher sales volumes via premium marketing channels.
EBITDA increased by 5.7% as compared to the first quarter of 2017. Besides abovementioned factors EBITDA growth was also driven by higher oil prices partially offset by stronger ruble.
Quarter-on-quarter EBITDA decreased by 1.9% mainly due to lower positive crude oil export duty lag effect, stronger ruble as well as lower refining margins in Russia and Europe. Lower operating and SG&A expenses positively contributed to EBITDA dynamics.
Profit attributable to PJSC "LUKOIL" shareholders was RUB 109.1 bln, up 75.0% year-on-year. Profit growth was mainly driven by significant negative non-cash foreign exchange effect in the first quarter of 2017. Excluding this factor, profit attributable to PJSC "LUKOIL" shareholders increased by 13.5%.
Quarter-on-quarter profit declined by 9.5% mainly due to higher DD&A.
In the first quarter of 2018 capital expenditures were RUB 121.1 bln, decreasing 12.1% quarter-on-quarter and 7.0% year-on-year mainly due to lower investments in the international upstream. ■