PJSC LUKOIL today released its audited consolidated financial
statements for 2021 prepared in accordance with the International
Financial Reporting Standards (IFRS).
Financial
highlights
4Q 2021
|
3Q 2021
|
|
12M 2021
|
12M 2020
|
|
|
(RUB bln)
|
|
|
2,768.0
|
2,588,7
|
Sales
|
9,435.1
|
5,639.4
|
395.0
|
355.2
|
EBITDA
|
1,404.4
|
687.1
|
233.8
|
192.5
|
Profit for the period attributable to LUKOIL shareholders
|
773.4
|
15.2
|
127.3
|
94.3
|
Capital expenditures
|
433.0
|
495.4
|
190.1
|
227.7
|
Free cash flow
|
693.6
|
281.1
|
244.2
|
233.5
|
Free cash flow before changes in working capital
|
877.5
|
189.4
|
COVID-19
Since the start of COVID-19 pandemic, LUKOIL has
been undertaking necessary measures to rule out the direct impact of
the pandemic on the Group's operating activity, prioritizing proper
protection of its employees, contractors personnel and clients, as
well as continuity of production processes.
The main impact on financial performance of the
Group is related to the volatility of oil and petroleum products
prices and lower production volumes in 2020.
Sales
In the fourth quarter of 2021, our sales amounted
to RUB 2,768.0 bln, up 6.9% quarter-on-quarter. The growth was mainly
attributable to higher crude oil and refined products prices, and
hydrocarbon production and refined products trading volumes.
In 2021, our sales amounted to RUB 9,435.1 bln, up
67.3% year-on-year mainly due to higher hydrocarbon prices, ruble
devaluation, higher hydrocarbon production volumes, as well as higher
refinery throughput and oil and refined products trading volumes.
EBITDA
4Q 2021
|
3Q 2021
|
|
12M 2021
|
12M 2020
|
|
|
(RUB bln)
|
|
|
395.0
|
355.2
|
EBITDA
|
1,404.4
|
687.1
|
296.5
|
245.0
|
Exploration and production
|
986.3
|
500.1
|
234.6
|
206.9
|
Russia
|
821.9
|
421.6
|
61.9
|
38.1
|
Outside Russia
|
164.4
|
78.5
|
114.4
|
125.8
|
Refining, marketing and distribution
|
487.3
|
243.3
|
111.2
|
107.9
|
Russia
|
370.7
|
180.7
|
3.2
|
17.9
|
Outside Russia
|
116.6
|
62.6
|
In the fourth quarter of 2021, EBITDA
increased by 11.2% quarter-on-quarter to RUB 395.0 bln.
Besides higher oil prices, EBITDA of the
Exploration and production segment in Russia was positively affected
by higher oil production volumes due to the changes in external
limitations under the OPEC+ agreement, as well as higher positive
time lag effect of export duty and MET. Outside Russia, EBITDA
dynamics was mainly attributable to higher hydrocarbon prices and
higher gas production, as well as higher EBITDA of the West Qurna-2
project.
Higher EBITDA of the Refining, Marketing and
Distribution segment in Russia was driven by better results of oil
refining and power generation segments. Outside Russia EBITDA was
lower due to scheduled maintenance works at the refinery in Bulgaria,
higher fuel and energy cost, as well as lower trading margins and
seasonally lower retail segment results. The negative impact of these
factors was partially offset by the accounting specifics of hedging
operations in international trading and higher positive inventory
effect at the refineries.
EBITDA in 2021 more than doubled year-on-year
mainly as a result of higher hydrocarbon prices, ruble devaluation,
positive inventory effect at the refineries, higher throughput
volumes and refining margins, positive time lag effect of export duty
and MET, as well as higher oil production volumes in Russia and gas
production volumes outside Russia. EBITDA growth was constrained by
elimination of tax incentives for high-viscous crude oil and weaker
results of retail business in Russia.
Profit for the period
In the fourth quarter of 2021, profit attributable
to PJSC LUKOIL shareholders amounted to RUB 233.8 bln, which is 21.5%
higher quarter-on-quarter. As a result, in 2021 profit was up to RUB
773.4 bln as compared to profit of RUB 15.2 bln in 2020. Besides
higher EBITDA, profit dynamics is attributable to non-cash asset
impairment loss and foreign exchange loss in 2020.
Free cash flow
In the fourth quarter of 2021, free cash flow
amounted to RUB 190.1 bln, which is 16.5% lower quarter-on-quarter.
The decline was mainly attributable to working capital build-up and
higher capital expenditures in the fourth quarter of 2021.
In 2021, free cash flow increased to RUB 693.6 bln
as compared to RUB 281.1 bln in 2020. The growth is attributable to
higher operating margins and lower capital expenditures, while the
growth was constrained by working capital build-up.
Operating
highlights
4Q 2021
|
3Q 2021
|
|
12M 2021
|
12M 2020
|
2,335
|
2,152
|
Hydrocarbon production, Kpd
|
2,197
|
2,117
|
2,299
|
2,132
|
excluding West Qurna-2
|
2,163
|
2,064
|
1,782
|
1,662
|
Liquid hydrocarbon production, Kbpd
|
1,678
|
1,651
|
1,746
|
1,642
|
excluding West Qurna-2
|
1,644
|
1,598
|
8.7
|
7.7
|
Gas production, bln cubic meters
|
32.2
|
29.0
|
14.8
|
16.5
|
Production of refined products at own refineries, mln
tonnes
|
60.0
|
55.0
|
In 2021, LUKOIL Group's average hydrocarbon
production excluding the West Qurna-2 project was 2,163 thousand boe
per day, which is 4.8% higher year-on-year, while in the fourth
quarter of 2021 hydrocarbon production increased by 7.8%
quarter-on-quarter. The production growth was attributable to the
dynamics of the external limitations on oil production due to the
OPEC+ agreement, as well as higher gas production volumes.
Liquid hydrocarbons
In 2021, liquid hydrocarbon production excluding
the West Qurna-2 project was 1,644 thousand barrels per day, which is
2.9% higher year-on-year. In the fourth quarter of 2021, liquid
hydrocarbons production was 1,746 thousand barrels per day, up by
6.3% quarter-on-quarter. Liquid hydrocarbons production dynamics was
driven by the OPEC+ agreement concluded in April 2020, which led to
limitations on oil production by the Group in Russia and at certain
international projects.
Despite the external limitations on crude oil
production volumes, development of the priority projects continued.
In particular, in West Siberia total oil and gas condensate
production for the nine months of 2021 at the V. Vinogradov,
Imilorskoye, Sredne-Nazymskoye and Pyakyakhinskoye fields increased
by 8.1% year-on-year, to 4.5 mln tonnes.
Gas
In 2021, gas production increased in average daily
terms by 11.4% year-on-year, to 32.2 bln cubic meters. The growth was
driven by recovery of gas production in Uzbekistan after temporary
decline in 2020 due to lower demand from China for gas produced in
Uzbekistan amid the COVID-19 pandemic.
In the fourth quarter of 2021, gas production
increased in average daily terms by 12.9% quarter-on-quarter and
amounted to 8.7 bln cubic meters. The increase was mainly
attributable to higher production in Uzbekistan.
Refined products
In 2021, production of refined products at LUKOIL
Group's refineries was 60.0 mln tonnes, which is 9.2% higher
year-on-year. The increase was attributable to higher refineries
utilization rates due to better market environment in 2021, as well
as scheduled maintenance works in 2020. In the fourth quarter of
2021, production of refined products was 14.8 mln tonnes, which is
10.0% lower quarter-on-quarter due to scheduled maintenance works at
the refineries outside Russia, as well as seasonal throughput
optimization in Russia.
Information
The
full set of audited consolidated IFRS financial statements of PJSC
"LUKOIL" for the year ended 31 December 2021 and the
related notes as well as Management's Discussion and Analysis of
Financial Condition and Results of Operations are available on the
Company's websites: www.lukoil.com and www.lukoil.ru.
PJSC
LUKOIL is one of the largest publicly traded, vertically integrated
oil and gas companies in the world in terms of proved hydrocarbon
reserves and production; and the second largest producer of crude
oil in Russia. Established in 1991, the Company currently operates
in more than 30 countries with core upstream assets located in
Russia. The full production cycle includes oil and gas exploration,
production and refining; production of petrochemicals and
lubricants; power generation; marketing and distribution providing
LUKOIL with maximum synergies from its activities. The Company’s
shares are listed in Russia on Moscow Exchange under the ticker
“LKOH” and depositary receipts are listed on the London Stock
Exchange under the ticker “LKOD”.
CONTACT INFORMATION
Press Centre PJSC "LUKOIL"
media@lukoil.com
+7 (495) 627-16-77
https://www.lukoil.com
https://www.facebook.com/Lukoil.en
https://twitter.com/lukoilengl
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