After “Rosneft” and “Gazprom oil” about a loss in the first quarter, said LUKOIL. Amid falling oil prices and falling demand, the company received 46 billion rubles of net loss under IFRS. At the same time, free cash flow of LUKOIL, which served as the basis for calculation of dividends remained positive, although reduced by 70%, to 55 billion rubles LUKOIL reported net loss for the first quarter of 2020 46 billion RUB compared to sales profit of 149 billion RUB over the same period last year, according to the report of the oil company under IFRS.”Negative impact on financial results had a dramatic decline in world hydrocarbon prices (the average price of oil decreased by 20% year-on-year.— “B”), the negative effects of lag in export duties and tax on extraction of mineral resources, the negative effect of incoming inventory at the refinery, and the impact of the pandemic COVID-19 on gas sales abroad of petroleum products through a retail network,— the document says.— The negative impact of these factors was partially offset by increased oil production volumes, improvement of the reference of the refining margins and the depreciation of the ruble to the dollar”.As a result of the devaluation of the ruble in late March after a drop in oil prices, the loss from currency exchange in the first quarter of 2020 amounted to 15 billion rubles, the loss from impairment of assets in production and processing/marketing — RUB 8 billion and RUB 36 billion, respectively.While free cash flow for the three months decreased by 70%, to 55 billion rubles, despite the fact that capex of LUKOIL grew by 33.7% to RUB 130 billion Decrease in free cash flow mainly due to the reduction of profitability of the main activity of the group, explained in the report.Average daily hydrocarbon production LUKOIL (2.4 million b/d) decreased by 1% year-on-year, reflecting a decrease in deliveries of gas projects in Uzbekistan in China as a result of lower demand due to pandemic COVID-19. February LUKOIL has reduced gas production to 40% of design capacity. The negative impact was partly offset by share growth in production on the projects implemented on the basis of the PSA, due to lower oil prices. In General, LUKOIL increased production of liquid hydrocarbons in the first quarter by 2% to 22.1 million tons.In addition, LUKOIL reported on the progress of execution of the agreement OPEC+, which entered into force on 1 may. Extraction of the oil company in Russia decreased by approximately 310 thousand b/d, or 19%, compared with the average daily oil production in Russia in the first quarter of 2020. “To minimize the negative impact of production cuts on our financial performance, it was at least profitable fields,” the report said.15:00 GMT following the publication of the report of the action of LUKOIL on the Moscow stock exchange rose nearly 1% to 5.5 thousand RUB over the paper.Dmitry Kosovrasti is the largest-ever production cuts Neufto further tichitt
