MOSCOW: Lukoil PJSC, Russia’s second largest oil producer, said third-quarter profit dropped 62 per cent, a bigger decline than estimated, after crude prices fell amid a global supply glut.
Net income fell to $623 million (Dh2.3 billion) in the third quarter compared to $1.62 billion the previous year, according to the Moscow-based company. That was below the $826 million average estimate in a survey of nine analysts by Bloomberg News. Sales fell 40 per cent to $23.4 billion.
Crude prices have fallen to about half the previous year’s level after the Organisation of Petroleum Exporting countries reacted to a global supply glut by defending market share rather than cutting output. Russian oil and gas producers Bashneft PJSC, Gazprom Neft PJSC and OAO Novatek also reported a decline in profit or a loss in this period.
Oil and gas production in the first nine months of the year rose 3.5 per cent to 2.37 million barrels a day. Oil and liquids output increased 3.9 per cent to an average 2.05 million barrels a day, mainly due to growth in Iraq, Lukoil said in the statement.
