LUKoil RAS net profit declines 16.9% to $2.1 bln in 2006
LUKoil [RTS: LKOH] said Monday its net profit, calculated to Russian Accounting Standards (RAS), declined 16.9%, year-on-year, in 2006, to 55.12 billion rubles (about $2.1 billion), RIA Novosti reports.
Russia's largest oil producer said its net profit fell 48.9%, quarter-on-quarter, in October-December 2006, to 4.04 billion rubles (about $155.4 million).
LUKoil attributed its net profit decline in the fourth quarter of 2006 to the growth of commercial and managerial costs, largely caused by increased transport expenses.
At the same time, transport expenses grew due to an increase in the share of petroleum product exports in the company's sales structure and higher transport tariffs, LUKoil said in a statement.
Net profit also declined due to lower gross profit as average market prices of oil and petroleum products declined while export duties increased in the fourth quarter of 2006, the statement said.