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Tue, Mar. 3, 8:23 AM
- Lukoil (OTCPK:LUKOY, OTC:LUKOF) reports that its 2014 net income fell by 39% to $4.75B, falling short of analyst expectations despite revenue rising by 2% to $144B, due to weaker oil prices and impairment losses; quarterly results were not provided.
- EBITDA declined 4% Y/Y to $15.98B, also missing analyst consensus for $19.5B.
- The impairments included dry-hole writeoffs of $794M on projects in Ivory Coast, Ghana and Russia, as well as a $761M charge related to Tsentralno-Astrakhanskoe gas condensate field in the Volga region.
- Oil and gas production rose 5% to the 2.31M boe/day, thanks to the addition of output from the West Qurna-2 deposit in Iraq.
Mon, Feb. 9, 3:41 PM
- Lukoil (OTCPK:LUKOY, OTC:LUKOF) is seeking damages from Sinopec (NYSE:SNP) through arbitration proceedings in London, saying the Chinese company breached an agreement to buy 50% of a Kazakh oil producer for ~$1.2B.
- The Russian company says SNP failed to complete a deal agreed in April 2014 to buy the stake in Caspian Investment Resources, a company with various stakes in four hydrocarbon production projects in Kazakhstan.
- Lukoil's share of production through the venture was ~30K bbl/day in 2013.
Thu, Jan. 22, 12:53 PM
- Lukoil (OTCPK:LUKOY, OTC:LUKOF) President Vagit Alekperov says the Russian oil company will cut its planned 2015 capital spending by 10%, or $1.5B, in response to low oil prices.
- Alekperov says dividends are "very important" and that the company will maintain its dividend policy at 2014 levels.
- Lukoil also will start a tour to test market interest for a possible new Eurobond issue in the spring, as western sanctions over its role in the Ukraine crisis has made it difficult to raise financing on the global capital markets.
Dec. 23, 2014, 2:39 PM
- Privately owned Russian oil company Lukoil (OTCPK:LUKOY, OTC:LUKOF) says it sold its share in a Venezuelan project to state-controlled Rosneft (OTC:RNFTF), whose share in the consortium that is developing the project now rises to 80%; the oil arm of Russia’s Gazprom (OTCPK:OGZPY) owns 20%.
- Rosneft's Igor Sechin says Venezuelan oil that can become the "substitutional element" for what he anticipates as the receding volumes of U.S. and Canadian shale production.
Dec. 19, 2014, 10:37 AM
- Even some of Wall Street's big boys are taking a beating in the oil sector: Carl Icahn’s holdings of Talisman Energy (NYSE:TLM) have tumbled $230M since late August, and John Paulson’s firm had one of its largest losses of the year on a bet that big oil companies would buy smaller ones.
- Before TLM agreed to be bought by Repsol, which boosted TLM shares, Icahn's losses stood at more than $540M as recently as Dec. 11, and he still will have lost ~$290M at the deal price; Icahn also holds stakes in hard-hit Chesapeake Energy (NYSE:CHK) and Transocean (NYSE:RIG).
- Paulson was the biggest shareholder in Whiting Petroleum (NYSE:WLL) and Oasis Petroleum (NYSE:OAS) at the end of Q3, but his strategy could yet pay off, as many analysts expect consolidation in the energy sector as lower oil prices pressure smaller firms.
- Also caught flat-footed by the oil price pullback was Prosperity Capital’s Mattias Westman, a longtime investor in Russia whose firm has lost more than $1B this year, in part on stakes in Russian energy companies Gazprom (OTCPK:OGZPY) and Lukoil (OTCPK:LUKOY, OTC:LUKOF).
Nov. 28, 2014, 4:22 AM
- Lukoil (OTCPK:LUKOY) vice-president Leonid Fedun warns that falling oil prices and western sanctions will lead to a bigger fall in Russian oil production than previously forecast.
- Although the decline would not be "dramatic", he predicts a drop from a peak of about 525m tonnes this year to 490m tonnes within four to five years.
- Lukoil announced yesterday that profits had more than halved in Q3 due to tumbling oil prices and a weak rouble.
Nov. 21, 2014, 12:42 PM
- Lukoil (OTCPK:LUKOY, OTC:LUKOF) has climbed 12% in U.S. trading this week, and BCS Financial is advising clients to buy the Russian oil producer’s stock, saying the “huge discount” to its biggest competitors is not justified.
- Lukoil’s stock price does not reflect the tax benefits it will get from developing new Caspian Sea fields as well as production in areas where crude is more difficult to extract, BCS believes.
- Lukoil, up 3.5% today, said yesterday that overseas output jumped 44% YTD.
Oct. 8, 2014, 6:55 AM
- Lukoil (OTCPK:LUKOY, OTC:LUKOF) has launched an oilfield in western Siberia today ahead of schedule to counter falling production and recent U.S. sanctions.
- The U.S. imposed sanctions against Russian energy companies last month prevents U.S. firms from supporting Russian firms' activities in exploration or production from deep water, Arctic offshore or shale projects.
- Lukoil plans to produce 200 tonnes of oil per day at the field this year. In 2015, it plans to produce 300K-400K tonnes, while in five years annual output is set to reach 3M tonnes with a future maximum annual production of 5M tonnes.
- The field, which has total extractable oil reserves of 194M tonnes (1.4B barrels), was originally due to be launched in March next year.
Sep. 30, 2014, 7:51 AM
- Schlumberger (NYSE:SLB) reportedly is withdrawing employees who are citizens of the U.S. and EU from Russia amid sanctions.
- Russia relies on fracking for 25% of its oil production and replacing technology developed by companies like SLB would require “colossal funds,” Lukoil (OTCPK:LUKOY, OTC:LUKOF) CEO Vagit Alekperov says.
- SLB gets 5%-7% of its global sales from Russia.
Sep. 22, 2014, 5:22 PM
- Total (NYSE:TOT) says its joint venture with Russia’s Lukoil (OTCPK:LUKOY, OTC:LUKOF) to explore shale oil in western Siberia has been halted as a result of western sanctions, a clear sign that the latest round of sanctions against Russia over Ukraine will put a brake on plans to develop the country’s shale oil resources.
- TOT also is developing the $27B Yamal liquefied natural gas project with Russia's Novatek and China’s CNPC, but CEO Christophe de Margerie says he hopes Yamal can raise financing from western banks but not in dollars, adding that the Chinese had committed to cover 60% of Yamal’s financing needs.
- The comments come as TOT used an investor day to announce plans to sell $10B worth of assets during 2015-17.
Sep. 12, 2014, 10:32 AM
- Sberbank - Russia's largest lender - is added to the sanctions list and will be blocked from accessing U.S. debt markets for financing any longer than 30 days. Five Russian state-owned defense-technology firms are also now under sanction.
- Sanctions now restrict anything other than financial services to five firms in the Russian energy sector, including Gazprom (OTCPK:OGZPY), Lukoil (OTCPK:LUKOY), and Rosneft (OTC:RNFTF).
- ETFs: RSX, RUSL, RSXJ, RUSS, ERUS, RBL, RUDR
Sep. 11, 2014, 7:03 AM
- Lukoil (OTCPK:LUKOY) has placed a bid for a diesel pipeline which runs through Ukraine to Hungary, reports Vedomosti quoting a letter from the company to Vladimir Putin. The pipeline is now operated by a subsidiary of Russia's Transneft.
- Vedomosti says Putin has approved of the bid after receiving the letter, which stated that following the purchase of the pipeline's owner, a consortium of Russian and European companies would be created to operate the pipeline.
- The pipeline transported 925K tonnes of oil products to Ukraine and 815K tonnes to Hungary in 2013.
Sep. 4, 2014, 2:22 PM
- The EU is preparing to bar Russia’s state-controlled oil companies from raising funds on European capital markets, according to legislation approved by the European Commission and reported by the Financial Times.
- The legislation, which is expected to be approved by EU ambassadors by the end of this week, would hit Rosneft (OTC:RNFTF), Russia’s largest oil group, Gazprom Neft (OTCQX:GZPFY), the Gazprom (OTCPK:OGZPY) oil subsidiary, and probably Transneft, the world’s largest oil pipeline company.
- Other Russian oil groups, such as Lukoil (OTCPK:LUKOY, OTC:LUKOF), appear to be exempt because of their private ownership.
- The ban would add to a similar restriction adopted in July on Russian banks seeking to raise cash in Europe.
Sep. 2, 2014, 2:15 PM
- Russia's Lukoil (OTCPK:LUKOY, OTC:LUKOF) has made a discovery at Ghana’s offshore Cape Three Points project, Bloomberg reports.
- Ghana and its partners, including Tullow Oil (OTCPK:TUWLF, OTCPK:TUWOY) and Anadarko Petroleum (NYSE:APC), plan to spend $20B in the next decade to boost oil production to 500K bbl/day from current output of ~100K bbl/day.
- If commercially viable, the Lukoil find would be Ghana’s fifth planned offshore field.
Aug. 29, 2014, 2:32 PM
- Russia's no. 2 oil producer Lukoil (OTCPK:LUKOY, OTC:LUKOF) says its H1 commercial hydrocarbon production rose by 3.2% Y/Y to 410M boe, as overall crude production for Q2 gained 7% to 2M bbl/day.
- Says production at the West Qurna-2 project in Iraq had reached 330K bbl/day, and expects to eventually peak at 1.2M bbl/day from estimated recoverable reserves of ~13B barrels.
- Lukoil says it plans to cut capital spending by as much as $2B starting from 2015 because of economic and political volatility, after H1 capex came in at $7.7B.
LUKOY vs. ETF Alternatives
LUKOIL is one of the world's leading vertically integrated oil & gas companies. Main activities of the Company are exploration and production of oil & gas, production of petroleum products and petrochemicals, and marketing of these outputs. Most of the Company's exploration and production... More
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