May 28 (Bloomberg) -- OAO Lukoil, Russia’s second-largest oil producer, said profit rose 7.7 percent in the first quarter on higher crude prices.
Net income advanced to $3.79 billion from $3.52 billion a year earlier, the Moscow based company said today in a regulatory filing. That beat the $3.10 billion average estimate of 12 analysts surveyed by Bloomberg News. Revenue rose 19 percent to $35.3 billion.
Prices for Russia’s Urals export blend crude advanced 14 percent in the first three months of the year to an average $116.98 a barrel, according to data compiled by Bloomberg News. OAO Rosneft, Russia’s largest oil producer, and TNK-BP posted declines on the quarter after losing tax exemptions.
Lukoil expects “significant dividend growth compared to this year,” billionaire shareholder and Deputy Chief Executive Leonid Fedun said at a presentation in Hong Kong today.
Oil and gas output fell 0.7 percent to 2.2 million barrels a day due to declines in the Yuzhnoye Khylchuyu deposit, Lukoil said. The company’s hydrocarbon extraction expenses were little changed at $4.70 per barrel of oil equivalent, Lukoil said.
Capital expenditure rose to $2.46 billion in the quarter from $1.72 billion in the year-earlier period. That was less than expected, according to Pavel Sorokin, an oil and gas analyst at Alfa Bank.
“This is positive becuase first quarter operating results were also strong,” Sorokin said.
Lukoil increased 2 percent to 1,670.30 rubles on Moscow’s Micex at 11:39 a.m local time.
Lukoil is in talks with potential partners to develop Iraq’s West Qurna-2 field and has recieved “considerable interest” from Asian companies, Fedun said.
Lukoil, which is presenting the results in Hong Kong today and holding a capital markets day tomorrow, is contemplating an Asian listing.
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