OAO Lukoil’s profit surged in the third quarter, beating estimates, as the second-largest Russian oil producer halted output declines and benefited from export taxes that lagged price growth.
Net income rose 56 percent to $3.51 billion from $2.24 billion a year earlier, the Moscow-based company said in a regulatory filing today. Earnings before interest, taxes, depreciation and amortization climbed 18 percent to $5.44 billion, beating the $4.68 billion average estimate of nine analysts surveyed by Bloomberg News.
Lukoil has been reviving domestic crude output growth since April after a three-year decline caused by reduced spending and lower production at a northern field. Increases in export duties failed to match crude and product price gains in the third quarter.
Crude and gas output, including international projects, rose 1.4 percent to 2.16 million barrels a day from a year earlier. Free cash flow reached $4.76 billion in the first nine months of the year.
“It’s very difficult to generate growth and cash simultaneously in the Russian oil sector and with upstream growth returning Lukoil is beginning to do both,” Dmitry Loukashov, an oil and gas analyst at VTB Capital in Moscow, said by e-mail.
Sales rose 2.7 percent to $35.5 billion, Lukoil said. Capital spending totaled $8.1 billion in the year through September.