Russia’s Lukoil posts 35% sales decline; agrees with China Sinopec on $1 billion deal

Russia’s Lukoil said in a press release published June 10 that its first quarter sales revenue fell 35% to $23.2 billion compared with a year earlier, as published in its earnings statement filed according to US accounting guidelines.

The decline caused also a decrease in its earnings before interest, taxes and depreciation in the first quarter of 2015 which fell by 30% to $2.8 billion compared with the first quarter of 2014, the company said. Capital expenditures were slashed 25% to $2.4 billion, it added.

“Throughput at the company’s refineries in Russia decreased by 12% mainly due to a decrease in refining margins as a result of changes in tax legislation,” Lukoil said.

Lukoil and Sinopec signed an agreement for the sale of LukoilL’s 50% interest in Caspian Investment Resources Ltd. It will replace the previous sales and purchase contract signed on April 15, 2014. According to the agreement the sale price will be $1.1 billion.

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