Lukoil marks a decrease of 59% in net profit in the first quarter of 2016

The net profit of Lukoil, the second biggest oil manufacturer in Russia, fell by 59% in the first three-month period, since the oil prices “slid down” to a 12-year minimum, informs the New York agency Bloomberg.

The net income of Lukoil fell down to RUB 42.8 billion (USD 651 mil) from RUB 104 billion made in the same period last year, says the company’s statement. The free cash flow of Lukoil went down by 43% to RUB 36 billion, which is, according to analyst Aleksandar Kornilov’s estimation, the weakest point in the entire first quarter report.

The results are nevertheless better than what the six analysts surveyed by Bloomberg predicted, which was a RUB 41.3 billion profit.

The weakening of the ruble helped the Russian manufacturers to partially soften the consequences of the crisis which came about due to low oil prices, whereas an increase in production enabled smaller competitors, like PJSC Bashneft and PJSC Gazprom Neft, to increase their profits in the first three-month period.

Lukoil shares increased by 1% to 2,613 rubles at the Moscow Stock Exchange, since the price of “brent” oil exceeded USD 50 per barrel.