OREANDA-NEWS. December 13, 2010. LUKOIL published consolidated US GAAP financial accounts for the third quarter and nine months of 2010.

The Company’s net income was USD 6,820 million in the nine months of 2010 (including USD 2,818 million in the third quarter), which is 29.0% higher y-o-y. EBITDA increased by 17.1% in the nine months of 2010 and amounted to USD 11,985 million. Revenues from sales were USD 76,272 million.

Capital expenditures including non-cash transactions in the nine months of 2010 remained flat y-o-y and amounted to USD 4.7 billion. Strong financial discipline enabled the Company to generate record high free cash flow, which reached USD 6,964 million in the nine months of 2010, compared to USD 1,442 million in the nine months of 2009. Despite the share buy-back in the third quarter of 2010, which amounted to USD 4.42 billion, the Company managed to achieve good financial results.

The Company’s tax expenses, including excise and export tariffs, totalled USD 22.3 billion in the nine months of 2010, including an income tax expense of USD 1.7 billion.

Lifting costs per boe of production in the nine months of 2010 were USD 4.04, which is a 19.2% increase y-o-y. The growth was mainly due to the real rouble appreciation, which reached 14%.

LUKOIL Group total hydrocarbon production available for sale reached 2,249 th. boe per day in the nine months of 2010, which is a 1.6% increase y-o-y.

Crude oil production of LUKOIL Group in the nine months of 2010 totalled 72.27 mln tons. Natural and petroleum gas output available for sale increased by 26.1% , to 13.79 bcm.

Production at own and affiliated refineries of LUKOIL Group (including the share in oil and petroleum product throughputs at the ISAB and TRN complexes) increased by 7.6% y-o-y in the nine months of 2010 and reached 47.79 mln tons. Production at the Company’s refineries in Russia increased by 1.3% y-o-y; production at the international refineries grew by 23.9% y-o-y.

Measures aimed at higher efficiency and cost control allow the Company to generate higher free cash flow and increase net income.