Higher oil prices lower LukOil profits

The hike in oil prices was higher compared to the price increase for fuel at the pumps, leading to a 3 percent drop in sales, the company’s General Manager, Constantin Tampiza, told Business Standard.

The average quotation for a barrel of oil was $110.5 for January-September, compared to $67.2 per barrel in the first nine months of 2007.

The company’s turnover rose 32 percent, up to $1.72 billion (€1.37 bln).
By the end of 2008, LukOil Romania estimates turnover of at least $2.3 billion (€1.7 bln), some 30 percent higher year-on-year, and operating profit down 6-7 percent, to $75-76 million (€55-56 mln).