LukOil to cut 10% of its profit margin to maintain market share

“We expect $76 million [€53.83 mln] in our 2009 EBITDA [Earnings before interest, taxes, depreciation and amortization], similar to our 2008 level,” Constantin Tampiza, the company’s General Manager, told Business Standard.
 
One of the risks considered by the company is “the depreciation of the leu against the dollar.” Regarding the 2009 net sales forecast, Tampiza said that “the price of the oil barrel changes on a daily basis, so any budget forecast is symbolical.” LukOil presently has a 25 percent market share.

The Russian LukOil group posted a 70.9 percent increase in net sales in this year’s first nine months, up to $10.76 billion [€7.62 bln], due to favorable conditions, a higher efficiency of refineries, and lower costs.