About the Company: highlights of the year
Public Joint-Stock Company “Oil Company ‘LUKOIL’” is one of the world’s largest publicly traded, vertically integrated oil and gas companies in terms of total proved reserves and hydrocarbon production. PJSC LUKOIL is the corporate center of LUKOIL Group. LUKOIL Group entities employs over 100 thousand people across the globe – in Russia, Europe, Asia, Africa, and the Americas (more than 30 countries worldwide). LUKOIL stays true to its mission of making the energy of natural resources serve the interests of and provide benefits to humankind. We strive for technological leadership that is based on an ecological balance so that all of us can share in a prosperous future.
LUKOIL Group’s operations and financial activities are coordinated from its head office located in Moscow in the Russian Federation. We divide our operations into three business segments:
Exploration and production
The Company has a high-quality portfolio of assets, diversified both geographically and by type of reserves. Our proved reserves of oil and gas are mostly conventional. In 2020, they amounted to 15.4 billion
LUKOIL Group’s oil and gas condensate production in 2020, excluding the West Qurna-2 project, was 77.2 million tonnes, 10.1 percent lower than in 2019. This decrease is attributable to the OPEC+ agreement and the impact of the COVID-19 pandemic on global demand for hydrocarbons. Despite a sharp decline in oil prices and external restrictions on production output, we continued with our forward-looking strategy based on the development of priority projects in Western Siberia, the Caspian Sea, and the Komi Republic. During the year the Company launched oil production at nine new fields in Western Siberia, the Volga Region, the Urals, and Timan-Pechora.
Refining, marketing and distribution
This business segment includes
In 2020, refinery throughput at LUKOIL’s refineries decreased by 15 percent compared to 2019, following the optimization of some refineries’ utilization rates amid lower demand for oil products and refining margins caused by the COVID-19 pandemic, as well as to scheduled maintenance at four refineries. Despite the challenging situation, we continued to build a delayed coking facility and isomerization unit at the Nizhny Novgorod refinery and moved forward with projects to boost energy efficiency at European refineries.
The output of fuel oil decreases, while the share of light products and low-sulfur marine fuel with enhanced environmental properties continues to grow. LUKOIL continues to develop new formulas for oils and lubricants. In 2020, petrochemical output was up by 8 percent compared to 2019, mainly due to increased utilization at the Stavrolen complex after repairs. In 2020, the Company continued designing polypropylene production complexes at the Nizhny Novgorod Refinery and the refinery in Bulgaria.
The Power Generation business sector is represented by a complete vertically integrated chain, from generation to transmission and distribution of heat and power to external consumers (commercial power generation) and for operational needs (supporting power generation). The aggregate installed capacity of our power generating
The Corporate and Other business segment consists of PJSC LUKOIL and other entities. One of the main functions of the Corporate center is to coordinate and manage organizational, investment, and financial processes at the Company’s subsidiaries. A full list of LUKOIL Group entities in accordance with IFRS can be found in .
|Revenue, RUB billion||8,036||7,841||5,639|
|EBITDA, RUB billion||1,115||1,236||687|
|Total debt to EBITDA, %||48||45||96|
|Capital expenditures, RUB billion||452||450||495|
|Free cash flow, RUB billion||555||702||281|
|Research and development costs, RUB billion||6||6||5|
|Number of patents received||37||30||25|
|Labor productivity, RUB million / person||78||77||56|
|Production of oil and gas condensate (including the share in associates), million barrels of oil equivalent||644||646||590|
|Production of oil and gas condensate (including the share in associates), thousand tonnes||87,124||87,488||80,049|
|Gas production, million cubic meters||33,543||35,046||29,005|
| Output of petroleum products, ||70,188||69,296||54,964|
|Lubricants production (full cycle), thousand tonnes||961||963||923|
|Output of marketable petrochemicals, thousand tonnes||1,246||1,137||1,229|