The oil production was 21.2mn tons, showing an increase of 1.5% yoy.
Gas production was increased by 12% yoy to 9bn cub m which is still associated with the development of Uzbek projects. The company marks the launch of the second stage of the gas processing complex at the Kandym project, where production increased by 33% yoy.
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Fig. 1. Operational results |
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|
unit |
1Q2018 |
1Q2019 |
yoy |
4кв2018 |
qoq |
|
Production: |
|
|
|
|
|
|
|
hydrocarbon |
ths boepd |
2 286 |
2 379 |
4.07% |
2 371 |
0.34% |
|
oil |
ths tons |
20 926 |
21 244 |
1.52% |
21 832 |
-2.69% |
|
gas |
mn cubic m |
7 999 |
8 976 |
12.21% |
8 905 |
0.80% |
|
refinery throughput at refineries |
ths tons |
16 113 |
16 668 |
3.44% |
17 002 |
-1.96% |
|
Source: Company data |
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Refining of crude oil increased by 3.4% yoy, reaching 16mn tons. Processing in Russia in average daily terms increased by 2.9% yoy to 11mn tons due to an increase in the load of the Nizhny Novgorod refinery.
Our view
Preliminary operating results, in our opinion, demonstrate a fairly stable dynamics and are able to ensure the achievement of our target forecasts for 2019. We note the expected progress in both gas and oil growth projects, showing a noticeable increase in production: Filanovskoye (+ 18% yoy), Korchagin (+ 27% yoy) and the development of the Yaregskoye field (+ 16% yoy ). Preliminary performance met our expectations for the Upstream segment, and we maintain our recommendation to Buy shares of Lukoil with 12M TP of 6792rub/share.
