Russia's largest oil producer said its net profit fell 48.9%, quarter-on-quarter, in October-December 2006, to 4.04 billion rubles (about $155.4 million).
LUKoil attributed its net profit decline in the fourth quarter of 2006 to the growth of commercial and managerial costs, largely caused by increased transport expenses.
At the same time, transport expenses grew due to an increase in the share of petroleum product exports in the company's sales structure and higher transport tariffs, LUKoil said in a statement.
Net profit also declined due to lower gross profit as average market prices of oil and petroleum products declined while export duties increased in the fourth quarter of 2006, the statement said.
LUKoil is the world's second-largest oil producer by proven hydrocarbon reserves, estimated at 20.3 billion barrels of oil equivalent, including about 16 billion barrels of oil and 25 trillion cubic feet of natural gas.
