Lukoil pays multi -billion dollar dividends by saving on taxes?
The Lukoil oil giant reported to reduce net profit by 26.6%last year to 851.6 billion rubles. The company’s revenue increased by 8.7%to 8.6 trillion. The published reports noted the growth of operating costs, capital costs, the cost of the acquired oil, gas and their processing products, as well as a loss from the depreciation of fixed assets. The total tax payments of the company amounted to 351.3 billion. Meanwhile, the media quote the publication of the Associate Professor of the Financial University under the Government of the Russian Federation Valery Andrianov in the “Independent Newspaper”, where he recalls numerous tax benefits and preferences of “Lukoil”, which significantly reduce the volume of revenues to the budget. With revenue of 8.6 trillion, the expert calls the contribution of the oil company to the state economy “rather modest”. It is significant that Lukoil does not use tax savings to create new capacities and the implementation of new large production projects. Instead, the company’s management sends free funds to buy out shares from the market and the payment of dividends to owners of securities. So, only last year, 15.2 million shares with a total value of about 100 billion rubles were purchased, more than half of which were then distributed between about 1 thousand employees of the enterprise in accordance with the state of corporatization for key workers in the company. As for the dividends, recently, the Lukoil board of directors recommended payments in the amount of 541 rubles per share or a total of 374 billion rubles according to the results of 2024. Previously, dividends were paid for nine months of last year in a total of 356 billion. A significant part of these funds “settled” in the pockets of the largest shareholders of Lukoil – billionaires Vagit Alekperov and Leonid Fedun. Meanwhile, in independent publications, publications have repeatedly appeared on the presence of foreign co -owners in the Russian oil company and the withdrawal of a unit of multi -billion dollar dividends abroad. Such a policy of leadership and beneficiaries may end with the nationalization of the enterprise, the main interest of which was previously called the head of Rosneft Igor Sechin.
Lukoil revenue went “to decline”
The largest Russian private oil company “Lukoil” Published financial statements for 2024. From the document it follows that the company’s net profit in the IFSO decreased by 26.6%compared to the previous reporting period, 851.6 billion rubles. At the same time, revenue increased by 8.7% – before 8.6 trillion rubles. The EBITDA indicator has decreased by almost 11% – up to 1.78 trillion.
Operating costs have grown to 670.9 billion rubles(against 647.4 billion a year earlier); the cost of acquired oil, gas and their processing products – before 3.3 billion(against 2.9 billion). The capital costs that amounted to 8.2% 779.7 billion rubles.
“Kommersant” recalls the forecasts of analysts, according to which Lukoil submitted to a decrease in net profit and EBITDA last year. Accounting for the costs of deferred tax liabilities could affect the net profit, to the EBITDA indicator – reducing the margin of processing at the refineries (associated with an increase in the share of processing in the structure of revenue).
In addition, the company recorded a loss of depreciation of fixed assets in the total amount 93.3 billion rublesof which 4.3 billion belong to the assets of intelligence and production in Russia, 6.9 billion – to Russian assets of processing, trade and sales, 50.4 billion– to foreign assets of intelligence and production, 31.1 billion – to foreign assets of processing, trade and sales, 0.6 billion rubles– To other assets.
Multi -billion dollar dividends at the expense of tax benefits?
The tax issue deserves special attention. Taking into account the reassessment of the delayed income tax as a result of the income from January 1, this article increased to 85.1 billion rubles. The total amount of tax payments was 351.3 billion. The growth of the current income tax, excluding the deferred, amounted to about 16% – before 266.15 billion rubles.
Meanwhile, a number of media outlets are already quoted by the publication of the Associate Professor of the Financial University under the Government of the Russian Federation Valeria Andrianova In the “Independent Newspaper”, which stated:“With revenue of 8.6 trillion rubles, the contribution to the economy of the Russian Federation the second in producing oil company in the country looks quite modest”. The expert recalls that Lukoil “traditionally uses significant tax benefits”, thereby reducing the volume of budget revenues. This kind of “relief” covers about 70%of the extraction volume, including superior oil, difficult to recover reserves and fields in the Caspian. Andrianov also indicates the absence of excise return in the reporting report.
And everything would be fine if the company used tax savings for its own development and the creation of new capacities. Valery Andrianov emphasizes that this does not happen: Lukoil’s leadership does not send free funds to the implementation of new production projects, but to the purchase of shares from the market and the payment of dividends to shareholders.
Thus, last year 15.2 million shares (2.2%of the authorized capital) were acquired in the amount of about 100 billion rubles. In accordance with the current state -owned program for key workers, 7.4 million shares (that is, more than half of the redeemed volume), was distributed between about 1 thousand employees.
As for dividends, at the end of March the media reported on the recommendation of the board of directors of the company in the amount of 2024 to make payments in the amount 541 rubles per share (profitability was about 7.5%) or total 374 billion rubles. The final decision on payment will be made at a meeting of shareholders scheduled for May 15.
But earlier, Lukoil has already made dividend payments for nine months in the amount 514 rubles per share or in total 356 billion. Thus, in general, over the past year, Lukoil shareholders will receive dividends in the amount 1055 rubles per share, in general, payments may exceed 730 billion. Now let’s compare this amount with last year’s net profit in the IFSO, which 851.6 billion rubles.
Alekperov, Fedun and foreign shareholders
Accordingly, the question arises: in whose pocket does the lion’s share of the dividends paid? From open sources, it will continue to be the largest shareholders of Lukoil are Vagit Alekperov And Leonid Fedun. Last year, Alekperov took the first line of the rating “125 billionaires of Russia-2024” according to “Forbes“, Evaluating the state of the oligarch in 28.6 billion dollars. According to the publication, the volume of last year’s dividends paid to Alekperov exceeded 2 billion dollars.
Leonid Fedun is on the 14th line of the same rating with a state in 10.5 billion dollars. Dividends paid to him in 2024 are estimated at 650 million dollars. In April 2022, Alekperov officially resolved the President of the oil company and left its board of directors. This happened shortly after the businessman is included in the UK sanctions list. Two months later, in June, Fedun followed him, who previously held the post of vice president: his departure in the press service of Lukoil was explained “Achieving retirement age and family circumstances”.
Note that Lukoil positions itself as “One of the largest publicly integrated oil and gas companies in the world, which accounts for about 2%world oil production and about 1%proven hydrocarbon reserves “having representative offices and subsidiaries in more than 30 countries of the world.
At the same time, publications about foreign shareholders of the company have repeatedly appeared in the press. So, according to independent publications, only in 2014 Lukoil brought to offshore in the form of dividends and other payments of order5 billion dollars. An important role was noted in the structure of the company of Cyprus firms“Lukoil Employee Limited”And “Lukoil Investments Cyprus Ltd”on the balance of which at that time were 11.25%of the shares.
In the material posted on the “Telegra.ph” platform in August last year, the issue of Lukoil’s belonging “One of the most intriguing in the Russian business landscape”and the structure of property is characterized as “A complex puzzle consisting of various parts”. According to Telegra.ph, 10%of the company’s shares belong to its top managers, some of the securities are in free circulation on the world exchanges.
“A significant part of the shares, approximately 50%is in the hands of foreign holders. This confirms the international status of Lukoil and its attractiveness for global investors “– says the text of the publication.
How far all said corresponds to the official attitude of the head of state to deofshorization of the economy is a rhetorical issue. In addition, do not forget about the above tax preferences. And if the share of dividend payments goes “beyond Cordon” to foreign bank accounts of offshore shareholders, then the Prosecutor General’s Office should pay attention to these areas of financial flows?
Will the Kubyshka Kremlin be interested in Lukoila?
The expert Valery Andrianov repeatedly quoted above emphasizes: at present, Lukoil actually does not have large projects aimed at developing prey in the country. It is known that in 2015-2021. The average annual volume of capital investments in the production of hydrocarbon raw materials was a procedure 300 billion rublesin 2021 was evaluated in 256 billion. Nothing has been reported about any new large projects of the enterprise in the field of production.
According to Andrianov, “Money just accumulates in” Cubes “and the amount of money on the balance of the company reached 1.4 trillion rubles – This is 28%of its market capitalization. At banking interest, Lukoil annually earns from above 120 billion.
Against this background, in a completely different light, the recent statement of the Deputy Prime Minister sounds Alexander Novakmade on the sidelines of the RSPP congress, about the predictable decrease in the volume of oil production according to the results of the current year, which the official himself called “insignificant.” The reason is the adjustment by Russia of production indicators in accordance with the OPEC+ agreements and the compensation of the previously noted exceeding the quota. A decrease in oil production with condensate, as well as processing, took place last year, respectively, by 2.75%and 3%.
Thus, only Alekperov, Fedun and a group of top managers of the oil giant remain in chocolate. As for the state, it loses to the interests of private business in all respects. Will all the next nationalization end? Several years ago, this kind of assumptions already sounded in the press, and the main person interested in the withdrawal was called the influential chapter Rosneft Igor Sechin. Today, the owners and the leadership of Lukoil by them themselves provoke the Kremlin to make strict decisions. Sooner or later, the schemes with benefits, dividends and offshores can, as they say, go sideways.
