MOSCOW: Russia’s leading oil producer Lukoil on Thursday reported a 23.09 per cent in net profits in the first quarter to $1.299 billion compared with the same period last year.

Analysts had been expecting a higher profit of around $1.38 billion.

The company said its results had been affected by the drop in oil prices, the increase in export taxes in Russia, an appreciation of the rouble against the dollar and higher transport costs.

Lukoil vice president Leonid Fedoun told a news conference the company had also gone to the capital markets to insure itself against the risks hanging over oil prices.

Lukoil said its taxes had increased by 9.8 per cent over the year to $5.6bn. Operating profit over the quarter dropped by 13.3pc to $2.432bn.—AFP