(Reuters) - Russia's No.2 oil producer LUKOIL shed more than two thirds of second-quarter net profit compared with last year and undershot forecasts, hit by lower oil prices, a weaker rouble and a bigger tax bill.
Net profit was just over USD1 billion (631 million pounds), against the average of analysts' forecasts of USD2.34 billion.
However, LUKOIL performed better than peer Rosneft, which posted a surprise second-quarter loss this month, thanks to high exposure to refining which benefited from a lower export duty and high margins.
The company said current profit tax jumped to USD1.1 billion in April-June 2012 from $649 million a year earlier following a tax rate increase as the government replenishes its coffers after an election-related spending spree.
Russian crude producers have been complaining over a high tax rate, set by the state, where oil and gas revenues accounts for a half of state budget proceeds.
LUKOIL has suffered from crude production decline due to depletion of West Siberia deposits, while its new South-Khylchuyu field disappointed with a double-digit output decline, attributed by the company to wrong geological assessments.
MRC