About the company LUKOIL
Security pageLUKOIL is Russia's largest private oil company and one of the few in the country built on a fully vertical model: it produces oil, refines it itself and sells the fuel itself through its own network of filling stations. The shares trade on the Moscow Exchange under the ticker LKOH.
What the company does
Vertical integration is not corporate rhetoric but a way of smoothing out the cycle. When oil gets more expensive, production makes the money; when it gets cheaper, refining and marketing receive their feedstock at a lower cost, and their margins widen. A company that has nothing but production goes through a fall in prices far more painfully.
Revenue comes from the sale of crude oil and petroleum products, but profit depends heavily on what is left after taxes: in Russia the industry is subject to a mineral extraction tax and export duties calculated by formulas tied to the world price. In effect the state takes a considerable part of any price increase, and the sensitivity of profit to the barrel is lower than the headlines suggest.
What sets the company apart is its attitude to shareholders: a consistent dividend policy linked to free cash flow, and regular buybacks of its own shares.
Business lines
Production
Fields in Western Siberia, the Volga region, the Caspian and the Arctic.
Refining
Oil refineries in Russia and abroad producing gasoline, diesel and petrochemicals.
Marketing
One of the largest filling station networks in the country and wholesale supplies of petroleum products.
Power generation
Electricity generation, mainly for the company's own needs and for the regions where it operates.
History
- 1991A state oil concern is created, bringing together three West Siberian production enterprises — the company's name was derived from their names.
- 1993–1995Transformation into a joint-stock company and privatisation; the company becomes private.
- 2000-еAcquisition of refining and marketing assets abroad, entry into international markets.
- 2010-еA focus on dividends and share buybacks as the main way of returning money to shareholders.
- 2022Sanctions and the embargo redraw export routes; part of the foreign assets comes under restrictions.
Business review
Strengths and weaknesses describe the business itself. Opportunities and threats describe what may happen around it.
Strengths
- Private management and the reputation of a company that consistently returns money to shareholders.
- A low debt burden and a reserve of cash.
- A high share of refining and the company's own retail network, which smooth out the commodity cycle.
Weaknesses
- Sanctions have restricted access to foreign assets, technologies and settlements.
- Profit depends on the world oil price and on the rouble exchange rate, neither of which the company controls.
- The tax regime in the industry changes more often than the investment cycle.
Opportunities
- Redirecting exports to Asian markets preserves volumes, albeit with different logistics.
- A high share of refining inside the country reduces dependence on crude oil exports.
- The accumulated cash position makes it possible to continue share buybacks and payouts to shareholders.
- A weaker rouble increases rouble revenue while the price of a barrel stays unchanged.
Threats
- The oil price does not depend on the company at all, and the tax formula takes a considerable part of any increase in it.
- Sanctions restrictions complicate exports, the insurance of shipments and the operation of foreign assets.
- Output limits under agreements between producers hold volumes back regardless of demand.
- The fields are mature: sustaining production requires ever greater investment per well.
Frequently asked questions
What does LUKOIL do?
The company produces oil and gas, refines the feedstock at its own plants and sells fuel — wholesale and through a network of filling stations. This chain "from the wellhead to the tank" is what is called vertical integration.
Is it a state-owned company or a private one?
Private. LUKOIL is Russia's largest non-state oil company; the state does not hold a controlling stake in it.
Why does an oil company's profit not grow as strongly as the oil price?
Because taxes take a considerable part of the price increase: the mineral extraction tax rate and the export duty are calculated by formulas tied to world quotations. The company gets a smaller share of the rise in price than the chart of the barrel might suggest.
Does LUKOIL pay dividends?
Yes, the company is known for one of the most consistent dividend records on the Russian market: payouts are linked to free cash flow and are made twice a year. The specific amounts and dates are in the dividends section of the company profile.
Issuer profile
What the company does
The company is classified under the «Oil & gas» sector, using the taxonomy we apply when comparing securities with one another.
The same sector holds 21 issuers on the platform, and their figures are computed by one method — so this company's revenue, profit and leverage can be compared with them directly.
The company is registered in Russia and identified in regulatory disclosure by tax number 7708004767. That number locates its statements in state registries regardless of how its name is spelled — and the spelling differs even between official documents.
Listed securities
The issuer has 5 securities listed: 1 share class, 4 bond issues. All are shown on this page, including those trading in different modes and different currencies.
Across Moscow Exchange quotation list levels the securities split as follows: 1 at level 1, 4 at level 3. The level reflects how strict the disclosure, turnover and track-record requirements the issue meets are — not how attractive the investment is.
Bond issues
The nearest issue matures on 2 November 2026 and the farthest on 26 October 2031. That spread means the issuer borrows both short and long, and the yields of these issues will differ for the simple reason that the money is lent for different terms.
The largest issue by face value is RU000A1059N9, with a face value of 1,000.00 $ per bond, maturing on 2 November 2026. Bond prices in the order book are quoted as a percentage of face value, so a quote of 98.4 means 98.4 % of that amount rather than an absolute price.
Dividend history
Between 2015 and 2025 the issuer made 20 payouts whose record date has already passed. A board recommendation or a forecast does not enter this history, because no money has been paid on them yet.
The most recent payout was 541.00 ₽ per security with a record date of 3 June 2025. That is the amount before tax: the broker withholds it on crediting, so less arrives in the account.
Financial statements
The most recent annual report we hold is for 2026 under RAS. The standard is named for a reason: IFRS and RAS compute the same quantities by different rules, disagree by design and are never averaged.
Revenue for 2026 was 523.10B ₽.
That is 84.9 % less than in 2025, when revenue was 3.45T ₽. The comparison stays within one reporting standard — otherwise the decline could turn out to be a change of accounting rules and nothing more.
Net income for 2026 was 61.80B ₽.
Of every unit of revenue, 11.8 % remained as net income. This is the ratio of two figures already named above rather than a separate line from the report: comparing it across companies is meaningful only within one sector and one reporting standard.
Equity stands at 1.17T ₽ against total assets of 2.69T ₽. The difference between the two is the company's liabilities, and the larger it is relative to equity, the more the business depends on borrowed money.
This section is assembled from our own data on the company's securities, dividends and financial statements. It is a description, not a recommendation.