Lukoil Bolsters Performance with Strong First Quarter Results

The Russian firm, Lukoil, which is a well known player in the lubricants market has said that it has posted strong results for the January-June period with sales of lubricants and grease increasing by 15 per cent. This growth was primarily driven by the growth of its high-margin sales and a growing number of international approvals for the products in its range.

According to a report in Lube Report, in the first half of 2016 the total sales for both lubricants and grease increased to 435,000 tons, an increase of 15 percent for the corresponding period last year. The sales of domestic motor oils increased by 10 per cent while those of industrial oil increased by 20 percent, when compared to the figures for the same period last year.

According to Lukoil, the share of the company’s products which have OEM approvals increased by 12 percent. The recent sales achievement marks a historical record for the company when it comes to premium product, high-margin sales. It is the outcome of many factors including growing emphasis on research and development, continuous expansion of its product portfolio, successful approval applications, and increased factory fill deals.

“LLK-International General Director Maxim Donde said that the company is persistently curtailing the  production of products that no longer confirm to the requirements of the leading original equipment manufacturers while adding new products that satisfy the best global practices. As of now, Lukoil has received over 1,000 approvals from international automotive, industrial and marine OEMs. It can also successfully match any class of imported lubricants which are present in the Russian market.

In 2015, Lukoil manufactured about 1 million tons of base oils, finished lubricants, greases and lube additives these products accounted for 40 percent of the combined Russian market for those products. Lukoil has nine production facilities spread across Russia, Belarus, Austria, Finland, Romania and Turkey, and also has 26 affiliated production sites.