ANNUAL REPORT 2005 - Lukoil

FINANCIAL ACCOUNTS
YEAR ENDED DECEMBER 31, 2004 COMPARED TO THE YEAR ENDED DECEMBER 31, 2003
Results of operations
The table below details certain income and expense items from our consolidated statements of income for the periods
indicated. All items are presented in millions of US dollars, except for earnings per share data and percentage of changes
to 2003.
2004
Change
from 2003
2003
Revenues
Sales (including excise and export tariffs) 33,845 53.0% 22,118
Equity share in income of affiliates 213 17.7% 181
Total revenues 34,058 52.7% 22,299
Costs and other deductions
Operating expenses (2,880) 13.1% (2,546)
Cost of purchased crude oil, petroleum and chemical products (10,124) 71.3% (5,909)
Transportation expenses (2,784) 35.7% (2,052)
Selling, general and administrative expenses (2,024) 12.4% (1,800)
Depreciation, depletion and amortization (1,075) 16.8% (920)
Taxes other than income taxes (3,505) 42.7% (2,456)
Excise and export tariffs (5,248) 77.7% (2,954)
Exploration expenses (171) 25.7% (136)
Gain from sale of interest in the Azeri, Chirag, Guneshli project - - 1,130
Loss on disposals and impairments of assets (213) 208.7% (69)
Income from operating activities 6,034 31.5% 4,587
Interest expense (300) 9.9% (273)
Interest and dividend income 180 29.5% 139
Currency translation gain 135 (8.8)% 148
Other non-operating income 21 90.9% 11
Minority interest (62) 72.2% (36)
Income before income taxes 6,008 31.3% 4,576
Current income taxes (1,614) 71.9% (939)
Deferred income taxes (146) 114.7% (68)
Total income tax expense (1,760) 74.8% (1,007)
Net income 4,248 19.0% 3,569
Cumulative effect of change in accounting principle, net of tax - - 132
Net income 4,248 14.8% 3,701
118