ANNUAL REPORT 2005 - Lukoil

FINANCIAL ACCOUNTS
OAO LUKOIL
Consolidated Statements of Income
For the years ended December 31, 2005, 2004 and 2003
(Millions of US dollars, unless otherwise noted)
Revenues
Note 2005 2004 2003
Sales (including excise and export tariffs) 23 55,774 33,845 22,118
Equity share in income of affiliates 7 441 213 181
Total revenues 56,215 34,058 22,299
Costs and other deductions
Operating expenses (3,487) (2,880) (2,546)
Cost of purchased crude oil, petroleum and chemical
products (19,398) (10,124) (5,909)
Transportation expenses (3,519) (2,784) (2,052)
Selling, general and administrative expenses (2,578) (2,024) (1,800)
Depreciation, depletion and amortization (1,315) (1,075) (920)
Taxes other than income taxes 13 (6,334) (3,505) (2,456)
Excise and export tariffs (9,931) (5,248) (2,954)
Exploration expenses (317) (171) (136)
Gain from sale of interest in Azeri Chirag Guneshli 10 - - 1,130
Gain (loss) on disposals and impairments of assets 52 (213) (69)
Income from operating activities 9,388 6,034 4,587
Interest expense (275) (300) (273)
Interest and dividend income 96 180 139
Currency translation (loss) gain (134) 135 148
Other non-operating (expense) income (44) 21 11
Minority interest (121) (62) (36)
Income before income taxes 8,910 6,008 4,576
Current income taxes (2,301) (1,614) (939)
Deferred income taxes (166) (146) (68)
Total income tax expense 13 (2,467) (1,760) (1,007)
Income before cumulative effect of change
in accounting principle 6,443 4,248 3,569
Cumulative effect of change in accounting
principle, net of tax 2 - - 132
Net income 6,443 4,248 3,701
Per share of common stock (US dollars):
Income before cumulative effect of change
in accounting principle
Basic 15 7.91 5.20 4.36
Diluted 15 7.79 5.13 4.30
Net Income
Basic 15 7.91 5.20 4.52
Diluted 15 7.79 5.13 4.45
The accompanying notes are an integral part of these consolidated financial statements.
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