News

Advanced Search

Lukoil Diamond Revenue Down After Mine Sale

Aug 30, 2017 5:09 AM   By Rapaport News
Comment Comment Email Email Print Print Facebook Facebook Twitter Twitter Share Share


RAPAPORT... Lukoil’s diamond sales dropped in both the second quarter and first half due to the sale of its sole diamond-producing asset in May, the oil producer reported Tuesday.

The company’s diamond revenue came to $17 million (RUB 1 billion) for the quarter and $102.2 million (RUB 6 billion) for the six months that ended June 30 — down from $51.1 million (RUB 3 billion) and $187.4 million (RUB 11 billion) respectively in the same periods last year.

Lukoil, Russia’s largest oil miner, sold its Grib diamond project in the country’s Arkhangelsk region to Russian investment group Otkritie Holding in a $1.45 billion cash deal that concluded during the quarter. Lukoil had sourced all its diamonds from the Grib asset.

Proceeds from the sale added $647.4 million (RUB 38 billion) to the company’s profit after taxes, it said.

Production at Grib commenced in September 2014, making it the country’s largest diamond mining operation outside of Alrosa’s portfolio. Initial estimates put full annual production at 4.5 million carats.

Image: M DOGAN/Shutterstock
Tags: grib, Grib Diamond Mine, lukoil, mining, oil, Otkritie Holding, Rapaport News, Rough Diamonds
Similar Articles
Alrosa International Mine 150Alrosa Mine Restarts Following Virus Closure
Jun 30, 2020
Alrosa has resumed operations at its International underground mine following a brief suspension after several employees
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First
© Copyright 1978-2020 by Rapaport USA Inc. All rights reserved. Index®, RapNet®, Rapaport®, PriceGrid™, Diamonds.Net™, and JNS®; are registered TradeMarks.
While the information presented is from sources we believe reliable, we do not guarantee the accuracy or validity of any information presented by Rapaport or the views expressed by users of our internet service.