Lukoil Romania, the domestic subsidiary of Russia?s Lukoil group, registered turnover worth 1.035 billion dollars (673.14m euros) in the first six months of this year, up 34% against the same period last year, despite the company's sales volumes having sh

However, procurement expenses also increased and had a negative impact on the company's net income, after Lukoil Romania lost 33% of the net gains worth $17.6m (13.2 million euros), generated in the first six months of last year.

"As an oil company, it is impossible not to derive a higher turnover considering oil prices stood at 59.7 dollars per barrel in H1, 2007, and this year the average price climbed to 102.9 dollars. Operating income generated during this period stood at 34.7 million dollars (22.5m euros), 2.5 million dollars lower than our initial estimates and down 17% against the corresponding period of last year. In the first six months of this year, we posted net income worth 11.9 million dollars (7.7m euros), down 33% against the same period last year. Rising prices at the pump have a positive impact on turnover, but procurement expenses are going up, and have a negative impact over net income", says Constantin Tampiza, general manager of Lukoil Romania.

Expenses per tonne of sold fuel rose by 13 dollars against the same period last year.

"Denominated in total volumes, sales in tonnes stood at the level of 98% of what we registered in the same period of last year. Nevertheless, we managed at the level of sales through filling stations to generate a 4% increase. Overall, we sold around 700,000 tonnes of fuel", Tampiza also specified.

He says the firm will not earmark funds for the expansion of the filling station network this year, with the 300 outlets through which the Russian company controls 25% of the domestic market are sufficient for the targets to be met