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. Last Updated: 07/27/2016

Yukos PostsQ1 Profits Of $596M

Yukos posted a consolidated net profit of $596 million in the first quarter of this year, satisfying analysts' expectations.

Thursday's announcement by the No. 2 oil major was the first time a Russian oil company reported quarterly results audited to generally accepted accounting principles, or GAAP.

Because this is Yukos' first quarterly report, it is technically impossible to compare this year's performance with last year's, market analysts said. However, the quarterly average for last year's net profit was $807 million.

After last year's banner results, oil companies have been beset by worsening conditions on world markets. Oil prices are lower this year and are expected to continue their gradual descent.

Yukos reported sales revenues of $2.4 billion and a 16 percent increase in oil production compared with the same period last year. In the first quarter, Yukos pumped 98 million barrels, or 13.4 million tons.

"Yukos' expanded output and continuing focus on cost reduction have enabled us to partly make up for the negative impact of lower crude oil prices, higher export duties and increased costs," Yukos CEO Mikhail Khodorkovsky said in a statement.

Yukos stock fell 0.7 percent Thursday, closing at $3.57.

The company has prepared annual GAAP results since 1997 and raked in record profits of $3.23 billion in 2000.

Yukos is set on aggressive expansion, and its first-quarter production growth is above the industry average.