NEW YORK -- Lukoil Americas, a unit of privately held Russian oil company Lukoil, said it does not expect to break even until at least 2008 on the gas stations it operates in the United States.
We have not reached profitability so far, Leonid Fedun, a vice president for Russia's largest oil producer, told Reuters.
Lukoil operates 2,000 stations in 13 Northeast states, mostly under the Getty name, including the almost 800 stations owned by ConocoPhillips.
Fedun said it supplies up to 20% of their needs with [image-nocss] refined products shipped from Europe. He said while Lukoil would consider buying a U.S. refinery, it was too expensive now. He had no comment on whether Lukoil had any interest in buying Lyondell-Citgo's Houston refinery, which is on the block.
Lukoil reported fourth-quarter net income of $1.64 million on revenue of $15.64 billion, added a MarketWatch report.
The company said it hopes to expand an upstream joint venture with ConocoPhillips to include the refining and distribution aspect of the business, according to the report.
Lukoil still intends to acquire refining capacity in the U.S. in the long term, but high margins have driven up asset values, making potential acquisitions expensive. The most profitable way to operate is to have your own supply chain intact, Fedun said.
As part of its deal with ConocoPhilips, Lukoil is bringing its internal controls and financial operations in line with U.S. regulations. In addition, Lukoil is working to extend its oil field license agreements in order to book more reserves in accordance with U.S. Security and Exchange Commission requirements. After the venture finishes it current projects, there's nothing keeping us from seeking a listing on a U.S. stock exchange, Fedun said.
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