Russian oil producer Lukoil has reported a profit of $2.59bn (RUR192.5bn) in the third quarter of 2021, making a 119% increase from the $675m (RUR50.4bn) profit from the previous year.

At the end of the most recent quarter, the firm reported sales of $34.67bn (RUB2,588.7bn), a 55.9% jump from the previous year.

The increase in sales has been attributed to higher prices for crude oil and refined products, as well as increased production of hydrocarbon and throughput volumes at its refineries.

The company’s EBITDA stood at $4.75bn (RUB355.2bn) in the latest quarter that ended on 30 September. In the corresponding quarter a year ago, the firm reported EBITDA of $2.70bn (RUB202.2bn).

Lukoil said that the EBITDA surge within Russia was due to increased production volumes as a result of changes in external limitations under the OPEC+ agreement, and higher oil prices. Outside of Russia, other company’s profits grew primarily due to gas production recovery in Uzbekistan and higher gas prices.

In Uzbekistan, Lukoil operates the Kandym-Khauzak-Shady project and South-West Gissar project under production sharing contracts.

Furthermore, capital expenditure and free cash flow in the third quarter of 2021 stood at $1.26bn (RUR94.3bn) and $3.04bn (RUR227.7bn), respectively.

The firm anticipates that the oil output will reach pre-pandemic levels in 2023.

During the next three years, the company plans to produce 83-84 million tonnes of oil a year in Russia, reported Reuters.

The oil company also plans to invest around $7.36bn (RUR550bn) in 2022. This, however, does not include investment in the West Qurna-2 project in Iraq.

In September 2021, Lukoil agreed to purchase a 25% stake in the Shallow Water Absheron Peninsula (SWAP) exploration project offshore Azerbaijan from oil major BP .

With a 25% stake, BP will serve as operator in the SWAP production sharing agreement during the exploration period.

The remaining 50% stake is held by Socar, Azerbaijan’s state-owned oil and gas company.