With its well diversified distribution network (5,556 gas stations, and 142 tank farms in 22 countries worldwide) LUKOIL sells its petroleum products on the retail market. In this respect, in 2015 the total retail sales of petroleum products made 19.4 million tons, which is a 3.1% decline vs. 2014. The decline is conditioned by a reduction in purchasing power and the decrease in the number of gas stations as part of optimizing the marketing assets that are not integrated into the common business model.
RETAIL SALES OF PETROLEUM PRODUCTS
Number gas stations
*Share in the regions of the Company’s presence
Following 2015, LICARD system sales in Russia with the use of fuel cards (cashless settlements for corporate entities) and customer loyalty cards (individuals) came to more than RUB 279 billion representing a total of about 6.5 million tons of petroleum products sold.
In 2015, as part of the downstream development strategy, the Company continued its program for non-fuel sales promotion. Sales of non-fuel products and services in Russia came to RUB 14.5 billion in 2015. Commercial profit from sales of non-fuel products and services in Russia made up RUB 3,116 million, which is a 25% increase vs. 2014. Sales of non-fuel products and services by the Group’s gas stations abroad reached RUB 21,0 billion in 2015, which is a 15% increase vs. 2014. The Company is planning to increase the non-fuel proceeds by optimizing the mix of products, improving the gas station fast food system, proactive marketing strategy, expansion of the range of supplementary services, cooperation with major suppliers, use of the best trading practices, and better customer service.
The year 2015 witnessed stable growth in the ECTO branded motor fuel sales. The project’s geography is expanding, more than a half of the existing gas stations of LUKOIL in Russia offer ECTO fuels. In 2015, Russian sales came to 4.9 million tons, which is a 7% increase vs. 2014 figure. The share of ECTO fuels represents 51% of the total retail sales of motor fuels in Russia (up from 47% in 2014), while the share of diesel fuel totaled 81% and that of automobile gasoline was 35%.
Throughout 2015 LUKOIL has continued implementation of its measures focused on promoting ECTO branded fuels abroad. The 2015 retail sales of ECTO fuels via the Company’s international retail network totaled 1.7 million tons.