Russia’s second largest oil producer PAO Lukoil announced its quarterly earnings with profits dropping almost 71% in the third quarter citing weak oil prices, a holdup in export duties, and a plunge in production hurt results.

MOSCOW-based Lukoil’s net profit slipped to 54.8 billion rubles or $840 million, while revenue was down almost 11% to RUB1.3 trillion.

Meanwhile the oil giant’s earnings before interest, taxes, depreciation and amortization, or Ebitda, came down more than 22% to RUB165.9 billion.

PAO Lukoil said in an announcement that weaker revenue was result of dropping crude prices, as well as a holdup in increasing export duties, which kick in one month after any changes in the oil price and buoyed Russian oil companies’ results in the second quarter. However the company said damages from the duty were partially counterbalance by advanced refining margins in Russia.

Furthermore the company said hydrocarbon production plunged 11% in the third quarter to 2.1 million barrels a day. According to Lukoil that was largely the result of deteriorating reserves in Western Siberia, but that it scheduled to move capital to projects in other parts of Russia.

Capital spending was down almost 16% to RUB120 billion, which the company said was due to finished upgrades on its Russian refineries.

Lukoil is also poised to back the cut on oil production, if OPEC and Russia make a decision on output control.

Lukoil President Vagit Alekperov said in a statement “I have just come from the meeting with the Iraqi Minister. If they make a decision (OPEC and Russia – TASS) to reduce volumes of production on the territory of Russia we will support it,” he said.