Novatek Revenues Up (Russia)
NOVATEK said that its total revenues grew by 50.5% year-on-year to RR 176,064 million in 2011, from RR 117,024 million in 2010, reflecting the overall growth in the company’s hydrocarbon production and sales volumes as well as higher prices for both natural gas and liquid hydrocarbons.
Profit attributable to NOVATEK shareholders increased by 195.2% to RR 119,655million, as compared to RR 40,533 million, for the corresponding period in 2010, as a result of the higher revenues, our ability to decrease costs as a percentage of total revenues and the net gain realized on the disposal of a 20% equity interest in Yamal LNG.
Profit attributable to NOVATEK shareholders in 2011, excluding the net gain on disposal, increased by 44.6% to RR 56,707 million, as compared to RR 39,204 million in 2010In 2011, the company’s net natural gas production, including Novatek’s equity interest in Sibneftegas’ production, increased by 15,644 million cubic meters, or 42.0% compared to 2010, primarily due to an increase in production at the Yurkharovskoye and East-Tarkosalinskoye fields, as well as the consolidation of the compan’s share in Sibneftegas’ production.
Novatek’s total natural gas sales volumes increased by 16,550 million cubic meters, or 44.6%, in 2011 primarily due to the increase in net production. The compan’s liquids production increased by 494 thousand tons, or 13.7%, to 4,111 thousand tons compared to 3,617 thousand tons in 2010, due to the expansion of unstable gas condensate production capacity at the Yurkharovskoye field from the field’s on-going development program. During the year, liquids sales volumes increased by 710 thousand tons, or 20.9%, as a result of the increase in production and a decrease in inventory balances. Also, in 2010 Novatek launched its wholly owned gas condensate pipeline which required a one-time fill of approximately 36 thousand tons of unstable gas condensate.
At 31 December 2011, the company had 228 thousand tons of stable gas condensate in transit or storage and recognized as inventory until such time as it is delivered to customers as compared to 264 thousand tons as of 31 December 2010. In 2011, the company’s natural gas inventory balance as of 31 December 2011 decreased to 760 million cubic meters compared to 790 million cubic meters at the end of the 2010 period.