Russia: Novatek Revenues Up
OAO NOVATEK, Russia’s largest independent gas producer, released its consolidated interim condensed financial information as of and for the three months ended 31 March 2012.
In the first quarter of 2012, the company’s total revenues grew by 21.1% to RR 54,373 million compared to RR 44,894 million in the corresponding period of 2011, primarily due to an increase in natural gas sales volumes and average prices as a result of significantly expanding the share of natural gas sold to end-customers.
NOVATEK recorded an increase of 13.2% in profit attributable to NOVATEK shareholders, which amounted to RR 21,245 million or RR 7.00 per share, as compared to the corresponding period in 2011 that was primarily due to higher oil and gas sales and foreign exchange gains.
In the first quarter 2012, sales volumes of natural gas increased compared to the corresponding period in 2011 due to production growth at our three core fields resulting from the ongoing development activities at the Yurkharovskoye field as well as greater utilization of production capacity at the Khancheyskoye and East-Tarkosalinskoye fields due to increased natural gas demand in the domestic market.
In the first quarter 2012,the company’s total liquids production volumes increased by 5.5% compared to the corresponding period in 2011. However, the company’s sales volumes of liquids decreased by 5.5% in the first quarter 2012 due to an increase in inventory balances of stable gas condensate volumes recognized as goods in transit or storage at the end of the reporting period, compared to the first quarter 2011.
At 31 March 2012, NOVATEK recorded 352 thousand tons of stable gas condensate in transit or storage and recognized as inventory as compared to 228 thousand tons as at 31 December 2011.