Russia: Novatek Sees Profit Rise

Novatek of Russia, operator of the Yamal LNG project, reported that the company’s total revenues grew by 48.9% to RR 80.6 billion in the first quarter of 2013, compared to RR 54.1 billion in the corresponding period of 2012. The growth was due to an increase in hydrocarbon sales volumes and higher average natural gas prices, which was mainly driven by significant expansion of the share of end-users in the company’s total gas volumes sales mix.

Novatek recorded a year-on-year increase of 35.9% in EBITDA, which amounted to RR 32.9 billion in the first quarter 2013.

Profit attributable to Novatek shareholders increased to RR 22.7 billion (RR 7.49 per share), or by 6.9% as compared to the first quarter 2012. The overall profit growth for the reporting period was offset by a non-cash foreign exchange loss in the first quarter 2013 as compared to a non-cash gain in the same period of 2012.

In the first quarter 2013, Novatek’s natural gas sales volumes increased to 18.7 billion cubic meters, or by 16.8% as compared to the corresponding period of 2012, due to growth in production at the Yurkharovskoye field following the launch of the fourth stage of Phase Two development of the field, as well as an increase in purchases of natural gas. As at 31 March 2013, the total amount of natural gas injected into underground gas storage facilities and reflected as inventory aggregated 33 million cubic meters (mmcm), as compared with 1,096 mmcm at the year-end 2012.