Russia: Novatek Sees Revenue Growth

Russia’s largest independent gas producer and the owner of the Yamal LNG project Novatek said its total revenues in the second quarter and first half 2013 increased by 29.2% and 40.0%, respectively, as compared to the corresponding periods in 2012.

The growth in total revenues was mainly due to increase in natural gas sales volumes and higher average natural gas prices as a result of significant expansion of the share of end-users in our total gas volumes sales mix. Revenues growth in the first half 2013 was also due to an increase in liquid hydrocarbon sales volumes.

In the second quarter 2013, Novatek recorded a year-on-year increase of 3.6% in EBITDA, which amounted to RR 21.1 billion. The lower EBITDA growth rate was mainly due to a decrease in the share of liquid hydrocarbons in the conpamyn’s total sales volumes mix, which was driven by an increase in inventory balances of stable gas condensate and the corresponding oil products processed following the launch of the first stage of the Gas Condensate Fractionation and Transshipment Complex at the port of Ust-Luga in late June. In the first half 2013, EBITDA amounted to RR 54.2 billion, representing an increase of 21.4% as compared with the first half 2012.

Profit attributable to shareholders of Novatek n the second quarter 2013 increased to  RR 11.6 billion (RR 3.83 per share), or by 20.1%, as compared to the second quarter 2012. Profit attributable to shareholders of Novatek in the first half 2013 increased to RR 34.4 billion (RR 11.36 per share), or by 11.4%, as compared to the first half 2012. The dynamics of profit was impacted by non-cash foreign exchange effect.

In the second quarter and first half 2013, Novatek’s natural gas sales volumes increased by 8.8% and 13.1%, respectively, as compared to the corresponding periods in 2012, due to growth in production at the Yurkharovskoye field and an increase in purchases of natural gas. At 30 June 2013, the company recorded 1,411 million cubic meters of natural gas as inventory in underground storages as compared to 1,050 million cubic meters in the corresponding period of 2012.