Russia’s largest independent natural gas producer Novatek reported a rise in its profit for the second quarter and the first six months of this year.
Profit for the second quarter increased to 32 billion Russian rubles ($508.9 million) from 3.2 billion Russian rubles reported in the corresponding quarter in 2017.
Profit for the first six months of 2018, increased 1.2 percent to 75.2 billion Russian rubles from 74.2 billion Russian rubles in 2017.
Revenues for the second quarter jumped 52 percent to 195.8 billion Russian rubles while the first half of the year revenue stood at 375.2 billion Russian rubles, 32.4 percent.
The increase in revenue was largely due to the production launch of the first liquefaction train at the Yamal LNG plant at the end of 2017, as well as an increase in average realized liquids and natural gas prices.
Natural gas sales rise
In the second quarter and the first half of 2018, our natural gas sales volumes totaled 15.1 billion and 35.4 billion cubic meters (bcm), representing increases of 5.3 percent and 6.9 percent, respectively, as compared to the corresponding periods in 2017.
The increase was due to the commencement of sales of LNG purchased from Yamal LNG to international markets from December 2017 and an increase in volumes sold in Russia.
As at the end of the second quarter of 2018, Novatek’s cumulative natural gas inventory balances mainly in the underground gas storage facilities, the gas transmission system and own pipeline infrastructure totaled 1.3 bcm as compared to 0.6 bcm at the end of the second quarter of 2017.