Russia: Novatek Gas Sales Climb

Novatek of Russia said its total revenues in the second quarter and first half 2012 increased by 11.1% and 16.4%, as compared to the corresponding periods in 2011, primarily due to higher natural gas and liquid hydrocarbons’ sales volumes.

Profit from operations increased by 1.4% and 3.3% in the second quarter and first half 2012, compared to the corresponding periods in 2011.

Profit attributable to shareholders of Novatek in the second quarter and first half 2012, decreased by 32.6% and 6.6%, resulting in earnings per share of RR 3.18 and RR 10.19, primarily due to non-cash foreign exchange losses in the amount of RR 5,299 million in the second quarter 2012 as compared to a non-cash gain of RR 766 million in the prior reporting period.

Profit attributable to shareholders of Novatek in the second quarter 2012, excluding the effect of foreign exchange loss, increased to RR 14,962 million, or 10.3%, from RR 13,570 million in the corresponding period in 2011.

In the second quarter and first half 2012, the company’s natural gas sales volumes increased by 13.7% and 14.2%, compared to the corresponding periods in 2011. The increases were primarily due to the growth in Novatek’s production capacity combined with purchases of natural gas from the company’s joint venture and other parties.

At 30 June 2012, the company recorded 1,050 million cubic meters of natural gas as inventory in underground storage as compared to 203 million cubic meters in the corresponding period.

In the second quarter 2012, the company’s total liquids’ sales volumes increased by 9.2% compared to the corresponding periods in 2011, primarily due to an increase in liquid production from the East Tarkosalinskoye field and purchases of unstable gas condensate purchases from OOO SeverEnergia, Novatek’s joint venture, after the launch of the first stage development at the Samburgskoye field in April 2012 as well as a decrease in liquids inventory balance.

In first half 2012, the company’s total liquids’ sales volumes increased by 1.9% compared to the corresponding period in 2011 due to gas condensate purchases and increase in total liquids production.

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LNG World News Staff, August 12, 2012