Novatek 2Q Profits up 10%

Russia’s largest independent gas producer Novatek July 27 reported 2Q profits of 45.9bn rubles ($695mn), up 9.6% year on year, on total revenues up 13.5% at 127.4bn rubles.

Novatek’s gas production and purchases were 15.4bn m^³, down slightly from 15.5bn m³ in 2Q 2015. Gas production by itself was 14.1bn m³, down from 14.5bn m³.

Liquids production and purchases were 4.1mn metric tons in 2Q 2016, 42% higher than the 2.9mn mt in the same 2015 period, thanks to the launch of the Yarudeiskoe oil field in December 2015 and the Termokarstovoe and Yaro-Yakhinskoe gas and gas condensate fields in the first half 2015.

Yamal LNG under construction (Credit: Novatek)

Novatek supplied its first LNG cargo earlier this month: a Trinidadian cargo, traded in order to gain expertise prior to the launch of the now fully-funded Yamal LNG venture. First LNG from Yamal is due in 2017. It's worth recalling that Novatek’s 1Q 2016 pre-exceptional profits were boosted by proceeds from the sale of a 9.9% stake in the Yamal LNG joint venture to China’s Silk Road Fund.

Mark Smedley