Novatek Net Profits Down 40% in Q2
Russia's biggest LNG exporter Novatek suffered a 40% year-on-year slide in net profits in the second quarter, to rubles 41.6bn ($573mn), on weaker prices and low demand for gas as a result of the Covid-19 crisis, it said on July 29.
Revenues were down 34% at rubles 143.9bn, while expenses were only down 26% at rubles 116bn. Earnings before interest, tax, depreciation and amortisation (Ebitda) fell 38.5% to rubles 71.3bn, which VTB Capital said in a research note on July 30 was 37% below its forecast. The bank attributed Novatek's weaker numbers to reduced prices and demand in Russia and overseas, and a collapse in liquids sales.
Gas production was down 2.2% yr/yr in the three months, totalling 18.5bn m3. Novatek's flagship project is the 17mn mt/yr Yamal LNG export plant in the Russian Arctic, where it is partnered with France's Total and China's CNPC and Silk Road Fund.