Novatek profits more than double in Q2
Profits at Novatek more than doubled year on year to 99.3bn rubles ($1.35bn) in the second quarter, the Russian LNG exporter reported on July 28, on the back of a recovery in prices and a rebound in output following pandemic lows.
Revenues reached 264.5bn rubles in the three months ending June 30, versus 143.9bn rubles a year earlier, while Ebitda surged to 163.2bn rubles from 71.3bn. Production averaged 1.72mn barrels of oil equivalent/day in the three months, compared with 1.6mn boe/d in Q2 2020. The increase in income was also supported by a decrease in capital expenditure to 47.4bn rubles from 61.3bn.
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The global economy is gradually recovering, Novatek said, which is one factor behind historically high gas prices in the Asian and European markets where Novatek supplies its gas. But the exporter said there were questions about whether this recovery was sustainable, given rising COVID-19 infection rates and new virus strains emerging.
Novatek is bullish on long-term prospects for global gas demand, and aims to ramp up its LNG supply to up to 70mn metric tons/year by the end of the decade, from around 20mn mt/yr currently. Novatek deputy chairman Mark Gyetvay discussed the company's strategy in an interview on July 2 with NGW.