Novatek Profits from Start of Yamal LNG

Russian independent Novatek reported strong financial results for 2018 with all three LNG trains on line at Yamal in the far north on line, some exporting ahead of schedule. Commodity prices were also higher. Gas output was up 8.5% on 2017 and gas sales within Russia were also higher.

Total revenues amounted to rubles 831.8bn ($12.7bn), up 42.6% and profit attributable to shareholders rose to rubles 163.7bn or 4.7% compared with 2017. In 2018, Novatek said the profit was significantly impacted by "substantial non-cash foreign exchange effects on foreign currency denominated loans of the group and its joint ventures." The effect of foreign exchange differences in 2017 had been less significant. 

Normalised earnings before interest, tax, depreciation and amortisation, including shares in joint ventures, was rubles 415.3bn, up 61.9% on 2017. Excluding the effect of foreign exchange differences, as well as the one-time effect from the disposal of interests in joint ventures, normalised profit attributable to shareholders rose to rubles 232.9bn, or 49.2%.

At the end of 2017 and early 2018, Novatek bought the Beregovoe, the West-Yaroyakhinskoe and the Syskonsyninskoe gas fields which are all producing.

Gas sales were up 11% at 72.1bn m³,  but liquid hydrocarbons sales were 15.8mn metric tons,  0.7% less than in 2017.

Sales volumes

 Source: Novatek