Higher Gas Prices Push Novatek Revenue Up

Russia's largest independent producer Novatek has said that higher natural gas and liquids prices are partly responsible for increased revenue of 20.4 per cent in 2012.

Revenue grew from RUB 175.3 billion (€4.355 billion) to RUB 211 billion (€5.24 billion). An increase in the sale of hydrocarbons was also identified as a reason for the increase in revenues with gas sale volumes growing by 9.7 per cent from 2011 to 58.9 billion cubic metres. 

The sale of liquid hydrocarbons also increased by 2.2 per cent bringing total sales volumes for 2012 to 4,203 thousand tons. Novatek credits a growth in crude oil output from the East-Tarkosalinskoye field, the commencement of gas condensate purchases from joint ventures and a production growth in its subsidiaries, for the increased liquid sales.

The company's International Financial Reporting Standards (IFRS) results, which were released today, also noted an increase in profits of 22.6 per cent. The increase brings profits from RUB 56.7 billion (€1.4 billion) to RUB 69.5 billion (€1.7 billion).