Business & Finance

Russia's Novatek doubles Q2 net

MOSCOW : Novatek , Russia 's No.2 gas producer doubled its second quarter net profit, thanks to a jump in production a

Published August 12, 2011 Updated August 12, 2011 01:00pm

2 min

By Muhammad Iqbal

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The company, controlled by oil and gas trader Gennady Timchenko and chief executive Leonid Mikhelson, said on Friday that second quarter net profit reached 14.42 billion roubles ($489 million), up from 7.14 billion roubles in the year-earlier period.

Analysts polled by Reuters had expected net profit to rise to 14.14 billion roubles.

Novatek has been active in acquiring new assets, including Sibneftegaz, holder of licences to develop gas fields in the Arctic region of Yamal Nenets.

Second quarter gas production reached 10.70 billion cubic metres (bcm), up 29 percent from the year-earlier period.

Sales volumes rose 49.6 percent in the period to 11.83 bcm.

Russian regulators approved French energy major Total's plans to take a 20.5 percent stake in Yamal LNG last month.

Liquefied natural gas (LNG) production at Yamal is expected to reach 15 million tonnes in 2018, and cost estimates for the project range from $20 billion to about $35 billion.

Friday's press release did not provide information on any additional companies that might join the project.

Second quarter revenues increased to 40.50 billion roubles, up from 25.05 billion roubles in the year-earlier period.

As of 1255 GMT, Moscow-traded shares in Novatek were up 1.6 percent, underperforming the MICEX inde, which was up 2.9 percent.

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