Novatek reports profit of about $1.7 billion in H1

Russia’s LNG producer Novatek reported a net profit of 155.6 billion rubles ($1.7 billion) in the first half of this year. This is the first time since 2021 that the company has published its financial results.

Novatek said in April last year that it will not release its financial results for the first quarter of 2022.

This announcement was made after Russia invaded Ukraine in February 2022. Following EU and US sanctions on Russia and Russian companies, Novatek also delisted from the London Stock Exchange in February this year.

The firm has not released its results for the entire year of 2022 and has now published both the second quarter and first half results for 2023.

According to Novatek, the company’s profit attributable to its shareholders reached 62.7 billion ($683 million) rubles in the second quarter of this year, meaning that the company’s net profit reached 92.9 billion rubles in the first quarter.

In the second quarter, Novatek’s total revenues and Ebitda, including share in Ebitda of joint ventures, amounted to 314.8 billion rubles and 202.5 billion rubles, respectively.

Total revenues and Ebitda in the first half reached 643 billion rubles and 415.8 billion rubles, respectively, Novatek said.

“Despite the unprecedented challenges that significantly changed the operating environment, as well as the extreme volatility of global hydrocarbon prices during the reporting period, the company once again confirmed the resilience of its business model by demonstrating strong financial performance in the second quarter and six months 2023,” the LNG producer said.

Novatek’s LNG projects

Novatek currently operates the large Yamal LNG project and the medium-scale Vysotsk facility.

The company’s LNG sales rose in the second quarter of this year.

Moreover, Novatek recently sent the first gravity-based structure platform from its yard near Murmansk to the site of the Arctic LNG 2 project located on the Gydan peninsula.

The unit, with a total weight of more than 640,000 tons, will travel along the Northern Sea Route and is expected to arrive at the Arctic LNG 2 site next month.

The Arctic LNG 2 project located on the Gydan peninsula includes the construction of three LNG trains with a capacity of 6.6 mtpa, each.

Following arrival of the first GBS, Novatek is planning to launch production by the end of the first quarter of 2024.

Besides Arctic LNG 2, Novatek is also set to launch transshipment operations near Murmansk following the arrival of the 361,600-cbm Saam FSU at the site in Ura Bay.

The FSU arrived in Ura Bay in the Barents Sea during the night on June 26-27.

The second giant FSU, named Koryak, also recently arrived in Bechevinskaya Bay where Novatek’s second transshipment terminal is located.

Novatek previously said that these transshipment terminals will reduce voyage costs and greenhouse gas emissions.

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