Novatek’s Q3 profit surges

Russian independent LNG producer Novatek said its net profit surged to almost 113 billion roubles ($1.6 billion) in the third quarter on the back of higher oil and gas prices.

Compared to a profit of 13.1 billion roubles ($185 million) Novatek reported in the July-September period, profit rose more than eight times.

Excluding effects of foreign-exchange fluctuations and disposal of interests in subsidiaries and joint ventures, net profit rose three times to 104.9 billion roubles ($1.48 billion), according to Novatek.

Revenues also increased 69 percent to 276.7 billion roubles ($3.91 billion).

The LNG producer attributed the rise in profit to improved macroeconomic conditions, which resulted in an increase in the firm’s hydrocarbons sales prices, as well as the launch of new production facilities in August 2020.

Novatek reported earlier this month a slight decrease in gas production for the third quarter of this year.

The company’s natural gas production dropped by 0.7 percent year-on-year to 19 billion cubic meters while total production of hydrocarbons decreased by 0.5 percent to 149.5 million barrels of oil equivalent.

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