Novatek’s profit dips on low oil and gas prices

Russia’s independent LNG producer Novatek reported a sharp decline in its net profit last year due to lower oil and gas prices.

Novatek said its net profit reached 67.8 billion roubles ($916.6 million) in 2020, compared to 865.5 billion roubles it logged in the year before.

Excluding effects such as the share sale of its Arctic 2 LNG project in 2019 and foreign-exchange fluctuations, net profit dropped 31 percent to 169 billion roubles, according to Novatek.

Revenues also dropped 17.5 percent to 711.8 billion roubles ($9.62 billion).

The LNG producer said its results were “significantly impacted by the unfavorable macroeconomic environment” as the Covid-19 pandemic destroyed demand all over the globe pushing prices down to record lows.

Revenues also dropped due to lower LNG sales on international markets.

Novatek reported last month it sold 8.93 bcm of LNG on international markets, a drop of 30.2 percent when compared to the year before.

The company attributed the decline to lower spot market sales from its Yamal LNG export terminal in the Russian Arctic.

The drop was due to the decrease of Yamal LNG shareholders’ share, including Novatek’s share, of volumes sold on the spot market, and a corresponding increase of Yamal direct sales under long-term contracts, it said.

However, the company also confirmed its natural gas and overall production of hydrocarbons has increased.

Novatek said its 2020 natural gas production increased by 3.6 percent year-on-year to 77.37 billion cubic metres.

The company’s total production of hydrocarbons rose by 3.1 percent to 608.2 million barrels of oil equivalent.

Most Popular

BGN delivers its first LNG cargo to Germany, secures Egypt deal

Switzerland-based energy trader BGN has completed its first LNG delivery to Germany, while simultaneously securing a deal to supply Egypt with LNG.

Samsung Heavy wins contract for Eni’s Coral Norte FLNG

South Korean shipbuilder Samsung Heavy has secured a preliminary contract for Eni's second FLNG project in Mozambique, Coral Norte (Coral North), according to shipbuilding sources.

Excelerate’s FSRU launched in South Korea

South Korean shipbuilder HD Hyundai Heavy Industries has launched Excelerate Energy’s new floating storage and regasification unit (FSRU).

More News Like This

Russian LNG production drops in May

Russian liquefied natural gas (LNG) production continued to decrease in May compared to last year, according to the Russian statistics agency Rosstat.

Russia’s Novatek in LNG truck move

Russian LNG producer Novatek and compatriot National Carrier (NATCAR) are joining fores to develop the market for LNG as fuel for trucks.

Russian LNG production drops in April

Russian liquefied natural gas (LNG) production decreased in April compared to last year, according to the Russian statistics agency Rosstat.

Russian LNG production down in Q1

Russian liquefied natural gas (LNG) production decreased in the first quarter of this year, according to the Russian statistics agency Rosstat.