PAO NOVATEK on Wednesday released its audited consolidated financial statements for 2017. For the twelve months ended 31 December 2017, the company’s total revenues amounted to RR 583.2 billion (USD 10.27 billion) and Normalized EBITDA, including the share in EBITDA of joint ventures, totalled RR 256.5 billion (USD 4.52 billion), representing year-on-year increases of 8.5% and 5.8%, respectively.
The increases in total revenues and Normalized EBITDA were largely due to an increase in average realized liquids and natural gas prices. In addition, in December 2017, after the commencement of LNG production at the first train of Yamal LNG project, NOVATEK sold its first cargo of LNG to international markets.
Profit attributable to shareholders of PAO NOVATEK decreased to RR 156.4 billion (USD 2.75 billion), or by 39.3%, as compared to 2016. In 2016, NOVATEK’s profit was significantly impacted by the sale of a 9.9% equity stake in Yamal LNG and by the foreign exchange differences (including at the joint ventures level).
In 2017, natural gas sales volumes amounted to 65.0 billion cubic meters (bcm), representing a 0.5% increase as compared to 2016, due to a slight increase in volumes sold in the Russian Federation, as well as the commencement of sales of LNG purchased from the joint venture Yamal LNG to international markets from December 2017.
As on 31 December 2017, NOVATEK’s cumulative natural gas inventory balances in the Underground Gas Storage Facilities, the Gas Transmission System and own pipeline infrastructure totaled 1.0 bcm as compared to 0.8 bcm at the end of 2016.
In 2017, the company’s liquid hydrocarbons sales volumes amounted to 15.9 million tons, representing a 5.4% decrease in volumes sold as compared to 2016. The decrease was due to a natural decline in gas condensate production volumes at mature fields of the subsidiaries and joint ventures. As at 31 December 2017, NOVATEK recorded 962 mt of liquid hydrocarbons in transit or storage and recognized as inventory as compared to 903 mt at 31 December 2016.
“In 2017, we significantly increased our resource base in the main region of our activities, the YNAO and adjacent areas, including the purchase in the fourth quarter of 2017 of two producing fields (the West-Yaroyakhinskoye and the Syskonsyninskoye) contributing to our production maintenance program,” the company said.
The company’s upstream activities are concentrated mainly in the prolific Yamal-Nenets Autonomous Region, which is the world’s largest natural gas producing area and accounts for approximately 80% of Russia’s natural gas production and approximately 16% of the world’s gas production.
Sea News, February 22