Novatek’s Q3 natgas production up 4.5%

Russia’s largest independent gas producer, Novatek, saw its production rise 4.5% year-on-year during the third quarter of 2020, despite a slight decline in total sales volumes, Kallanish Energy reports.

The company said in its Q3 results that total gas production reached 19.13 billion cubic meters (Bcm) in the July-September quarter, up from 18.31 Bcm a year earlier. Total gas sales volumes were down 0.8% y-o-y at 16.6 Bcm, as higher domestic sales were offset by lower LNG sales.

Novatek posted a net profit of 13.17 billion roubles, which is a huge drop from 3Q19’s net profit of 369.95 billion roubles, but still a positive result. The company noted the results were “significantly impacted by a weak macroeconomic environment noted above that resulted in a decrease in our hydrocarbon sales prices and a recognition of substantial foreign exchange effects.”

Additionally, in 2019, the company recorded gains from divestments in the Arctic LNG 2 project.

This post appeared first on Kallanish Energy News.