Better than the second

NOVATEK again demonstrated production growth

NOVATEK's consolidated report under international financial reporting standards for the third quarter of the year, unlike the three months preceding it, was not rich in high-profile transactions. The company managed to somewhat smooth out the negative effect of the contract for the supply of gas to the Gazprom group, which was amended in April, as a result of which NOVATEK received 10% more from gas sales in the “end-consumer” segment, minus transportation costs, by 10% more than in the second quarter. But still, the company’s revenue from every thousand cubic meters was 100 rubles. less than NOVATEK received a year ago, and by 90 rubles. less than the regulated price for the Yamalo-Nenets Autonomous Okrug.

As reported, NOVATEK in April 2009 revised the terms of the contract for the sale of natural gas with one of the major traders (later the head of the company Leonid Mikhelson explained that this was a “daughter” of Gazprom - Mezhregiongaz) and transferred sales with it to a supply basis directly in gas consumption regions. As a result, sales to end consumers formally increased by a quarter compared to the first quarter of the year, and their share in the total sales structure reached 75% (5.7 billion cubic meters). However, it is clear that the trader, whose name NOVATEK does not disclose, simply changed its location in the distribution scheme, moving from the position “at the entrance to the gas transmission system” to the position “at the exit”, and the supplier had to pay transportation costs. As a result, in April-June NOVATEK received only 667 rubles from the sale of thousands of cubic meters to Mezhregiongaz, an increase of 360 rubles. less than what Itera paid NOVATEK, which purchases gas from it at the entrance to the system. In the third quarter, the difference between income from sales to Mezhregiongaz and Itera decreased to 260 rubles.

On the other hand, this policy again allowed the largest independent gas producer to demonstrate production growth. NOVATEK enterprises produced 7.75 billion cubic meters - this is a 3 percent increase in the context of the crisis and a decrease in gas consumption in the country. Of this, the majority (4.1 billion cubic meters) came from the growing Yurkharovskoye field (an increase of 62%), while production figures from NOVATEK's older projects (East-Tarkosalinskoye and Khancheyskoye fields) fell by 25 and 36%, respectively.

But the increase in Yurkharovsky gas production, contrary to price logic, made it possible to increase the production and sale of liquid hydrocarbons, primarily condensate. In July-September, NOVATEK sold 467 thousand tons of condensate (42% more than in the third quarter of last year) and 189 thousand tons of liquefied petroleum gas (plus 23.5%).

At the same time, NOVATEK sharply increased its external borrowings. From August to November the company borrowed 5 billion rubles. from Sberbank, 2.6 billion rubles. from Gazprombank, $200 million from UniCredit Bank, agreed on a credit line with BNP Paribas for $100 million and registered on the MICEX the issue of three-year ruble bonds for 30 billion rubles.

Alexey GRIVACHS