The company continues to buy back to support quotes

NOVATEK continues to actively buy its shares from the market as part of the buyback program to maintain quotations that have fallen significantly since the spring. Last week, the company purchased 440 thousand securities for approximately $5 million, and in general, since the start of the buy back, it has spent a little more than 1.5% of the planned volume of $600 million, managing to increase its value by about 4%.

The largest Russian independent gas producer, NOVATEK, reported that during the second week of the buy back program it bought 440 thousand securities worth about $5 million on the market. The price of shares on the MICEX on Monday at 11:30 Moscow time was 329.75 rubles. per share (a fall of 0.67% while the index grew by 0.09%). During the first week from the start of the buyback, the company purchased another 485 thousand securities for approximately the same amount. Despite the fact that the buy back program was approved on June 7, the repurchase of NOVATEK’s ordinary shares and GDRs began only on November 16, after at the beginning of the month the company’s stock quotes, which had been falling since May, showed another serious decline. At that time, the share price was at 315 rubles. per security on the MICEX, that is, the growth of quotations exceeded 4%.

According to the approved scheme, all transactions for the purchase of shares or GDRs are carried out at the expense of the Cyprus company Novatek Equity, where NOVATEK owns 100% of the shares. Thus, today the package on the balance sheet of Novatek Equity (Cyprus) Limited has increased to 2,893,530 shares, including in the form of GDRs. In general, the buyback period under the program is scheduled until June 7, 2013, the volume is up to $600 million. So far, the company has sold 1.6% of the maximum possible buy back amount. Securities acquired under the program can be used to finance the company's activities or be used in a program to reward and encourage management and key employees.

Olga Mordyushenko

NOVATEK spends money on itself