Russia Monitor is a review of the most important events related to Russian internal and external security, as well as its foreign policies.
Date: 27 February 2023 Author: Grzegorz Kuczyński
With Record-High Sales, Novatek Reveals Ambitious Plans
In 2022, Russia’s biggest private gas firm Novatek made a record net profit, up 50 percent from last year. That is due to soaring liquefied natural gas exports in Russia. In the past, unlike Gazprom, Novatek put a safe bet on LNG production and now benefits from that.
According to Mikhelson, the company’s profits grew by around 50 percent in 2022. Although no accurate figures are publicly available, the company made 433 billion roubles throughout 2021. “Importantly, we have no problems with selling all the products that we produce,” Mikhelson was quoted as saying. The Russian gas firm approved a dividend policy of distributing not less than 50 percent of the consolidated net profit. Novatek expects to maintain gas and liquid hydrocarbons production in 2023 at the level of last year, Mikhelson told journalists. “We still have the same plans. Last year we produced somewhere a little more than 82 billion cubic meters of gas and about 12 million tons of liquid hydrocarbons. Our oil production is falling, but condensate production is increasing. And we will stay somewhere at that level in 2023,” Mikhelson said at India Energy Week. “The long-term contracts that we had, from all the buyers, we did not hear from anyone about the intention to terminate them,” explained Mikhelson. “Buyers are happy with spot prices and we have no problems with selling all the products that we produce,” according to Mikhelson. Unlike oil and pipeline gas imports, LNG deliveries from Russia have not been subject to sanctions. The Yamal LNG project is crucial for exports. Against a decline in total gas exports, there was a soar in liquefied natural gas exports, which fosters the firm’s further expansion. Mikhelson also announced that its new flagship project Arctic LNG 2 is on schedule to begin operating by the end of 2023.
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