Novatek of Russia on Wednesday reported a 38.7 percent drop in profit for the first quarter of 2017 due to the foreign exchange effect and the effect of the disposals of interests in joint ventures.
First quarter net profit reached RR 71.0 billion (US$1.25 billion) as compared to RR 115.9 billion ($2.05 billion) during the corresponding quarter in 2016.
The company’s revenue for the period rose by 11 percent to RR 154.6 billion, largely driven by the increase in natural gas sales volumes as well as the increase in liquids sales prices.
Novatek’s natural gas sales volumes totaled 18.8 bcm, representing a 5.5 percent increase compared with the corresponding period in 2016, resulting from a higher demand for natural gas due to adverse weather conditions.
As at the end of the first quarter 2017, the total amount of natural gas recorded as inventory totaled 130 mmcm compared to 429 mmcm as at the end of the first quarter 2016, Novatek said in its report.
1 RUB = 0.0177034 USD