Novatek PAO

MOEX:NVTK

Record quarter: NOVATEK reported record quarterly revenue of RUB 277 billion and normalized EBITDA of RUB 182 billion, driven by sharply higher oil and gas prices.

Strong cash flow: Nine-month free cash flow reached a record RUB 182 billion, compared with negative free cash flow of RUB 30 billion a year earlier.

Gas outlook: Management confirmed its 2021 forecast for gas production growth of about 3% and a small increase in liquids production.

Project progress: Arctic LNG 2 was 52% complete at September 30, up from 45% in the second quarter; all project volumes have been sold under long-term contracts, with first-train sales planned for 2023.

Market conditions: Global gas markets remained tight, with European benchmarks up more than 500% year-on-year and strong demand from Asia, particularly China.

Shareholder returns: The company approved an interim dividend of RUB 27.67 per ordinary share, or RUB 276.7 per GDR, up 134.1% from the first half of 2020.

Low-carbon strategy: The Obskiy Gas Chemistry Complex is being designed to produce more than 2 million tons of ammonia and about 120,000 tons of hydrogen annually, while capturing about 4 million tons of CO2 per year.