Page 157 - RusRPTMay21

RUB696mn), Kommersant reports. Gazprom also participated in the auction. The area has 583bcm and 73mnt of gas and oil resources, respectively, although it has only one field (Tota-Yakhinskoye), with C1 reserves of 1.6bcm. The company intends to use the asset for its Rospan gas project in YaNAO. The price of the gas licence implies a multiple of $0.06/boe of resources. In 2020, Rosneft spent RUB4bn on purchasing licences and participating in licence auctions (after RUB11bn in 2019, RUB3bn in 2018 and RUB34bn in 2017, when the Erginskoye oil field was purchased). Rosneft planned to start producing marketable gas at Rospan in 1Q21. The company has previously guided that it plans to produce 21bcm at Rospan at the plateau level. Given the sales of gas in the domestic market with stable RUB-denominated prices, the higher share of gas in overall hydrocarbon production might reduce the volatility of Rosneft’s revenues, as well as somewhat alleviate the effect of the OPEC+ restrictions on its ability to increase the topline.
● Novatek
Novatek reported its 1Q21 IFRS results on April 28, with revenue coming in close to expectations and EBITDA ahead of estimates. Net income came in slightly behind consensus but ahead of our estimate.
The company already reported its 1Q21 operating results, which showed gas sales up 3.6% y/y to 21.4bcm and gas production up 5.6% y/y to 20.2bcm. The reported average natural gas price was down 3.5% y/y in US-dollar terms at $69.6/mcm and up 8.3% y/y in ruble terms at RUB5,171/mcm.
Total revenue increased 33% y/y to RUB245bn, as revenue from natural gas sales was up 12% y/y; sales of stable gas condensate refined products were up 48% y/y; crude sales were up 30% y/y; LPG sales were up 109% y/y; and sales of stable gas condensate were up 87% y/y.
Total operating expenses rose 22% y/y, as purchases increased 43% y/y mostly on the back of higher prices, and volumes of gas purchases increased 7% y/y to 8.9bcm. Transportation costs rose almost 10% y/y, with most of the increase related to gas pipeline transport. Condensate and refined product purchases via tankers fell 7% y/y. Taxes other than income were up 37% y/y to RUB18.9bn. Despite the y/y increase in opex, EBITDA grew 69% y/y to RUB76.6bn, with the margin improving 7ppts to 25%. EBITDA was 6% ahead of our estimate and 3% ahead of consensus.
Normalized EBITDA came in at RUB143.8bn vs. RUB100.7bn in 1Q20, as the contribution from associates improved y/y. The contributions from Yamal LNG and Arcticgas were up c. 10% y/y and 46% y/y, while contributions from others nearly doubled.
157 RUSSIA Country Report May 2021 www.intellinews.com