Page 150 - RusRPTFeb23

RUB52.53/share. However, during the AGM on June 30, 2022, Gazprom shareholders decided during the AGMnot pay dividends for 2021, which provoked the disappointment of private investors and the collapse of the Russian stock market.
● Novatek
Novatek published operating results for 2022. The company's natural gas production increased by 2.8% y/y to 82.1 bcm last year, while its liquids output decreased by 2.9% y/y to 12.3mn tonnes. It sold 8.5 bcm of gas in international markets, up 6.3% y/y. Gas processing volumes at Pur and Ust-Luga amounted to 13.2mn tonnes and 6.9mn tonnes, respectively, up 3.3% and flat y/y. At the end of the year, the company had 1 bcm of natural gas and 1.2mn tonnes of liquids in storage and inventories.
Sber says, the annual output numbers imply that Novatek's gas production increased by almost 3% y/y (and 7% q/q) in 4Q22, with liquids output up 4% y/y (and 7% q/q). This was in line with our expectations. A stable performance from the gas segment on the back of the full utilization of Yamal LNG was accompanied by relatively weak liquids production due to a further slowdown in crude oil output. Novatek's LNG resales in foreign markets increased by 25% y/y (and 27% q/q) to 2.5 bcm in 4Q22.
Sber expects an implied 0.8 bcm release from natural gas inventories in 4Q22 to provide an additional boost to the margins. Gas condensate processing at Pur was up 2.5% y/y in the quarter, while Ust-Luga throughput was flat. All in all, despite the weak liquids output, the operating results point to quite healthy 4Q22 financial results, thanks to a seasonally strong performance from the gas business and inventory releases.
● Lukoil
Leading Russian privately owned oil major Lukoil has sold its Italian refinery to a group of firms led by Cypriot private equity firm G.O.I. Energy and backed by Swiss-based trading house, Trafigura, it was reported on January 10.
This marks the company's first significant asset sale since Russia's invasion of Ukraine last year and the imposition of sanctions by Western countries.
In the past, Lukoil had been an active buyer of Western assets, but these overseas holdings became problematic following the imposition of sanctions. However, the sale of the ISAB plant in Sicily, which refines 320,000 barrels of crude oil per day and accounts for a fifth of Italy's refining capacity, represents a partial success in a climate of asset confiscations by both Russia and the West.
150 RUSSIA Country Report February 2023 www.intellinews.com