OAO Novatek, Russia’s second-biggest natural-gas producer, said third-quarter profit rose 17 percent after domestic tariffs were increased twice during the period.
Net income advanced to 23.5 billion rubles ($726 million) from 20 billion rubles a year earlier, Novatek said today in a statement. That beat the 22.2 billion-ruble average estimate of 12 analysts surveyed by Bloomberg.
Novatek, controlled by billionaires Leonid Mikhelson and Gennady Timchenko, benefited when Russia raised gas tariffs by 15 percent in July and 3 percent in August. The company sells all its gas output locally because Moscow-based OAO Gazprom, the world’s largest producer of the fuel, has a monopoly on exports.
The higher tariffs, coupled with growth in gas and liquids production, bolstered Novatek’s earnings, Dmitry Loukashov, an analyst at VTB Capital, said in an e-mailed note yesterday.
Gas output increased 9.1 percent to 14.5 billion cubic meters in the quarter and liquids production grew 15 percent to 1.14 million metric tons, the Tarko-Sale, Siberia-based company said in October. Higher production bolstered sales volumes, driving revenue up 44 percent to 75.6 billion rubles.
Novatek climbed 0.8 percent to 417.44 rubles in Moscow trading as of 4:46 p.m. local time.
Chief Financial Officer Mark Gyetvay will host a conference call on Nov. 8.