Bloomberg News

Novatek Rallies on First-Quarter Revenue Gain Speculation

May 10, 2012

OAO Novatek rose on speculation Russia’s second-largest natural-gas producer will post a gain in first-quarter sales.

The shares added 5.5 percent to 333.52 rubles by the close in Moscow, the most since July 21.

First-quarter revenue climbed 7.5 percent to $1.65 billion from a year earlier, according to the average estimate of eight analysts surveyed by Bloomberg. The company is due to report earnings May 11.

The results will be “seasonally strong on volume growth across the board -- gas and liquid rose 11.2 percent and 5.7 percent year-over-year,” Alfa Bank analysts, led by Pavel Sorokin, wrote in an e-mailed report today. “Crude oil price appreciation further boosted the company’s liquid sales.”

The shares sank 10 percent on May 2 after Deputy Finance Minister Sergei Shatalov said the government approved quadrupling the mineral-extraction tax.

Independent gas producers, which include Novatek and oil companies, will pay 1,049 rubles per 1,000 cubic meters of gas produced in 2015, compared with 251 rubles this year, Shatalov told reporters in Moscow on May 2 after a government meeting.

To contact the reporter on this story: Ksenia Galouchko in Moscow at

To contact the editor responsible for this story: Gavin Serkin at

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