OAO Novatek rose after Chief Executive Officer Leonid Mikhelson said Russia’s second-largest natural-gas producer is raising its output growth forecast for the year percent on strong first-half performance.
Novatek gained 1 percent to 349.47 rubles by 3:01 p.m. in Moscow, reversing an earlier decline. The stock has slumped 11 percent this year.
Gas production will probably rise 7 percent to 11 percent on average from last year, Mikhelson, a billionaire shareholder in the company, told reporters today in Moscow.
“We said in the beginning of the year that growth would be about 6 percent to 7 percent,” Mikhelson said. “First-half growth was significantly higher.”
Gross natural-gas output jumped 12 percent to 28.7 billion cubic meters in the first half, Novatek said July 11. OAO Gazprom, the world’s biggest producer of the fuel, cut output about 6.3 percent in the period to 252.4 billion cubic meters, according to data from the Energy Ministry’s CDU-TEK unit. The companies together produce about 80 percent of the country’s natural gas.
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