Novatek, the operator of the giant Yamal LNG project in the Russian Arctic, reported a 39.3 percent drop in net income for the first quarter of 2018 on IFRS basis.
The company’s IFRS net income dropped to 43.1 billion Russian rubles ($694.3 million), 39.3 percent lower compared to the corresponding period in 2017.
Novatek attributed the drop to the recognition of substantial non-cash foreign exchange effects on foreign currency denominated loans of the company and its joint ventures.
Excluding the effect of foreign exchange differences, as well as the one-time effect from the disposal of interests in joint ventures, profit would have been 46.9 billion Russian rubles, 5.8 percent higher compared to the first quarter 2017, Novatek said.
However, in its statement on Wednesday, Novatek said its total revenues reached 179.4 billion Russian rubles ($2.89 billion), 16 percent above the previous year results.
“The increases in our total revenues were largely due to production launch at the first LNG train at Yamal LNG at the end of 2017 and an increase in average realized liquids and natural gas prices,” the company said in a statement.
As reported earlier this month, the start of production from the Yamal LNG project edged the total natural gas production up by 2.2 percent with natural gas sales volumes reaching 20.3 billion cubic meters, 8.1 percent higher compared to the first quarter of last year.