Novatek Expects Improved Results, Confirms EnBW Supply Deal
08/14/2012| 10:31am US/Eastern
By James Marson
MOSCOW--OAO Novatek (>> NOVATEK OAO), Russia's biggest independent gas producer, expects improved results in the third quarter on the back of production increases and higher sales, Chief Financial Officer Mark Gvetvay said Tuesday during a conference call.
Novatek's second-quarter net profit fell 32.6% from a year earlier to 9.66 billion rubles ($306 million) due to foreign-exchange losses.
Mr. Gvetvay also confirmed that Novatek has signed a contract with German utility EnBW Energie Baden-Wuerttemberg AG (>> Enbw Energie Baden Wuerttemberg AG) to supply 2 billion cubic meters of natural gas per year from the fourth quarter 2012 for a period of 10 years. He said the contract would be a "trading operation."
State-controlled OAO Gazprom (>> Gazprom OAO) is the monopoly exporter. Mr. Gvetvay said the contract wouldn't involve an agency agreement with Gazprom, but declined to provide further details.
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