RusEnergy

23 April 2007 - Upstream OnLine - Russia's second-biggest gas company, Novatek , said profit rose 2.8% in 2006 while revenue soared 27%. Novatek, in which gas giant Gazprom has a 19.4% stake, said profit attributable to shareholders rose to 14.08 billion roubles ($546.6 million) from 13.70 billion roubles. A Reuters poll of eight analysts showed investment banks expected net profit to total $533 million. Revenue rose to 48.81 billion roubles ($1.90 billion) in 2006 from 38.48 billion roubles. A Reuters poll showed analysts expected revenue to rise to $1.83 billion. The earnings were prepared in accordance with international financial reporting standards. Sales of natural gas increased by 10.9% in 2006 to 30.31 billion cubic metres from 27.33 billion cubic metres. "Overall growth in production was achieved through the efficient exploitation of our existing producing asset base," Novatek said in its accounts. "We expect our total production volumes to continue growing, primarily as a result of the development activities at our existing producing fields and by exploring and developing other oil and gas fields in our asset portfolio," the company said.