One of Russia’s Leading Gas Companies Suffers Profit Slump

According to its consolidated financial statements, Novatek, Russia's second-largest gas exporter, recorded a steep drop in profit for 2025. The company's net income fell 2.7-fold, decreasing from 493.4 billion rubles to 183 billion rubles.

Revenue Decline Proves Less Severe

The company's revenue showed a far smaller contraction. Total revenue declined by 6.4 percent, reaching 1.445 trillion rubles. Normalized profit attributable to Novatek shareholders, excluding the impact of exchange-rate differences, amounted to 207 billion rubles. This figure also marked a 2.7-fold decrease compared with 2024.

Arctic LNG 2 Sales Resume Under Pressure

Earlier reports indicated that Novatek resumed sales of liquefied natural gas from its Arctic LNG 2 project during the second half of the year. The facility encountered US sanctions even before initial shipments began, which prevented the company from securing buyers willing to operate under restrictions for nearly eighteen months.

Shipments now move to a Chinese port. Reuters reported that Novatek offered partners significant discounts on cargoes from Arctic LNG 2, ranging between 30 and 40 percent.

Russian LNG Exports Continue to Contract

The International Energy Agency estimated that Russia's total LNG exports declined by seven percent in 2025, even as global demand for gas increased. Exports from Yamal LNG, Novatek's largest project, fell by 7.5 percent over the same period.

These figures underline the persistent challenges facing Russian LNG producers, as pricing pressures, logistics constraints, and sanctions continue to reshape market access and profitability.