Russian energy company NOVATEK reported a 4.2% year-over-year increase in hydrocarbon production in the third quarter of 2026, even as natural gas sales declined, highlighting a divergence between rising output and sales volumes.

The company produced 168.2 million barrels of oil equivalent (boe) during the quarter, an increase of 6.8 million boe from the same period in 2025, according to preliminary operating results released Wednesday.

Natural gas production rose 4.9% to 21.12 billion cubic meters (bcm), compared with 20.13 bcm a year earlier. Meanwhile, production of liquid hydrocarbons, including crude oil and gas condensate, increased 1.3% to 3.56 million metric tons.

For the first nine months of 2026, NOVATEK’s total hydrocarbon production reached 514.4 million boe, up 3.3% from 498.1 million boe in the corresponding period last year.

Natural gas production during the nine-month period increased 3.4% to 64.8 bcm, while liquids production climbed 2.6% to 10.71 million metric tons.

Despite stronger production, NOVATEK recorded weaker natural gas sales, including liquefied natural gas (LNG).

Third-quarter gas sales declined 3.1% year over year to 15.8 bcm, while sales for the first nine months slipped 1.1% to 55.2 bcm.

Liquid hydrocarbon sales performed better, rising 10.5% to 4.9 million metric tons during the quarter. Nine-month liquids sales totaled 13.8 million metric tons, an increase of 1%.

At the end of September, NOVATEK reported inventories and volumes in transit totaling 1.5 bcm of natural gas, including LNG, alongside 0.9 million metric tons of stable gas condensate and petroleum products.

The production increase comes as Russian LNG exporters face changing international market conditions, particularly in Europe. The European Union has moved to phase out Russian natural gas imports, with restrictions on Russian LNG under long-term contracts scheduled to take effect on January 1, 2027.

NOVATEK is a major participant in Russia’s LNG industry, having entered the international market through its Yamal LNG project in 2017. Its upstream operations are concentrated primarily in the Yamal-Nenets region, one of the world’s largest natural gas-producing areas.

For investors, the latest results point to continued production growth, although declining gas sales remain an important consideration when assessing the company’s operating performance.

NOVATEK emphasized that its operating figures remain preliminary and could be revised following the completion of financial, statistical and other reporting procedures.

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