NOVATEK ANNOUNCES IFRS RESULTS FOR THE SECOND QUARTER AND THE FIRST HALF 2005

Contacts
Mark Gyetvay, Deputy Chairman of the Management Board
Alexander Nazarov, Head of IR
+7 (495) 730-6013
ir@novatek.ru

 

Maria Dokuchaeva, Press-secretary
+7 (495) 721-2207
press@novatek.ru

 

06 September 2005

Moscow, 5 September, 2005. OAO NOVATEK announced record earnings in its second quarter and first half 2005 consolidated interim condensed financial results prepared in accordance with International Financial Reporting Standards («IFRS») and reviewed by PricewaterhouseCoopers.

Net profit attributable to NOVATEK for the six months ending 30 June 2005 totaled RR 7,923 million, or RR 2,609 per share (basic and diluted), compared to RR 2,318 million, or RR 1,032 per share for the same period in 2004. For the second quarter 2005, net profit attributable to NOVATEK increased six fold to RR 5,608 million, or RR 1,847 per share (basic and diluted) from RR 884 million, or RR 393 per share.

Net profit for both periods rose mainly to continued increases in production volumes from the Yurkharovskoye field, the impact on financial results due to the December 2004 asset consolidations, and the net gains on disposal of investments in oil and gas producing associates.

Total revenues and other income grew by 71% to RR 21,983 million for the six-month period ending 30 June 2005 from RR 12,831 million in the corresponding 2004 period. For the three-month period ending 30 June 2005, total revenues and other income increased by 110% to RR 12,983 million from RR 6,177 million for the corresponding period in 2004, which included the gain on disposal of RR 3,611 million.

Excluding the gain on disposal of investments in oil and gas producing associates, total revenues and other income for the second 2005 period rose by 52% as compared with 2004. Total revenues from our core oil and gas business activities increased by 47% to RR 9,355 million in 2005 from RR 6,358 million in the 2004 period.

Natural gas sales increased by 73% to RR 11,392 million in the six months ended 30 June 2005 from RR 6,590 million in the corresponding 2004 period, while revenues from liquids increased from RR 3,757 million in 2004 to RR 6,377 million, or 70%, during the period. For the second quarter 2005, revenues from natural gas increased by 75% to RR 5,454 million from RR 3,114 million in the corresponding 2004 period, while revenues from liquids (crude oil and gas condensate, stable condensate and oil products) increased by 82% to RR 3,622 million from RR 1,995 million in 2004.

Natural gas sales volumes for the six-month period ended 30 June 2005 rose by 49% from 9,266 million cubic meters in 2004 to 13,771 million cubic meters in 2005. Net liquid sales volumes grew by 27%, from 1,000 thousand tons in 2004 to 1,270 thousand tons in 2005.

In the second quarter 2005, natural gas sales volumes increased by 59% to 6,760 million cubic meters to from 4, 239 million cubic meters for the corresponding period in 2004, whereas liquids sales volumes increased by 31% to 663 thousand tons from 506 thousand tons in the 2004 period.

The Second Quarter And The First Half 2005 IFRS Financial and Operational Highlights

2Q 2005

2Q 2004

 

 

1H 2005

1H 2004

 

RR, mln

RR, mln

 

Revenues

RR, mln

RR, mln

 

9,076

5,109

77.6%

Oil and gas sales

17,769

10,347

71.7%

-

986

-

Oil and gas construction services

-

2,053

 

225

114

97.4%

Sales of polymer and insulation tape

437

273

60.1%

54

149

(63.8%)

Other

153

380

(59.7%)

9,355

6,358

47.1%

Total revenues

18,359

13,053

40.6%

3,628

(181)

 

Total non-operating revenues

3,624

(222)

 

12,983

6,177

110.2%

Total revenues and other income

21,983

12,831

71.3%

(5,443)

(4,889)

11.3%

Total operating expenses

(11,195)

(10,024)

11.7%

7,417

1,392

432.8%

Profit before income tax and minority interests

10,501

3,296

218.6%

5,600

948

490,7%

Profit for period

7,908

2,373

233,2%

5,608

884

534%

Profit attributable to shareholders

7,923

2,318

241%

1,847

393

370.0%

Basic and diluted earnings per share( in RR)

2,609

1,032

152.6%

3,036,306

2,247,030

 

Weighted average number of shares outstanding

3,036,306

2,247,030

 

Selected Operating Data

2Q 2005

2Q 2004

 

 

1H 2005

1H 2004

 

 

 

%

Sales volumes

 

 

%

6,760

4,239

59%

Natural gas (millions cubic meters)

13,771

9,266

49%

341

401

-15%

Crude oil and gas condensate (thousand tons)

705

784

-10%

235

105

124%

Oil products (thousand tons)

478

216

121%

87

-

 

Stable gas condensate (thousand tons)

87

-

 

Selected Balance Sheet Items (in millions of Russian roubles)

 

30 June 2005

31 December 2004

ASSETS

 

 

Non-current assets

 

 

 Property, plant and equipment, net

63,928

62,449

 Investments in associates

-

1,945

Total non-current assets

65,456

73,316

Total current assets

19,634

9,134

Total assets

85,090

82,450

LIABILITIES AND EQUITY

Non-current liabilities

 Long-term debt

6,281

13,232

Total non-current liabilities

16,194

23,275

Total current liabilities

16,179

14,239

Total liabilities

32,373

37,514

Equity attributable to Group shareholders

Total equity attributable to Group shareholders

52,415

44,487

Minority interest

302

449

Total equity

52,717

44,936

Total liabilities and equity

85,090

82,450

The full set of consolidated interim condensed IFRS financial statements and notes thereto are available on the Company’s web site (www.novatek.ru)


PAO NOVATEK is the largest independent natural gas producer in Russia, and in 2017, entered the global LNG market by successfully launching the Yamal LNG project. Founded in 1994, the Company is engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons. The Company’s upstream activities are concentrated mainly in the prolific Yamal-Nenets Autonomous Region, which is the world’s largest natural gas producing area and accounts for approximately 80% of Russia’s natural gas production and approximately 15% of the world’s gas production. NOVATEK is a public joint stock company established under the laws of the Russian Federation. The Company’s shares are listed in Russia on Moscow Exchange (MOEX) and the London Stock Exchange (LSE) under the ticker symbol “NVTK”.

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