NOVATEK announces IFRS results for the third quarter and nine months ended 30 september 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

 

18 November 2005

Moscow, 18 November 2005. OAO NOVATEK today announced strong earnings in its third quarter and nine months 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 nine months ending 30 September 2005 totaled RR 10,798 million, or RR 3,556 per share (basic and diluted), compared to RR 4,061 million, or RR 1,807 per share (basic and diluted) for the same period in 2004. For the third quarter 2005, net profit attributable to NOVATEK increased by 65% to RR 2,875 million, or RR 947 per share (basic and diluted) from RR 1,743 million, or RR 776 per share (basic and diluted).
Net profit attributable to NOVATEK was higher in both periods mainly due to the increase in production volumes from core fields, 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 in the second quarter 2005.

Total revenues and other income grew by 77% to RR 32,240 million for the nine-month period ending 30 September 2005 from RR 18,240 million in the corresponding 2004 period. For the three-month period ending 30 September 2005, total revenues and other income increased by 89% to RR 10,242 million from RR 5,408 million for the corresponding period in 2004.

Natural gas sales increased by 84% to RR 16,873 million in the nine-month period ended 30 September 2005 from RR 9,173 million in the corresponding 2004 period, while revenues from liquids (crude oil, stable gas condensate, LPG and oil products) increased from RR 5,990 million in 2004 to RR 10,765 million, or 80%, during the period.

For the third quarter 2005, revenues from natural gas increased by 112% to RR 5,481 million from RR 2,583 million in the corresponding 2004 period, while revenues from liquids increased by 96% to RR 4,388 million from RR 2,233 million in 2004.

Natural gas sales volumes for the nine-month period ended 30 September 2005 rose by 64% from 12,582 million cubic meters in 2004 to 20,597 million cubic meters in 2005. Net liquid sales volumes grew by 21%, from 1,541 thousand tons in 2004 to 1,866 thousand tons in 2005.

In the third quarter 2005, natural gas sales volumes increased by 106% to 6,826 million cubic meters from 3,316 million cubic meters for the corresponding period in 2004, whereas liquids sales volumes increased by 9% to 592 thousand tons from 541 thousand tons in the 2004 period.

Third Quarter and Nine Months 2005 IFRS Financial and Operational Highlights

3Q 2005
3Q 2004
 
 
9M 2005
9M 2004
 
RR, mln
RR, mln
 
Revenues
RR, mln
RR, mln
 
9,869
4,816
105%
Oil and gas sales
27,638
15,163
82%

    -

-
-
Oil and gas construction services
-
2,053
 
278
158
76%
Sales of polymer and insulation tape
714
432
65%
113
53
-
Other
282
433
-
10,260
5,027
104.%
 Total revenues
28,634
18,081
58%
(18)
381
 
Total non-operating revenues
3,606
        159
 
10,242
5,408
89%
Total revenues and other income
32,240
18,240
77%
(6,214)
(3,319)
87%
Total operating expenses
(17,424)
(13,344)
31%
3,950
2,246
76%

Profit before income tax and minority interests

14,451
5,542
161%
2,855
1,749
 
Profit for period
10,763
4,122
 
2,875
1,743
65%
Profit attributable to shareholders
10,798
4,061
166%
947
776
22%
Basic and diluted earnings per share( in RR)
3,556
1,807
97%
3,036,306
2,247,030
 
Weighted average number of shares outstanding
3,036,306
2,247,030
 

Selected Operating Data

3Q 2005
3Q 2004
 
 

9M 2005

9M 2004

 
 
 
 

Sales Volumes

 
 
 
6,826
3,316
106%

Natural gas (millions cubic meters)

20,597
12,582
64%
82
400
-80%

Crude oil (thousand tons)

787
1,184
-34%
309
-
100%

Stable gas condensate (thousand tons)

396
-
100%
96
-
100%

Liquefied petroleum gas (thousand tons)

123
-
100%
105
141
-26%

Oil products (thousand tons)

560
357
57%


(in millions of Russian roubles)

ASSETS
 
 
 
 
 
 

30 September 2005

31 December 2004

Non-current assets

 
 
Property, plant and equipment, net
64,083
62,449
Investments in associates
-
1,945

Total non-current assets

65,755
73,316

Total current assets

13,682
9,134

Total assets

79,437
82,450
 
 
 

LIABILITIES AND EQUITY

 
 
 
 
 

Non-current liabilities

Long-term debt
1,428
13,232
Total non-current liabilities
11,260
23,275
Total current liabilities
12,562
14,239
Total liabilities
23,822
37,514
Equity attributable to Group shareholders
 
 
Total equity attributable to Group shareholders

55,334

44,487

Minority interest

281

449

Total equity

55,615

44,936

Total liabilities and equity

79,437

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 gas 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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