NOVATEK announces IFRS results for the second quarter and six months ended 30 June 2007

23 August 2007

Moscow, 23 August 2007. OAO NOVATEK today released its consolidated interim condensed financial information for the three and six months ending 30 June 2007 prepared in accordance with International Financial Reporting Standards («IFRS»).

The Second Quarter and Six Months 2007 IFRS Financial Highlights

2Q 2007
2Q 2006
1H 2007
1H 2006
RR, mln
RR, mln
Revenues
RR, mln
RR, mln
14,542
12,374
Oil and gas sales
29,413
23,754
411
291
Sales of polymer and insulation tape
720
548
91
56
Other
156
97
15,044
12,721
Total revenues
30,289
24,399
9
(172)
Other income (loss)
25
(285)
15,053
12,549
Total revenues and other income
30,314
24,114
(9,002)
(7,840)
Total operating expenses
(18,567)
(14,624)
6,093
4,631
Profit before income tax
11,812
9,505
4,210
3,443
Profit for period
8,552
7,145
4,216
3,499
Profit attributable to shareholders
8,563
7,216
1.39
1.15
Basic and diluted earnings per share(1)
2.82
2.38

In the three and six months ended 30 June 2007, profit attributable to shareholders of OAO NOVATEK increased by RR 717 million and RR 1,347 million, respectively, compared to the corresponding period in 2006 due to a combination of increased natural gas and liquid sales volumes and prices.

Selected Operating Highlights

2Q 2007
2Q 2006
1H 2007
1H 2006
Sales Volumes
7,722
7,683
Natural gas (millions cubic meters)
16,841
15,517
389
331
Stable gas condensate
(thousand tons)
774
588
125
124
Liquefied petroleum gas
(thousand tons)
248
253
57
74
Crude oil (thousand tons)
125
140
13
35
Oil products (thousand tons)
31
58

n the three and six month periods ended 30 June 2007, natural gas sales volumes increased primarily due to increased production and a net decrease in inventory balances while liquids (stable gas condensate, liquefied petroleum gas, crude oil and oil products) sales volumes increased primarily due to increased crude oil production and a decrease in net volumes of stable gas condensate recorded as goods in transit.

Selected Balance Sheet Items
(in millions of Russian roubles)

30 June 2007
31 December 2006
ASSETS
Non-current assets
Property, plant and equipment, net
71,494
66,734
Total non-current assets
72,879
68,508
Total current assets
17,494
15,818
Total assets
90,373
84,326
LIABILITIES AND EQUITY
Non-current liabilities
Long-term debt
175
543
Total non-current liabilities
10,265
10,552
Total current liabilities
6,132
5,098
Total liabilities
16,397
15,650
Equity attributable to Group Shareholders
Total equity attributable to Group shareholders
73,631
68,320
Minority interest
345
356
Total equity
73,976
68,676
Total liabilities and equity
90,373
84,326

The full set of consolidated interim condensed IFRS financial information, the notes thereto and Management’s Discussion and Analysis of Financial Condition and Results of Operations are available on the Company’s web site (www.novatek.ru).


PAO NOVATEK is one of the largest independent natural gas producers 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”.

PDF Download press release
(PDF, 52 KB)