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NOVATEK announces first quarter 2008 IFRS results
19 May 2008
Moscow, 19 May 2008. OAO NOVATEK today released its consolidated interim condensed financial information for the three months ending 31 March 2008 prepared in accordance with International Financial Reporting Standards («IFRS»).
IFRS Financial and Operational Highlights
In the three months ended 31 March 2008, total revenues and other income grew by 36.8% to RR 20,892 million from RR 15,275 million in the corresponding period of 2007, reflecting the general strength and stability of our core business operations. The increase in total revenues from our primary business operations was attributable to the favorable pricing environment for both domestic and international hydrocarbon sales.
Profit attributable to NOVATEK shareholders increased by 72.6% to RR 7,503 million, or RR 2.47 per share, in the three months ended 31 March 2008 as compared to RR 4,347 million, or RR 1.43 per share, in the corresponding period in 2007.
Selected Operating Highlights
Sales volumes of natural gas decreased by 728 million cubic meters, or by 8.0%, from 9,119 million cubic meters in the three months ended 31 March 2007 to 8,391 million cubic meters in the corresponding period in 2008. The main cause for the sales volumes reduction was the decrease of volumes withdrawn from underground storage owned and operated by OAO Gazprom. In the three months ended 31 March 2008, our withdrawal from the underground storage facilities totaled 39 million cubic meters as compared to 893 million cubic meters in the corresponding period in 2007. Due to the unseasonably warm winter in 2007 we had a reduction in the amount of natural gas injected into the underground storage facilities in the summer season.
Net liquid sales volumes increased by 18.2% from 594 thousand tons in 1Q 2007 to 702 thousand tons in 1Q 2008.
At 31 March 2008, we had 172 thousand tons of stable gas condensate in transit or storage and recognized as inventory until such time as it is delivered to the port of destination as compared to 224 thousand tons as of 31 December 2007. At 31 March 2007, our inventory balance of stable gas condensate was 192 thousand tons compared to 190 thousand tons as of 1 January 2007.
Selected Balance Sheet Items
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 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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