NOVATEK announces consolidated IFRS results for the year ended 31 December 2010

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

 

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11 March 2011

Moscow, 11 March 2011. OAO NOVATEK today released its audited consolidated financial statements for the years ended 31 December 2010 and 2009 prepared in accordance with International Financial Reporting Standards (“IFRS”). 

IFRS Financial and Operational Highlights
(in millions of Russian roubles)

 

FY 2010

FY 2009

Revenues

  

 

Oil and gas sales

115,162

86,903

Sales of polymer and insulation tape

1,699

1,873

Other revenues

163

1,178

Total revenues

117,024

89,954

Total operating expenses

(68,518)

(56,130)

Net gain on disposal of interest in subsidiaries

1,329

52

Other operating income (loss)

396

(343)

Profit from operations

50,231

33,533

Finance income (expense)

1,197

(831)

Profit before income tax

51,082

32,500

Profit (loss)

40,278

25,722

Profit (loss) attributable to OAO NOVATEK shareholders

40,533

26,043

Basic and diluted earnings per share

(in Russian roubles)

13.37

8.59

Total revenues grew by 30.1% year-on-year to RR 117,024 million for the twelve months ended 31 December 2010 from RR 89,954 million in the corresponding period of 2009, reflecting the overall growth in our hydrocarbon production and sales volumes as well as higher prices for both natural gas and liquid hydrocarbons. 

As a result of the higher revenues and our ability to decrease costs as a percentage of total revenues, profit attributable to NOVATEK shareholders increased by 55.6% to RR 40,533million, or RR 13.37 per share as compared to RR 26,043million, or RR 8.59 per share for the corresponding period in 2009. 

Selected Operating Highlights

Production and Purchased Volumes

FY 2010

FY 2009

Natural gas production (million cubic meters)

37,208

32,353

Natural gas purchases (million cubic meters)

-

1,000

Total natural gas production and purchases

37,208

33,353

Liquids production (thousand tons)

3,617

3,038

Liquids purchases (thousand tons)

12

13

Total liquids production and purchases

3,629

3,051

Sales Volumes

FY 2010

FY 2009

Natural gas (million cubic meters)

37,117

32,937

Stable gas condensate (thousand tons)

2,330

2,170

Liquefied petroleum gas (thousand tons)

876

749

Crude oil (thousand tons)

185

198

Oil products (thousand tons)

10

11

In 2010, our total consolidated natural gas production increased by 4,855 mmcm, or 15.0%, compared to 2009 due to an increase in production at our Yurkharovskoye field resulting from the launches of the second and third stages of the field’s second phase development in October 2009 and 2010, respectively.

Our liquids production increased by 579 thousand tons, or 19.1%, to 3,617 thousand tons compared to 3,038 thousand tons in 2009, due to the expansion of unstable gas condensate production capacity at our Yurkharovskoye field as a result of the field’s ongoing development program. The increase in 2010 unstable gas condensate production allowed us to increase stable gas condensate and LPG sales volumes by 7.4% and 17.0%, respectively, compared to 2009.

At 31 December 2010, we had 264 thousand tons of stable gas condensate in transit or storage and recognized as inventory until such time as it is delivered to customers as compared to 111 thousand tons as of 31 December 2009. In 2010, our natural gas inventory balance as of 31 December 2010 increased to 790 million cubic meters compared to 744 million cubic meters at the end of the 2009 period.  

Selected Balance Sheet Items

(in millions of Russian roubles) 

  

 

31 December

2010

31 December

2009

ASSETS

  

    

Non-current assets

255,608

166,264

Property, plant and equipment

185,573

161,448

Total current assets

29,565

26,867

Assets held for sale

-

508

Total assets

285,173

193,639


LIABILITIES AND EQUITY

  

  

Non-current liabilities

59,946

36,602

Long-term debt

47,074

23,876

Current liabilities

57,441

23,593

Liabilities associated with assets held for sale

-

4

Total liabilities

117,387

60,199

Equity attributable to

OAO NOVATEK shareholders 

147,119

114,301

Non-controlling interest

20,667

19,139

Total equity

167,786

133,440

Total liabilities and equity

285,173

193,639

The full set of audited consolidated IFRS financial statements for the years ended 31 December 2010 and 2009 and the related notes thereto as well as Management’s Discussion and Analysis of Financial Condition and Results of Operations are available on the Company’s web site (www.novatek.ru).

Certain statements in this press release are not historical facts and are “forward looking” within the meaning of Section 27A of the Securities Act and Section 21E of the US Securities Exchange Act of 1934 (hereinafter, the Exchange Act). Forward looking statements include statements concerning our plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans or intentions relating to acquisitions, our competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, our business strategy and the trends we anticipate in the industries and the political and legal environment in which we operate and other information that is not historical information. By their very nature, forward looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward looking statements will not be achieved.


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”.

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