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NOVATEK announces second quarter and first half 2012 IFRS results
Mark Gyetvay, Deputy Chairman of the Management Board
Alexander Nazarov, Head of IR
+7 (495) 730-6013
Maria Dokuchaeva, Press-secretary
+7 (495) 721-2207
10 August 2012
Moscow, 10 August 2012. OAO NOVATEK today released its consolidated interim condensed financial information for the three and six months ended 30 June 2012 prepared in accordance with International Financial Reporting Standards (“IFRS”).
IFRS Financial and Operational Highlights
(in millions of Russian roubles unless otherwise stated)
Total revenues in the second quarter and first half 2012 increased by 11.1% and 16.4%, respectively, as compared to the corresponding periods in 2011, primarily due to higher natural gas and liquid hydrocarbons’ sales volumes.
Profit from operations increased by 1.4% and 3.3% in the second quarter and first half 2012, respectively, compared to the corresponding periods in 2011. Profit attributable to shareholders of OAO NOVATEK in the second quarter and first half 2012, decreased by 32.6% and 6.6%, resulting in earnings per share of RR 3.18 and RR 10.19, respectively, primarily due to non-cash foreign exchange losses in the amount of RR 5,299 million in the second quarter 2012 as compared to a non-cash gain of RR 766 million in the prior reporting period.
Profit attributable to shareholders of OAO NOVATEK in the second quarter 2012, excluding the effect of foreign exchange loss, increased to RR 14,962 million, or 10.3%, from RR 13,570 million in the corresponding period in 2011.
Selected Operating Highlights
In the second quarter and first half 2012, our natural gas sales volumes increased by 13.7% and 14.2%, respectively, compared to the corresponding periods in 2011. The increases were primarily due to the growth in NOVATEK’s production capacity combined with purchases of natural gas from the Company’s joint venture and other parties. At 30 June 2012, we recorded 1,050 million cubic meters of natural gas as inventory in underground storage as compared to 203 million cubic meters in the corresponding period.
In the second quarter 2012, our total liquids’ sales volumes increased by 9.2% compared to the corresponding periods in 2011, primarily due to an increase in liquid production from the East Tarkosalinskoye field and purchases of unstable gas condensate purchases from OOO SeverEnergia, our joint venture, after the launch of the first stage development at the Samburgskoye field in April 2012 as well as a decrease in liquids inventory balance. In first half 2012, our total liquids’ sales volumes increased by 1.9% compared to the corresponding period in 2011 due to gas condensate purchases and increase in total liquids production.
Selected Balance Sheet Items
(in millions of Russian roubles)
The full set of unaudited IFRS consolidated interim condensed 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”.
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