NOVATEK announces consolidated IFRS results for the first quarter 2013

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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13 May 2013

Moscow, 13 May 2013. OAO NOVATEK today released its consolidated interim condensed financial information as of and for the three months ended 31 March 2013 prepared in accordance with International Financial Reporting Standards (“IFRS”).
 
IFRS Financial and Operational Highlights
(in millions of Russian roubles)

 
1Q 2013
1Q 2012
Revenues
Oil and gas sales
80,448
53,876
Other revenues
117
221
Total revenues
80,565
54,097
Total operating expenses
(51,056)
(31,575)
Other operating income (loss)
691
41
Profit from operations
30,200
22,563
EBITDA
32,905
24,217
Finance income (expense)
(1,924)
5,624
Profit before income tax
28,324
27,196
Profit (loss)
22,698
21,239
Profit (loss) attributable toshareholders of
OAO NOVATEK
22,711
21,245
Basic and diluted earnings per share
(in Russian roubles)
7.49
7.00

 
In the first quarter 2013, our total revenues grew by 48.9% to RR 80.6 billion compared to RR 54.1 billion in the corresponding period of 2012. The growth was due to an increase in hydrocarbon sales volumes and higher average natural gas prices, which was mainly driven by significant expansion of the share of end-users in our total gas volumes sales mix.
 
We recorded a year-on-year increase of 35.9% in EBITDA, which amounted to RR 32.9 billion in the first quarter 2013.
 
Profit attributable to NOVATEK shareholders increased to RR 22.7 billion (RR 7.49 per share), or by 6.9% as compared to the first quarter 2012. The overall profit growth for the reporting period was offset by a non-cash foreign exchange loss in the first quarter 2013 as compared to a non-cash gain in the same period of 2012.
 

Production and Purchased Volumes
1Q2013
1Q2012
Natural gas production,
million cubic meters (mmcm)
13,665
13,045
Natural gas purchases from joint ventures, mmcm
1,953
1,409
Other purchases of natural gas, mmcm
2,114
900
Total natural gas production and purchases, mmcm
17,732
15,354
Liquids production, thousand tons (mt)
1,096
1,080
Liquids purchases from joint ventures, mt
239
-
Other purchases of liquids, mt
2
2
Total liquids production and purchases, mt
1,337
1,082

 
Sales Volumes
1Q2013
1Q2012
Natural gas, mmcm
18,739
16,050
        including sales to end-users, mmcm
16,632
12,172
Stable gas condensate, mt
1,210
624
Liquefied petroleum gas, mt
265
238
Crude oil, mt
137
84
 
In the first quarter 2013, natural gas sales volumes increased to 18.7 billion cubic meters, or by 16.8% as compared to the corresponding period of 2012, due to growth in production at the Yurkharovskoye field following the launch of the fourth stage of Phase Two development of the field, as well as an increase in purchases of natural gas. As at 31 March 2013, the total amount of natural gas injected into underground gas storage facilities and reflected as inventory aggregated 33 million cubic meters (mmcm), as compared with 1,096 mmcm at the year-end 2012.
 
Liquid hydrocarbon sales volumes aggregated 1,614 thousand tons increasing by 70.3% as compared with the first quarter 2012. The increase was due to the commencement of gas condensate purchases from joint ventures, production growth from our subsidiaries, mainly an increase in crude oil output at the East-Tarkosalinskoye field, as well as due to a decrease in stable gas condensate inventories as compared to an increase in the first quarter 2012. As at 31 March 2013, 159 thousand tons of stable gas condensate was in transit or storage and recognized as inventory, as compared with 461 thousand tons as at 31 December 2012.
 
Selected Items from the
Statement of Financial Position
(in millions of Russian roubles)
 

 
 
31 March 2013
31 December 2012
ASSETS
 
 
Non-current assets
423,180
404,890
Property, plant and equipment
205,499
197,376
Investments in joint ventures
191,469
189,136
Current assets
59,049
58,243
Total assets
482,229
463,133
LIABILITIES AND EQUITY
 
 
Non-current liabilities
133,170
116,702
Long-term debt
113,305
97,805
Current liabilities
35,485
55,130
Total liabilities
168,655
171,832
Equity attributable to
OAO NOVATEK shareholders
 
312,336
290,050
Non-controlling interest
1,238
1,251
Total equity
313,574
291,301
Total liabilities and equity
482,229
463,133

 
 
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 ).
 
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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