NOVATEK announces second quarter and first half 2013 IFRS results

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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09 August 2013

Moscow, 09 August 2013. OAO NOVATEK today released its consolidated interim condensed financial information for the three and six months ended 30 June 2013 prepared in accordance with International Financial Reporting Standards (“IFRS”). 

 
IFRS Financial and Operational Highlights
(in millions of Russian roubles unless otherwise stated)
 
2Q 2013
2Q 2012
 
1H 2013
1H 2012
 
 
Revenues
 
 
57,918
44,763
Oil and gas sales
138,366
98,639
112
161
Other revenues
229
382
58,030
44,924
Total revenues
138,595
99,021
(39,613)
(26,559)
Total operating expenses
(90,669)
(58,134)
(34)
(36)
Other operating income (loss)
657
5
18,383
18,329
Profit from operations
48,583
40,892
21,141
20,414
EBITDA
54,161
44,631
(3,455)
(5,597)
Total finance income (expense)
(5,379)
27
14,456
12,211
Profit before income tax
42,895
39,407
11,583
9,657
Profit (loss)
34,396
30,896
11,602
9,663
Profit (loss) attributable to
shareholders of OAO NOVATEK
34,428
30,908
3.83
3.18
Basic and diluted earnings per share
(in Russian roubles)
11.36
10.19
 
 
Total revenues in the second quarter and first half 2013 increased by 29.2% and 40.0%, respectively, as compared to the corresponding periods in 2012. The growth in total revenues was mainly due to increase in natural gas sales volumes and higher average natural gas prices as a result of significant expansion of the share of end-users in our total gas volumes sales mix. Revenues growth in the first half 2013 was also due to an increase in liquid hydrocarbon sales volumes.
 
In the second quarter 2013, we recorded a year-on-year increase of 3.6% in EBITDA, which amounted to RR 21.1 billion. The lower EBITDA growth rate was mainly due to a decrease in the share of liquid hydrocarbons in our total sales volumes mix, which was driven by an increase in inventory balances of stable gas condensate and the corresponding oil products processed following the launch of the first stage of the Gas Condensate Fractionation and Transshipment Complex at the port of Ust-Luga in late June. In the first half 2013, EBITDA amounted to
RR 54.2 billion, representing an increase of 21.4% as compared with the first half 2012.
 
Profit attributable to shareholders of OAO NOVATEK in the second quarter 2013 increased to
RR 11.6 billion (RR 3.83 per share), or by 20.1%, as compared to the second quarter 2012. Profit attributable to shareholders of OAO NOVATEK in the first half 2013 increased to RR 34.4 billion (RR 11.36 per share), or by 11.4%, as compared to the first half 2012. The dynamics of profit was impacted by non-cash foreign exchange effect.
 
Production and Purchase Volumes
2Q 2013
2Q 2012
 
1H 2013
1H 2012
12,784
12,458
Natural gas production,
million cubic meters (mmcm)
26,449
25,503
1,870
1,268
Natural gas purchases from joint ventures,
mmcm
3,823
2,677
1,365
800
Other purchases of natural gas, mmcm
3,479
1,700
16,019
14,526
Total natural gas production and
purchases, mmcm
33,751
29,880
1,103
1,027
Liquids production, thousand tons (mt)
2,199
2,107
265
58
Liquids purchases from joint ventures, mt
504
58
2
3
Other purchases of liquids, mt
4
5
1,370
1,088
Total liquids production and
purchases, mt
2,707
2,170
 
 
Sales Volumes
2Q 2013
2Q 2012
 
1H 2013
1H 2012
14,628
13,447
Natural gas, mmcm
33,367
29,497
13,008
8,361
including sales to end-users, mmcm
29,640
20,533
632
794
Stable gas condensate, mt
1,842
1,418
261
224
Liquefied petroleum gas, mt
526
462
164
101
Crude oil, mt
301
185
 
 
In the second quarter and first half 2013, our natural gas sales volumes increased by 8.8% and 13.1%, respectively, as compared to the corresponding periods in 2012, due to growth in production at the Yurkharovskoye field and an increase in purchases of natural gas. At 30 June 2013, we recorded 1,411 million cubic meters of natural gas as inventory in underground storages as compared to 1,050 million cubic meters in the corresponding period of 2012.
 
In the second quarter 2013, our total liquid hydrocarbon sales volumes decreased by 5.4%, as compared to the corresponding period in 2012, despite higher production volumes. The decrease was primarily due to inventory build-up following the start of stable gas condensate processing at the Ust-Luga Complex. Liquid hydrocarbon sales volumes in the first half 2013, increased by 29.2% compared to the corresponding period in 2012. The increase was mainly due to the commencement of gas condensate purchases from joint ventures and production growth from our subsidiaries. At 30 June 2013, 447 thousand tons of stable gas condensate and oil products were in transit or storage and recognized as inventory, as compared with 295 thousand tons of stable gas condensate as at 30 June 2012.
 
Selected Items from the
Statement of Financial Position
(in millions of Russian roubles)
 
  
 
30 June 2013
31 December 2012
ASSETS
 
 
Non-current assets
439,666
404,890
Property, plant and equipment
222,806
197,376
Investments in joint ventures
193,330
189,136
Current assets
47,198
58,243
Total assets
486,864
463,133
LIABILITIES AND EQUITY
 
 
Non-current liabilities
153,688
116,702
Long-term debt
132,619
97,805
Current liabilities
20,116
55,130
Total liabilities
173,804
171,832
Equity attributable to
OAO NOVATEK shareholders
 
311,841
290,050
Non-controlling interest
1,219
1,251
Total equity
313,060
291,301
Total liabilities and equity
486,864
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).

PAO NOVATEK is the largest independent natural gas producer 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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