RU EN
We are on social networks:

Press Releases and Events

NOVATEK announces consolidated IFRS results for the year ended 31 December 2011

Moscow, 07 March 2012. OAO NOVATEK today released its audited consolidated financial statements for the years ended 31 December 2011 and 2010 prepared in accordance with International Financial Reporting Standards (“IFRS”). 
 
IFRS Financial and Operational Highlights
(in millions of Russian roubles)
 
 
 
FY 2011
FY 2010
Revenues
  
 
 Oil and gas sales
175,602
115,162
Sales of polymer and insulation tape
-
1,699
Other revenues
462
163
Total revenues
176,064
117,024
Total operating expenses
(97,665)
(68,518)
Net gain on disposal of interest in subsidiaries
62,948
1,329
Other operating income (loss)
261
396
Profit from operations
141,608
50,231
Finance income (expense)
(2,703)
1,197
Profit before income tax
135,025
51,082
Profit (loss)
119,291
40,278
Profit (loss) attributable to OAO NOVATEK shareholders
119,655
40,533
Basic and diluted earnings per share
(in Russian roubles)
39.45
13.37
Profit attributable to OAO NOVATEK shareholders, excluding net gain on disposal
56,707
39,204
Basic and diluted earnings per share, excluding net gain on disposal (in Russian roubles)
18.69
12.93
 
Total revenues grew by 50.5% year-on-year to RR 176,064 million for the twelve months ended 31 December 2011 from RR 117,024 million in the corresponding period of 2010, reflecting the overall growth in our hydrocarbon production and sales volumes as well as higher prices for both natural gas and liquid hydrocarbons. 
 
Profit attributable to NOVATEK shareholders increased by 195.2% to
RR 119,655million, or RR 39.45 per share, as compared to RR 40,533 million, or
RR 13.37 per share, for the corresponding period in 2010, as a result of the higher revenues, our ability to decrease costs as a percentage of total revenues and the net gain realized on the disposal of a 20% equity interest in Yamal LNG. Profit attributable to NOVATEK shareholders in 2011, excluding the net gain on disposal, increased by 44.6% to RR 56,707 million, as compared to RR 39,204 million in 2010.
 
Selected Operating Highlights
 
Production and Purchased Volumes
FY 2011
FY 2010
Natural gas production, million cubic meters (mmcm)
47,521
37,261
Equity share in natural gas production from joint ventures, mmcm
5,384
-
Natural gas purchases, mmcm
841
-
Total natural gas production and purchases, mmcm
53,746
37,261
Liquids production, thousand tons (mt)
4,111
3,617
Liquids purchases, mt
6
12
Total liquids production and purchases, mt
4,117
3,629
 
Sales Volumes
FY 2011
FY 2010
Natural gas, mmcm
53,667
37,117
Stable gas condensate, mt
2,984
2,330
Liquefied petroleum gas, mt
880
876
Crude oil, mt
242
185
Oil products, mt
5
10
 
In 2011, our total net natural gas production, including our equity interest in Sibneftegas’ production, increased by 15,644 million cubic meters, or 42.0% compared to 2010, primarily due to an increase in production at our Yurkharovskoye and East-Tarkosalinskoye fields, as well as the consolidation of our share in Sibneftegas’ production. Our total natural gas sales volumes increased by 16,550 million cubic meters, or 44.6%, in 2011 primarily due to the increase in net production.
 
Our liquids production increased by 494 thousand tons, or 13.7%, to 4,111 thousand tons compared to 3,617 thousand tons in 2010, due to the expansion of unstable gas condensate production capacity at our Yurkharovskoye field from the field’s on-going development program. During the year, our liquids sales volumes increased by 710 thousand tons, or 20.9%, as a result of the increase in production and a decrease in inventory balances. Also, in 2010 we launched our wholly owned gas condensate pipeline which required a one-time fill of approximately 36 thousand tons of unstable gas condensate.
 
At 31 December 2011, we had 228 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 264 thousand tons as of 31 December 2010. In 2011, our natural gas inventory balance as of 31 December 2011 decreased to 760 million cubic meters compared to 790 million cubic meters at the end of the 2010 period.
 
   
Selected Balance Sheet Items
(in millions of Russian roubles)
 

 
 
31 December 2011
31 December 2010
ASSETS
 
 
Non-current assets
325,116
255,608
Property, plant and equipment
166,784
185,573
Investments in joint ventures
123,029
27,026
Total current assets
58,316
29,565
Total assets
383,432
285,173
LIABILITIES AND EQUITY
 
 
Non-current liabilities
91,636
59,946
Long-term debt
75,180
47,074
Current liabilities
50,114
57,441
Total liabilities
141,750
117,387
Equity attributable to
OAO NOVATEK shareholders
 
241,013
147,119
Non-controlling interest
669
20,667
Total equity
241,682
167,786
Total liabilities and equity
383,432
285,173

 
The full set of audited consolidated IFRS financial statements for the years ended
31 December 2011 and 2010 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 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”.