Press Releases and Events
NOVATEK announces second quarter and first half 2013 IFRS results
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.
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.
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 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. Upstream activities of the Company’s subsidiaries and joint ventures 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.