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NVTK: OAO Novatek: NOVATEK announces consolidated IFRS results for the year ended 31 December 2012

  NVTK: OAO Novatek: NOVATEK announces consolidated IFRS results for the year
  ended 31 December 2012

UK Regulatory Announcement



                     FOR THE YEAR ENDED 31 DECEMBER 2012

Moscow, 7 March 2013. OAO NOVATEK today released its audited consolidated
financial statements for the years ended 31 December 2012 and 2011 prepared in
accordance with the International Financial Reporting Standards (“IFRS”).

                  IFRS Financial and Operational Highlights

                       (in millions of Russian roubles)

                                                       FY 2012     FY 2011
Oil and gas sales                                      210,246     174,811
Other revenues                                         727         462
Total revenues                                         210,973     175,273
Operating expenses                                     (125,775)   (96,820)
Gain (loss) on disposal of interests in subsidiaries   (60)        62,948
Other operating income                                 196         207
Profit from operations                                 85,334      141,608
Finance income (expense)                               2,986       (2,703)
Profit before income tax                               86,215      135,025
Profit                                                 69,441      119,291
Profit attributable                                    69,458      119,655
to OAO NOVATEK shareholders
Adjusted profit attributable                           69,518      56,707
to OAO NOVATEK shareholders*
Basic and diluted earnings per share ^
                                                       22.89       39.45
(in Russian roubles)
Adjusted basic and diluted earnings per share*         22.91       18.69
(in Russian roubles)

* excluding gain (loss) on disposal of interests in subsidiaries.

Total revenues grew by 20.4% year-on-year to RR 211.0 billion for the twelve
months ended 31 December 2012 from RR 175.3 billion in 2011. The growth was
due to an increase in hydrocarbon sales volumes and higher natural gas and
liquids prices.

In 2012, profit from operations, adjusted for gain (loss) on disposal of
interests in subsidiaries, amounted to RR 85.4 billion, increasing by 8.6% as
compared with 2011. Profit from operations for 2011 includes the gain from the
disposal of a 20% equity interest in Yamal LNG of RR 62.9 billion.

Profit attributable to NOVATEK shareholders, adjusted for gain (loss) on
disposal of interests in subsidiaries, increased by 22.6% in 2012 to RR 69.5
billion, or by RR 22.91 per share, as compared to RR 56.7 billion, or by RR
18.69 per share in 2011.

                        Selected Operating Highlights

Production and Purchased Volumes                        FY 2012   FY 2011
Natural gas production, million cubic meters (mmcm)     50,507    47,521
Natural gas purchases from joint ventures, mmcm         5,335     5,384
Other purchases of natural gas, mmcm                    3,533     841
Total natural gas production and purchases, mmcm        59,375    53,746
Liquids production, thousand tons (mt)                  4,193     4,111
Liquids purchases from joint ventures, mt               259       -
Other purchases of liquids, mt                          38        6
Total liquids production and purchases, mt              4,490     4,117

Sales                                    FY 2012                       FY
Volumes                                                                2011
Natural gas,                             58,880                        53,667
Stable gas
condensate,                              2,847                         2,984
petroleum                                905                           880
gas, mt
Crude oil,                               442                           242

In 2012, natural gas sales volumes increased to 58.9 billion cubic meters
(bcm), or by 9.7%, as compared with 2011, due to growth in production from our
subsidiaries, which was mainly driven by the launch of the fourth stage of
Phase Two development at the Yurkharovskoye field, as well as an increase in
purchases of natural gas. As at 31 December 2012, the total amount of natural
gas injected into underground gas storage facilities and reflected as
inventory aggregated 1,096 million cubic meters (mmcm), as compared with 732
mmcm at the year-end 2011.

Liquid hydrocarbon sales volumes aggregated 4,203 thousand tons in 2012
increasing by 2.2% as compared with 2011. The increase is due to the
commencement of gas condensate purchases from joint ventures and production
growth from our subsidiaries, mainly an increase in crude oil output at the
East-Tarkosalinskoye field. The growth in liquids sales volumes was
constrained by a significant increase in stable gas condensate inventories due
to redirection of sales to Asian-Pacific region that were in seaborne transit
and not recognized as revenues in the current reporting period. As at the
year-end, 461 thousand tons of stable gas condensate was in transit or storage
and recognized as inventory, as compared with 228 thousand tons as at 31
December 2011.

                         Selected Balance Sheet Items

                       (in millions of Russian roubles)

                                      31 December 2012       31 December 2011
Non-current assets                    404,890                325,116
Property, plant and                   197,376                166,784
Investments in joint                  189,136                123,029
Total current assets                  58,243                 58,316
Total assets                          463,133                383,432
Non-current liabilities               116,702                91,636
Long-term debt                        97,805                 75,180
Current liabilities                   55,130                 50,114
Total liabilities                     171,832                141,750
Equity attributable to
                                      290,050                241,013
OAO NOVATEK shareholders
Non-controlling interest              1,251                  669
Total equity                          291,301                241,682
Total liabilities and                 463,133                383,432

The full set of audited consolidated IFRS financial statements for the years

31 December 2012 and 2011 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 website (

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.


For further information, please visit or contact:

Press Service           Investor Relations
+7 (495) 721 2207       +7 (495) 730 6013


OAO NOVATEK is Russia’s largest independent gas producer and the
second-largest natural gas producer in Russia. 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 in the prolific Yamal-Nenets Autonomous Region, which is the
world’s largest natural gas producing area and accounts for approximately 84%
of Russia’s natural gas production and approximately 17% of the world’s gas
production. NOVATEK is an open joint stock company established under the laws
of the Russian Federation. The Company’s shares are listed in Russia on
MICEX-RTS Stock Exchange and the London Stock Exchange (LSE) under the ticker
symbol “NVTK”.


OAO Novatek
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