NVTK: OAO Novatek: NOVATEK announces consolidated IFRS results for the year ended 31 December 2012 UK Regulatory Announcement MOSCOW NOVATEK ANNOUNCES CONSOLIDATED IFRS RESULTS 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 mmcm Stable gas condensate, 2,847 2,984 mt Liquefied petroleum 905 880 gas, mt Crude oil, 442 242 mt 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 ASSETS Non-current assets 404,890 325,116 Property, plant and 197,376 166,784 equipment Investments in joint 189,136 123,029 ventures Total current assets 58,243 58,316 Total assets 463,133 383,432 LIABILITIES AND EQUITY 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 equity The full set of audited consolidated IFRS financial statements for the years ended 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 (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. *** For further information, please visit www.novatek.ru or contact: Press Service Investor Relations +7 (495) 721 2207 +7 (495) 730 6013 firstname.lastname@example.org IR@novatek.ru *** 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”. Contact: OAO Novatek
NVTK: OAO Novatek: NOVATEK announces consolidated IFRS results for the year ended 31 December 2012
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