NVTK: OAO Novatek: NOVATEK announces second quarter and first half 2013 IFRS results UK Regulatory Announcement MOSCOW 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 (5,379) 27 (expense) 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 34,428 30,908 shareholders of OAO NOVATEK Basic and diluted earnings 3.83 3.18 per share 11.36 10.19 (in Russian roubles) 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 Natural gas production, 12,784 12,458 26,449 25,503 million cubic meters (mmcm) 1,870 1,268 Natural gas purchases from joint 3,823 2,677 ventures, mmcm 1,365 800 Other purchases of natural gas, 3,479 1,700 mmcm 16,019 14,526 Total natural gas production and 33,751 29,880 purchases, mmcm 1,103 1,027 Liquids production, thousand tons 2,199 2,107 (mt) 265 58 Liquids purchases from joint 504 58 ventures, mt 2 3 Other purchases of liquids, mt 4 5 1,370 1,088 Total liquids production and 2,707 2,170 purchases, mt 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, 29,640 20,533 mmcm 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 311,841 290,050 OAO NOVATEK shareholders 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). *** For further information, please contact: Press Service +7 (495) 721 2207 Investor Relations email@example.com +7 (495) 730 6013 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 90% 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 second quarter and first half 2013 IFRS results
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