NOVATEK Announces Second Quarter And First Half 2013 IFRS Results

      NOVATEK Announces Second Quarter And First Half 2013 IFRS Results

PR Newswire

MOSCOW, Aug. 9, 2013

MOSCOW, Aug.9, 2013 /PRNewswire/ --OAO NOVATEK ("NOVATEK" and/or the
"Company") 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
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  18329   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  9663    Profit (loss) attributable to shareholders of  34,428  30,908
                OAO NOVATEK
3.83    3.18    Basic and diluted earnings per share (in       11.36   10.19
                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 2 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
12,784  12,458  Natural gas production, million cubic meters   26,449  25,503
1,870   1,268   Natural gas purchases from joint ventures,     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,    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      4       5
1,370   1,088   Total liquids production and purchases, mt     2,707   2,170
Sales Volume
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          29.64   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 3 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-Jun-13 31-Dec-12
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
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

OAO NOVATEK is Russia's largest independent gas producer and the
second-largest natural gas producer in Russia. Founded in 1994, NOVATEK is
engaged in the exploration, production, processing and marketing of natural
gas and liquid hydrocarbons. Its 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.
NOVATEK's shares and GDRs are listed on MICEX-RTS Stock Exchange in Russia and
the London Stock Exchange (LSE), respectively, under the ticker symbol "NVTK".