27th Apr 2016 10:00
FOR IMMEDIATE RELEASE
NOVATEK Announces Consolidated IFRS Resultsfor First Quarter 2016
Moscow, 27 April 2016. OAO NOVATEK today released its consolidated interim condensed financial statements as of and for the three months ended 31 March 2016 prepared in accordance with International Financial Reporting Standards ("IFRS").
IFRS Financial Highlights(in millions of Russian roubles)
1Q 2016 | 1Q 2015 | |
Oil and gas sales | 138,211 | 113,224 |
Other revenues | 1,140 | 518 |
Total revenues | 139,351 | 113,742 |
Operating expenses | (97,159) | (73,896) |
Net gain on disposal of interests in joint ventures | 73,072 | - |
Other operating income (loss) | 971 | (199) |
Profit from operations | 116,235 | 39,647 |
Normalized EBITDA of subsidiaries* | 50,823 | 44,704 |
Normalized EBITDA including share in EBITDA of joint ventures* | 62,136 | 54,832 |
Finance income (expense) | 916 | (7,246) |
Share of profit of joint ventures,net of income tax | 23,381 | 4,274 |
Profit before income tax | 140,532 | 36,675 |
Profit attributableto OAO NOVATEK shareholders | 115,917 | 31,075 |
Normalized profit attributableto OAO NOVATEK shareholders* | 58,240 | 31,075 |
Normalized earnings per share*(in Russian roubles) | 19.29 | 10.29 |
* Excluding the effect from disposal of interests in joint ventures.
In the first quarter 2016, our total revenues increased to RR 139.4 billion, or by 22.5% compared to the first quarter 2015 largely due to an increase in liquids sales volumes and the combined growth in natural gas sales prices and volumes. Decrease in net average sales prices in rouble terms for LPG and certain types of petroleum products had a negative impact on the dynamics of our revenues.
The Company's Normalized EBITDA, including our respective share in the EBITDA of joint ventures, amounted to RR 62.1 billion, representing a 13.3% increase compared to the EBITDA for the first quarter 2015. Profit attributable to NOVATEK shareholders increased by 3.7 times to RR 115.9 billion, as compared to RR 31.1 billion in the first quarter 2015. Profit for the first quarter 2016 was positively impacted by the closing of a transaction for the sale of a 9.9% equity stake in Yamal LNG to the Silk Road Fund of China. Excluding profit from this transaction, normalized profit attributable to NOVATEK shareholders totaled RR 58.2 billion, representing an 87.4% increase as compared to the prior reporting period. Our profit dynamics was also positively impacted by the non-cash items such as foreign exchange effect and the change in fair value of non-commodity financial instruments.
Our free cash flow increased by 49.5% to RR 45.4 billion as a result of operating cash flow growth by 37.0% and a decrease in cash used for capital expenditures.
Production and Purchased Volumes
1Q 2016 | 1Q 2015 | |
Natural gas production including proportionate share in the production of joint ventures, million cubic meters (mmcm) | 17,236 | 16,151 |
including production by subsidiaries, mmcm | 12,176 | 12,461 |
Natural gas purchases from joint ventures, mmcm | 2,749 | 1,623 |
Other purchases of natural gas, mmcm | 2,011 | 1,549 |
Total natural gas production by subsidiaries and purchases, mmcm | 16,936 | 15,633 |
Liquids production including proportionate share in the production of joint ventures, thousand tons (mt) | 3,208 | 1,991 |
including production by subsidiaries, mt | 1,855 | 1,056 |
Liquids purchases from joint ventures, mt | 2,531 | 1,703 |
Other purchases of liquids, mt | 31 | 4 |
Total liquids production by subsidiaries and purchases, mt | 4,417 | 2,763 |
Hydrocarbon Sales Volumes
1Q 2016 | 1Q 2015 | |
Natural gas, mmcm | 17,775 | 15,977 |
including sales to end-users | 16,094 | 15,077 |
Liquids, mt | 4,642 | 2,834 |
Including: | ||
Stable gas condensate products | 1,881 | 1,837 |
Crude oil | 1,188 | 271 |
Stable gas condensate | 868 | 276 |
Liquefied petroleum gas | 703 | 448 |
Other petroleum products | 2 | 2 |
Our natural gas sales volumes totalled 17.8 bcm, representing an 11.3% increase as compared to 16.0 bcm in the corresponding period in 2015. Higher natural gas sales volumes were a result of consumption recovery by one of our major customers following a temporary decline for technical reasons in the first quarter 2015, as well as the development of gas trading at the commodity exchange and higher volumes sold to traders. In the first quarter 2016 the total amount of natural gas recorded as inventory decreased by 898 mmcm to 429 mmcm as compared to a decrease by 395 mmcm in the first quarter 2015.
Liquid hydrocarbon sales volumes aggregated a record 4.6 million tons in the first quarter 2016 representing an increase of 63.8% as compared to the first quarter 2015. This significant increase was due to the launch of the Yarudeyskoye oil field and the Termokarstovoye gas and gas condensate field, as well as production growth at the Arcticgas fields and a decrease in inventory. As at 31 March 2016, 612 thousand tons of liquid hydrocarbons were in transit or storage and recognized as inventory representing a decrease by 298 thousand tons as compared to the end of 2015.
Selected Balance Sheet Items
(in millions of Russian roubles)
| 31 March 2016 | 31 December 2015 |
ASSETS | ||
Non-current assets | 771,682 | 751,552 |
Property, plant and equipment | 332,650 | 331,712 |
Investments in joint ventures | 180,913 | 154,725 |
Long-term loans and receivables | 227,200 | 230,799 |
Total current assets | 169,075 | 120,485 |
Assets held for sale | - | 7,987 |
Total assets | 940,757 | 880,024 |
LIABILITIES AND EQUITY | ||
Non-current liabilities | 246,552 | 282,178 |
Long-term debt | 214,849 | 252,050 |
Current liabilities | 144,567 | 169,675 |
Total liabilities | 391,119 | 451,853 |
Equity attributable to OAO NOVATEK shareholders
| 545,886 | 426,079 |
Non-controlling interest | 3,752 | 2,092 |
Total equity | 549,638 | 428,171 |
Total liabilities and equity | 940,757 | 880,024 |
The full set of consolidated interim condensed IFRS financial statements, 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).
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For further information, please visit www.novatek.ru or contact:
Press Service+7 (495) 721 2207press@novatek.ru | Investor Relations+7 (495) 730 6013IR@novatek.ru |
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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 80% of Russia's natural gas production and approximately 16% 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 Moscow Exchange (MOEX) and the London Stock Exchange (LSE) under the ticker symbol «NVTK».
Related Shares:
NVTK.L