25th Oct 2017 12:00
FOR IMMEDIATE RELEASE
NOVATEK Announces Consolidated IFRS Resultsfor the Third Quarter and the Nine Months 2017
Moscow, 25 October 2017. PAO NOVATEK today released its consolidated interim condensed financial statements as of and for the three and nine months ended 30 September 2017 prepared in accordance with International Financial Reporting Standards ("IFRS").
IFRS Financial Highlights(in millions of Russian roubles except as stated)
3Q 2017 | 3Q 2016 | 9M 2017 | 9M 2016 | |
129,970 | 125,767 | Oil and gas sales | 412,001 | 390,441 |
733 | 716 | Other revenues | 2,160 | 2,781 |
130,703 | 126,483 | Total revenues | 414,161 | 393,222 |
(94,385) | (93,458) | Operating expenses | (297,782) | (280,636) |
- | - | Net gain on disposal of interests in joint ventures | - | 73,072 |
(222) | 707 | Other operating income (loss) | 403 | (53) |
36,096 | 33,732 | Profit from operations | 116,782 | 185,605 |
45,094 | 43,833 | Normalized EBITDA of subsidiaries* | 142,707 | 140,932 |
59,270 | 57,726 | Normalized EBITDA including share in EBITDA of joint ventures* | 183,522 | 179,369 |
5,061 | 1,101 | Finance income (expense) | 9,873 | 2,091 |
6,875 | 9,401 | Share of profit (loss) of joint ventures,net of income tax | 16,733 | 52,405 |
48,032 | 44,234 | Profit before income tax | 143,388 | 240,101 |
37,737 | 36,494 | Profit attributable to shareholders of PAO NOVATEK | 111,998 | 198,345 |
34,905 | 31,236 | Normalized profit attributable toshareholders of PAO NOVATEK ** | 113,022 | 97,745 |
11.57 | 10.35 | Normalized basic and diluted earnings per share** (in Russian roubles) | 37.47 | 32.38 |
* Excluding the effect from disposal of interests in joint ventures.
** Excluding the effects from the disposal of interests in joint ventures, as well as foreign exchange gains (losses).
In the third quarter of 2017, our total revenues amounted to RR 130.7 billion and Normalized EBITDA, including our share in EBITDA of joint ventures, totalled RR 59.3 billion, representing increases of 3.3% and 2.7%, respectively, as compared to the corresponding period in 2016. In the nine months 2017, our total revenues amounted to RR 414.2 billion and Normalized EBITDA, including our share in EBITDA of joint ventures, totalled RR 183.5 billion, representing increases of 5.3% and 2.3%, respectively, as compared to the corresponding period in 2016. The increases in total revenues and Normalized EBITDA in both periods were largely due to an increase in liquids and natural gas sales prices.
Profit attributable to shareholders of PAO NOVATEK increased to RR 37.7 billion (RR 12.51 per share), or by 3.4%, in the third quarter of 2017 and decreased to RR 112.0 billion (RR 37.13 per share), or by 43.5%, in the nine months 2017 as compared to the corresponding periods of 2016. In 2016, our profit was significantly impacted by the closing in the first quarter 2016 of a transaction for the sale of a 9.9% equity stake in Yamal LNG, as well as by the foreign exchange differences (including at the joint ventures level). Excluding these effects, Normalized profit attributable to shareholders of PAO NOVATEK totalled RR 34.9 billion (RR 11.57 per share) in the third quarter 2017 and RR 113.0 billion (RR 37.47 per share) in the nine months 2017, representing an increase of 11.7% and 15.6%, respectively, as compared to the corresponding periods of 2016.
Marketable Hydrocarbon Production and Purchased Volumes
3Q 2017 | 3Q 2016 | 9M 2017 | 9M 2016 | |
122.4 | 131.5 | Total hydrocarbon production, million barrels of oil equivalent (boe) | 374.7 | 405.0 |
1.33 | 1.43 | Total production (million boe per day) | 1.37 | 1.48 |
14,998 | 16,195 | Natural gas production including proportionate share in the production of joint ventures, million cubic meters (mmcm) | 46,032 | 49,952 |
10,153 | 11,304 | Natural gas production by subsidiaries | 31,674 | 35,082 |
2,165 | 1,812 | Natural gas purchases from joint ventures | 9,822 | 6,401 |
2,407 | 2,174 | Other purchases of natural gas | 6,203 | 6,124 |
14,725 | 15,290 | Total natural gas production by subsidiaries and purchases (mmcm) | 47,699 | 47,607 |
2,921 | 3,060 | Liquids production including proportionate share in the production of joint ventures,thousand tons (mt) | 8,806 | 9,387 |
1,683 | 1,784 | Liquids production by subsidiaries | 5,083 | 5,448 |
2,312 | 2,382 | Liquids purchases from joint ventures | 6,951 | 7,363 |
53 | 42 | Other purchases of liquids | 131 | 86 |
4,048 | 4,208 | Total liquids production by subsidiaries and purchases (mt) | 12,165 | 12,897 |
Hydrocarbon Sales Volumes
3Q 2017 | 3Q 2016 | 9M 2017 | 9M 2016 | |
13,888 | 14,456 | Natural gas (mmcm) | 47,020 | 46,293 |
13,388 | 13,445 | including sales to end-customers | 44,497 | 42,584 |
3,720 | 4,183 | Liquids (mt) | 11,905 | 12,964 |
including: | ||||
1,477 | 1,647 | Stable gas condensate refined products | 5,077 | 5,212 |
1,108 | 1,157 | Crude oil | 3,391 | 3,502 |
656 | 660 | Liquefied petroleum gas | 1,978 | 2,019 |
475 | 715 | Stable gas condensate | 1,449 | 2,222 |
4 | 4 | Other petroleum products | 10 | 9 |
In the third quarter 2017, our natural gas sales volumes totalled 13.9 billion cubic meters (bcm), representing a decrease of 3.9% as compared to the corresponding period in 2016, and were in line with the planned contracted delivery schedule. Overall, in the nine months 2017, our natural gas sales volumes totalled 47.0 bcm representing an increase of 1.6% as compared to the corresponding period in 2016 due to the increased demand for natural gas from end-customers in the first half of 2017 resulted, among other factors, from weather conditions. As at 30 September 2017, the amount of natural gas recorded as inventory totalled 1.4 bcm as compared to 2.5 bcm at the end of the third quarter of 2016.
In the third quarter 2017, liquid hydrocarbons sales volumes amounted to 3.7 million tons, representing an 11.1% decrease in volumes sold as compared to the third quarter 2016. In the nine months 2017, liquid hydrocarbon sales volumes totalled 11.9 million tons, representing an 8.2% decrease as compared to the nine months 2016. The decrease in both periods was due to a natural decline in gas condensate production volumes at mature fields of our subsidiaries and joint ventures, as well as an increase in liquids inventories as compared to a decrease in the corresponding periods in 2016. As at 30 September 2017, we recorded 969 mt of liquid hydrocarbons in transit or storage and recognized as inventory as compared to 626 mt at 30 September 2016.
Selected Items of Consolidated Statement of Financial Position
(in millions of Russian roubles)
| 30 September 2017 | 31 December 2016 |
ASSETS | ||
Non-current assets | 857,594 | 831,074 |
Property, plant and equipment | 341,506 | 331,795 |
Investments in joint ventures | 277,223 | 259,650 |
Long-term loans and receivables | 207,037 | 209,145 |
Current assets | 150,190 | 132,760 |
Total assets | 1,007,784 | 963,834 |
LIABILITIES AND EQUITY | ||
Non-current liabilities | 184,426 | 197,323 |
Long-term debt | 142,189 | 161,296 |
Current liabilities | 92,980 | 108,791 |
Total liabilities | 277,406 | 306,114 |
Equity attributable toPAO NOVATEK shareholders
| 714,390 | 648,350 |
Non-controlling interest | 15,988 | 9,370 |
Total equity | 730,378 | 657,720 |
Total liabilities and equity | 1,007,784 | 963,834 |
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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PAO NOVATEK is one of the largest independent natural gas producers 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 a public 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