21st Feb 2017 15:15
FOR IMMEDIATE RELEASE
NOVATEK announces consolidated IFRS resultsfor the year ended 31 December 2016
Moscow, 21 February 2017. PAO NOVATEK today released its audited consolidated financial statements for the year ended 31 December 2016 prepared in accordance with the International Financial Reporting Standards ("IFRS").
IFRS Financial Highlights(in millions of Russian roubles)
FY 2016 | FY 2015 | |
Oil and gas sales | 533,857 | 472,007 |
Other revenues | 3,615 | 3,318 |
Total revenues | 537,472 | 475,325 |
Operating expenses | (385,499) | (335,042) |
Net gain on disposal of interests in joint ventures | 73,072 | 989 |
Other operating income (loss), net | 221 | (542) |
Profit from operations* | 152,194 | 139,741 |
Normalized EBITDA of subsidiaries* | 188,781 | 160,523 |
Normalized EBITDA including share in EBITDA of joint ventures* | 242,407 | 214,189 |
Finance expense | (7,941) | (16,182) |
Share of profit (loss) of joint ventures,net of income tax | 90,839 | (31,607) |
Profit before income tax | 308,164 | 92,941 |
Profit attributableto shareholders of PAO NOVATEK | 257,795 | 74,396 |
Normalized profit** attributableto shareholders of PAO NOVATEK | 133,759 | 132,509 |
Normalized earnings per share**(in Russian roubles) | 44.31 | 43.87 |
* Before disposals of interests in joint ventures.
** Excluding the effect from the disposal of interests in joint ventures, as well as the effect of foreign exchange gains (losses).
For the twelve months ended 31 December 2016, total revenues increased by 13.1% year-on-year to RR 537.5 billion. We also recorded an increase of 13.2% in the Company's Normalized EBITDA, including our respective share in the EBITDA of joint ventures, which totaled RR 242.4 billion. The growth in our revenues and EBITDA was largely driven by the increase in natural gas and liquids sales volumes as well as an increase in the proportion of liquids sold in our total sales mix.
Profit attributable to NOVATEK shareholders increased by more than three-fold to RR 257.8 billion (RR 85.41 per share), as compared to RR 74.4 billion (RR 24.63 per share) in 2015. The amount of profit and its dynamics were significantly impacted by the foreign exchange effect (including at the joint ventures level), as well as the effect of the disposals of interests in joint ventures.
Our free cash flow increased significantly to RR 139.4 billion, or by 69.4%, as a result of operating cash flow growth by 30.8% and a decrease in cash used for capital expenditures by 32.0% as compared to 2015.
Production and Purchased Volumes
FY 2016 | FY 2015 | |
Total production, million barrels of oil equivalent | 537.0 | 521.6 |
Natural gas production including proportionate share in the production of joint ventures, million cubic meters (mmcm) | 66,103 | 67,905 |
Natural gas production by subsidiaries, mmcm | 46,235 | 49,172 |
Natural gas purchases from joint ventures, mmcm | 10,058 | 7,152 |
Other purchases of natural gas, mmcm | 8,108 | 6,626 |
Total natural gas production by subsidiaries and purchases, mmcm | 64,401 | 62,950 |
Liquids production including proportionate share in the production of joint ventures, thousand tons (mt) | 12,441 | 9,094 |
Liquids production by subsidiaries, mt | 7,194 | 4,198 |
Liquids purchases from joint ventures, mt | 9,809 | 9,045 |
Other purchases of liquids, mt | 124 | 94 |
Total liquids production by subsidiaries and purchases, mt | 17,127 | 13,337 |
Total marketable production including the Company's share in production of joint ventures aggregated at 537.0 million barrels of oil equivalent, representing a 3.0% increase as compared with 2015. The production growth was due to the successful launches of NOVATEK's new producing capacities, including joint ventures, in 2015.
Hydrocarbon Sales Volumes
FY 2016 | FY 2015 | |
Natural gas, mmcm | 64,709 | 62,465 |
including sales to end-users, mmcm | 59,646 | 58,054 |
Liquids, mt | 16,850 | 12,888 |
including: | ||
Gas condensate refined products | 6,662 | 6,693 |
Crude oil | 4,650 | 1,090 |
Stable gas condensate | 2,812 | 2,786 |
Liquefied petroleum gas | 2,713 | 2,306 |
Other oil products | 13 | 13 |
In 2016, natural gas sales volumes increased to 64.7 billion cubic meters (bcm), or by 3.6%, as compared with 2015, due to restoring sales to one of our major customers who did not take full contracted volumes in 2015 due to technical reasons, as well as sales of additional natural gas volumes to our end-customers and wholesale traders.
Our liquid hydrocarbon sales volumes totaled 16.9 million tons, representing a significant increase of 30.7% as compared with 2015. The significant increase was due to the high growth in liquids production due to the successful launches of the Yarudeyskoye crude oil field in December 2015 and the Yaro-Yakhinskoye and the Termokarstovoye gas condensate fields in the first half 2015. As at 31 December 2016, 903 thousand tons of liquid hydrocarbons were in transit or storage and recognized as inventory.
Selected Balance Sheet Items
(in millions of Russian roubles)
| 31 December 2016 | 31 December 2015 |
ASSETS | ||
Non-current assets | 831,074 | 751,552 |
Property, plant and equipment | 331,795 | 331,712 |
Investments in joint ventures | 259,650 | 154,725 |
Long-term loans and receivables | 209,145 | 230,799 |
Total current assets | 132,760 | 120,485 |
Assets held for sale | - | 7,987 |
Total assets | 963,834 | 880,024 |
LIABILITIES AND EQUITY | ||
Non-current liabilities | 197,323 | 282,178 |
Long-term debt | 161,296 | 252,050 |
Current liabilities | 108,791 | 169,675 |
Total liabilities | 306,114 | 451,853 |
Equity attributable to PAO NOVATEK shareholders
| 648,350 | 426,079 |
Non-controlling interest | 9,370 | 2,092 |
Total equity | 657,720 | 428,171 |
Total liabilities and equity | 963,834 | 880,024 |
The full set of audited consolidated IFRS financial statements for the year ended31 December 2016 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).
***
For further information, please visit www.novatek.ru or contact:
Press Service+7 (495) 721 2207[email protected] | Investor Relations+7 (495) 730 6013[email protected] |
***
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