27th Jul 2016 11:00
FOR IMMEDIATE RELEASE
NOVATEK Announces Consolidated IFRS ResultsFor Second Quarter and First Half 2016
Moscow, 27 July 2016. OAO NOVATEK today released its consolidated interim condensed financial statements as of and for the three and six months ended 30 June 2016 prepared in accordance with International Financial Reporting Standards ("IFRS").
IFRS Financial Highlights(in millions of Russian roubles)
2Q 2016 | 2Q 2015 | 1H 2016 | 1H 2015 | |
126,463 | 111,574 | Oil and gas sales | 264,674 | 224,798 |
925 | 670 | Other revenues | 2,065 | 1,188 |
127,388 | 112,244 | Total revenues | 266,739 | 225,986 |
(90,019) | (79,541) | Operating expenses | (187,178) | (153,437) |
- | - | Net gain on disposal of interests in joint ventures | 73,072 | - |
(1,731) | (158) | Other operating income (loss) | (760) | (357) |
35,638 | 32,545 | Profit from operations | 151,873 | 72,192 |
46,276 | 37,317 | Normalized EBITDA of subsidiaries* | 97,099 | 82,021 |
59,507 | 49,511 | Normalized EBITDA including share in EBITDA of joint ventures* | 121,643 | 104,343 |
74 | 2,130 | Finance income (expense) | 990 | (5,116) |
19,623 | 13,004 | Share of profit of joint ventures,net of income tax | 43,004 | 17,278 |
55,335 | 47,679 | Profit before income tax | 195,867 | 84,354 |
45,934 | 41,920 | Profit attributableto OAO NOVATEK shareholders | 161,851 | 72,995 |
45,934 | 41,920 | Normalized profit attributableto OAO NOVATEK shareholders* | 104,174 | 72,995 |
15.22 | 13.88 | Normalized basic and diluted earnings per share* (in Russian roubles) | 34.51 | 24.17 |
* Excluding the effect from disposal of interests in joint ventures.
In the second quarter and first half 2016, our total revenues increased by 13.5% and 18.0%, respectively, compared to the corresponding periods of 2015. Our Normalized EBITDA, inclusive of joint ventures, amounted to RR 59.5 billion in the second quarter 2016 and RR 121.6 billion in the first half 2016, representing an increase of 20.2% and 16.6%, respectively, as compared to the corresponding periods of 2015. The growth in our revenues and EBITDA was largely driven by substantial increase in liquids sales volumes and higher natural gas sales prices. The decrease in net average sales prices in rouble terms for certain types of liquid hydrocarbons due to changes in the respective market benchmarks had a negative impact on the dynamics of our revenues and EBITDA.
In the second quarter 2016, profit attributable to NOVATEK shareholders increased to RR 45.9 billion (RR 15.22 per share), or by 9.6% as compared to the second quarter 2015. As a result, in the first half 2016, our profit amounted to RR 161.9 billion (RR 53.61 per share), representing an increase of 121.7% as compared to the first half 2015. Profit dynamics was positively impacted by the closing in the first quarter 2016 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 in the first half 2016 totalled RR 104.2 billion (RR 34.51 per share), representing a 42.7% increase as compared to the first half 2015. 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.
Marketable Hydrocarbon Production and Purchased Volumes
2Q 2016 | 2Q 2015 | 1H 2016 | 1H 2015 | |
16,521 | 16,890 | Natural gas production, million cubic meters (mmcm) | 33,757 | 33,041 |
11,602 | 12,278 | including production by subsidiaries, mmcm | 23,778 | 24,739 |
1,840 | 1,615 | Natural gas purchases from joint ventures, mmcm | 4,589 | 3,238 |
1,939 | 1,596 | Other purchases of natural gas, mmcm | 3,950 | 3,145 |
15,381 | 15,489 | Total natural gas production by subsidiaries and purchases, mmcm | 32,317 | 31,122 |
3,119 | 2,198 | Liquids production,thousand tons (mt) | 6,327 | 4,189 |
1,809 | 996 | including production by subsidiaries, mt | 3,664 | 2,052 |
2,450 | 2,184 | Liquids purchases from joint ventures, mt | 4,981 | 3,887 |
13 | 17 | Other purchases of liquids, mt | 44 | 21 |
4,272 | 3,197 | Total liquids production by subsidiaries and purchases, mt | 8,689 | 5,960 |
Hydrocarbon Sales Volumes
2Q 2016 | 2Q 2015 | 1H 2016 | 1H 2015 | |
14,062 | 14,498 | Natural gas, mmcm | 31,837 | 30,475 |
13,045 | 13,502 | including sales to end-users | 29,139 | 28,579 |
4,139 | 2,911 | Liquids, mt | 8,781 | 5,745 |
including: | ||||
1,684 | 1,588 | Stable gas condensate products | 3,565 | 3,425 |
1,157 | 238 | Crude oil | 2,345 | 509 |
639 | 545 | Stable gas condensate | 1,507 | 821 |
656 | 537 | Liquefied petroleum gas | 1,359 | 985 |
3 | 3 | Other petroleum products | 5 | 5 |
Our natural gas sales volumes totalled 14.1 billion cubic meters (bcm) in the second quarter 2016 and 31.8 bcm in the first half 2016. Compared to the first half 2015 the sales volumes increased by 4.5% which was mainly due to the development of gas trading at theSaint-Petersburg commodity exchange and higher volumes sold to traders. As at the end of the first half 2016, the total amount of natural gas recorded as inventory totalled 1.7 bcm compared to 1.6 bcm as at the end of the first half 2015.
In the second quarter 2016, liquid hydrocarbon sales volumes amounted to 4,139 mt, representing a 42.2% increase in volumes sold as compared to the second quarter 2015. As a result, in the first half 2016, liquid hydrocarbon sales volumes grew to 8,781 mt, representing a 52.8% increase as compared to the first half 2015. This significant growth was largely due to the launch of the Yarudeyskoye oil field in December 2015 and the Termokarstovoye and Yaro-Yakhinskoye gas and gas condensate fields in the first half 2015. The dynamics of our liquids sales volumes was also positively impacted by decrease in liquids inventories by 240 mt in the first half 2016 compared to the increase by 72 mt in the first half 2015. As at 30 June 2016, 670 mt of liquid hydrocarbons were in transit or storage and recognized as inventory.
Selected Balance Sheet Items
(in millions of Russian roubles)
| 30 June 2016 | 31 December 2015 |
ASSETS | ||
Non-current assets | 782,960 | 751,552 |
Property, plant and equipment | 332,379 | 331,712 |
Investments in joint ventures | 200,811 | 154,725 |
Long-term loans and receivables | 222,565 | 230,799 |
Total current assets | 125,163 | 120,485 |
Assets held for sale | - | 7,987 |
Total assets | 908,123 | 880,024 |
LIABILITIES AND EQUITY | ||
Non-current liabilities | 227,093 | 282,178 |
Long-term debt | 194,150 | 252,050 |
Current liabilities | 101,958 | 169,675 |
Total liabilities | 329,051 | 451,853 |
Equity attributable to OAO NOVATEK shareholders
| 572,930 | 426,079 |
Non-controlling interest | 6,142 | 2,092 |
Total equity | 579,072 | 428,171 |
Total liabilities and equity | 908,123 | 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 2207[email protected] | Investor Relations+7 (495) 730 6013[email protected] |
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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