30th Jul 2014 13:30
NOVATEK ANNOUNCES CONSOLIDATED IFRS RESULTS
FOR SECOND QUARTER AND FIRST HALF 2014
Moscow, 30 July 2014. OAO NOVATEK today released its consolidated interim condensed financial information as of and for the three and six months ended 30 June 2014 prepared in accordance with International Financial Reporting Standards (“IFRS”).
IFRS Financial and Operational Highlights
(in millions of Russian roubles)
| 2Q 2014 | 2Q 2013 | 1H 2014 | 1H 2013 | ||||||
| 87,881 | 57,918 | Oil and gas sales | 176,414 | 138,366 | |||||
| 489 | 112 | Other revenues | 632 | 229 | |||||
| 88,370 | 58,030 | Total revenues | 177,046 | 138,595 | |||||
| (55,670) | (39,613) | Operating expenses | (109,545) | (90,669) | |||||
| - | - | Net gain on disposal of interestsin joint ventures | 2,623 | - | |||||
| 1,791 | (34) | Other operating income (loss) | 1,750 | 657 | |||||
| 34,491 | 18,383 | Profit from operations | 71,874 | 48,583 | |||||
| 36,895 | 21,613 | Normalized EBITDA of subsidiaries* | 75,862 | 54,470 | |||||
| 40,323 | 23,426 | Normalized EBITDA including share in EBITDA of joint ventures* | 83,302 | 58,286 | |||||
| 808 | (3,455) | Finance income (expense) | (3,512) | (5,379) | |||||
| 3,768 | (472) | Share of profit (loss) of joint ventures,net of income tax | 2,046 | (309) | |||||
| 39,067 | 14,456 | Profit before income tax | 70,408 | 42,895 | |||||
| 31,874 | 11,583 | Profit | 57,023 | 34,396 | |||||
| 31,950 | 11,602 | Normalized Profit attributableto OAO NOVATEK shareholders* | 55,006 | 34,428 | |||||
| 10.58 | 3.83 | Normalized basic and diluted earnings per share* (in Russian roubles) | 18.19 | 11.36 |
* Excluding the effect from disposal of interests in joint ventures in 1Q 2014.
In the second quarter and first half 2014, our total revenues increased by 52.3% and 27.7%, respectively, compared to the corresponding periods of 2013. The growth was mainly due to an increase in average prices for natural gas and liquid hydrocarbons, as well as higher liquid hydrocarbons sales volumes. Average liquid hydrocarbon sales price was positively impacted by the launch of the Ust-Luga Gas Condensate Fractionation Complex in June 2013. Growth in the average natural gas sales price was driven among other factors by higher share of end customers in our overall natural gas sales volumes mix.
The Company’s Normalized EBITDA, inclusive of subsidiaries, amounted to RR 36.9 billion in the second quarter 2014, representing a 70.7% increase as compared to the second quarter 2013. The Normalized EBITDA, including our respective share in the EBITDA of joint ventures, increased by 72.1% as compared to the second quarter 2013 to RR 40.3 billion. In the first half 2014, our Normalized EBITDA, inclusive of subsidiaries, amounted to RR 75.9 billion, and our EBITDA, including our respective share in the EBITDA of joint ventures, was RR 83.3 billion, which represents an increase of 39.3% and 42.9%, respectively, as compared to the first half 2013. The growth in our Normalized EBITDA was positively impacted by a higher share of liquid hydrocarbons in our overall sales volumes mix as well as higher liquids sales margins due to the launch of the Ust-Luga Complex.
In the second quarter 2014, Normalized Profit attributable to NOVATEK shareholders increased by 175.4% to RR 32.0 billion or RR 10.58 per share. In the first half 2014, Normalized Profit attributable to NOVATEK shareholders (adjusted for the effect on disposal of the share in Artic Russia B.V.) amounted to RR 55.0 billion (RR 18.19 per share), representing an increase of 59.8% as compared to the first half 2013. Our profit dynamics over the respective reporting periods were positively impacted by non-cash foreign exchange effects (including at the joint ventures level).
Production and Purchased Volumes
| 2Q 2014 | 2Q 2013 | 1H 2014 | 1H 2013 | ||||||
| 13,131 | 12,784 | Natural gas production by subsidiaries,million cubic meters (mmcm) | 26,529 | 26,449 | |||||
| 1,375 | 1,870 | Natural gas purchases from joint ventures, mmcm | 1,659 | 3,823 | |||||
| 1,848 | 1,365 | Other purchases of natural gas, mmcm | 3,525 | 3,479 | |||||
| 16,354 | 16,019 | Total natural gas production and purchases, mmcm | 31,713 | 33,751 | |||||
| 1,085 | 1,103 | Liquids production by subsidiaries, thousand tons (mt) | 2,179 | 2,199 | |||||
| 564 | 265 | Liquids purchases from joint ventures, mt | 1,060 | 504 | |||||
| 6 | 2 | Other purchases of liquids, mt | 13 | 4 | |||||
| 1,655 | 1,370 | Total liquids production and purchases, mt | 3,252 | 2,707 |
Sales Volumes
| 2Q 2014 | 2Q 2013 | 1H 2014 | 1H 2013 | ||||||
| 15,528 | 14,628 | Natural gas, mmcm | 33,300 | 33,367 | |||||
| 14,604 | 13,008 | including sales to end-users, mmcm | 31,281 | 29,640 | |||||
| 1,087 | - | Stable gas condensate products, mt | 2,052 | - | |||||
| 331 | 261 | Liquefied petroleum gas, mt | 682 | 526 | |||||
| 223 | 164 | Crude oil, mt | 418 | 301 | |||||
| 43 | 632 | Stable gas condensate, mt | 75 | 1 842 | |||||
| 3 | 3 | Other oil products, mt | 5 | 5 |
In the second quarter 2014, our natural gas sales volumes increased to 15.5 billion cubic meters (bcm), or by 6.2%, as compared with the corresponding period in 2013, mainly due to the increase in production volumes of our subsidiaries and less gas injected into the underground storages. Natural gas sales volumes in the first half 2014 remained practically unchanged as compared to the first half 2013 and amounted to 33.3 bcm. The positive impact of higher production volumes and change in gas inventory in the underground storages was fully offset by the termination of natural gas purchases from Sibneftegas due to the divestment of our share in this joint venture in December 2013. The share of end-customers in our overall gas sales volumes mix increased from 89% in the first half 2013 to 94% in the same period of 2014. As at 30 June 2014, the total amount of natural gas recorded as inventory aggregated 1.6 bcm as compared to 1.4 bcm as at 30 June 2013.
Liquid hydrocarbon sales volumes in the second quarter and first half 2014 increased by 59.2% and 20.9%, respectively, as compared to the same periods of 2013 due to a significant increase in our liquid inventory balances in the second quarter 2013 prior to the launch of the Ust-Luga Complex. Sales volumes were positively impacted by higher volumes of gas condensate purchased from our joint ventures due to production growth at Nortgas and the SeverEnergia fields. As at 30 June 2014, 357 thousand tons of stable gas condensate and oil products were in transit or storage and recognized as inventory compared to 447 thousand tons as at 30 June 2013.
Selected Balance Sheet Items
(in millions of Russian roubles)
|
| 30 June 2014 | 31 December 2013 | |||
| ASSETS | |||||
| Non-current assets | 526,731 | 515,569 | |||
| Property, plant and equipment | 268,405 | 243,688 | |||
| Investments in joint ventures | 189,304 | 210,066 | |||
| Total current assets | 107,483 | 82,426 | |||
| Total assets | 634,214 | 597,995 | |||
| LIABILITIES AND EQUITY | |||||
| Non-current liabilities | 182,267 | 165,065 | |||
| Long-term debt | 155,347 | 141,595 | |||
| Current liabilities | 34,137 | 59,873 | |||
| Total liabilities | 216,404 | 224,938 | |||
| Equity attributable to OAO NOVATEK shareholders | 415,142 | 370,198 | |||
| Non-controlling interest | 2,668 | 2,859 | |||
| Total equity | 417,810 | 373,057 | |||
| Total liabilities and equity | 634,214 | 597,995 |
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 (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] |
***
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 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. The Company’s shares are listed in Russia on Moscow Exchange (MOEX) and the London Stock Exchange (LSE) under the ticker symbol «NVTK».
Copyright Business Wire 2014
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