29th Jul 2015 10:30
NOVATEK ANNOUNCES CONSOLIDATED IFRS RESULTS
FOR SECOND QUARTER AND FIRST HALF 2015
Moscow, 29 July 2015. OAO NOVATEK today released its consolidated interim condensed financial statements as of and for the three and six months ended 30 June 2015 prepared in accordance with International Financial Reporting Standards (“IFRS”).
IFRS Financial Highlights
(in millions of Russian roubles)
| 2Q 2015 | 2Q 2014 | 1H 2015 | 1H 2014 | ||||||||||||||||
| 111,574 | 87,881 | Oil and gas sales | 224,798 | 176,414 | |||||||||||||||
| 670 | 489 | Other revenues | 1,188 | 632 | |||||||||||||||
| 112,244 | 88,370 | Total revenues | 225,986 | 177,046 | |||||||||||||||
| (79,541) | (55,670) | Operating expenses | (153,437) | (109,545) | |||||||||||||||
| - | - | Net gain on disposal of interests in jointventures | - | 2,623 | |||||||||||||||
| (158) | 1,791 | Other operating income (loss) | (357) | 1,750 | |||||||||||||||
| 32,545 | 34,491 | Profit from operations | 72,192 | 71,874 | |||||||||||||||
| 37,968 | 36,895 | Normalized EBITDA of subsidiaries* | 83,002 | 75,862 | |||||||||||||||
| 50,162 | 40,323 | Normalized EBITDA including share in EBITDA of joint ventures* | 105,324 | 83,302 | |||||||||||||||
| 2,130 | 808 | Finance income (expense) | (5,116) | (3,512) | |||||||||||||||
| 13,004 | 3,768 | Share of profit of joint ventures,net of income tax | 17,278 | 2,046 | |||||||||||||||
| 47,679 | 39,067 | Profit before income tax | 84,354 | 70,408 | |||||||||||||||
| 41,920 | 31,950 | Normalized profit attributable to OAO NOVATEK shareholders* | 72,995 | 55,006 | |||||||||||||||
| 13.88 | 10.58 | Basic and diluted earnings per share(in Russian roubles) | 24.17 | 18.88 | |||||||||||||||
| 13.88 | 10.58 | Normalized basic and diluted earnings pershare* (in Russian roubles) | 24.17 | 18.19 |
* Excluding the effect from disposal of interests in joint ventures in 1Q 2014.
In the second quarter and first half 2015, our total revenues increased by 27.0% and 27.6%, respectively, compared to the corresponding periods of 2014. The growth was mainly due to an increase in liquids sales volumes and net prices in Russian rouble terms. Average net prices of liquid hydrocarbons were positively impacted by the substantial increase in sales volumes of high value-added petroleum products from the Ust-Luga Complex, the decrease in export duty rates and rouble devaluation against the US dollar, which more than offset the decline in international hydrocarbon prices.
The Company’s Normalized EBITDA, inclusive of joint ventures, amounted to RR 50.2 billion in the second quarter 2015 and RR 105.3 billion in the first half 2015, representing an increase of 24.4% and 26.4%, respectively, as compared to the corresponding periods of 2014. Our Normalized EBITDA was positively impacted by the higher share of liquid product sold in our overall sales volumes mix.
In the second quarter 2015, the profit attributable to NOVATEK shareholders increased by 31.2% to RR 41.9 billion or RR 13.88 per share. In the first half 2015, the profit attributable to NOVATEK shareholders amounted to RR 73.0 billion (RR 24.17 per share), representing an increase of 32.7% as compared to the profit in the first half 2014 adjusted for the effect on disposal of interests in joint ventures.
In the first half 2015, our free cash flow generation increased to RR 40.4 billion, or by 2.3 times as compared to the corresponding period of 2014.
Hydrocarbon Production and Purchased Volumes
| 2Q 2015 | 2Q 2014 | 1H 2015 | 1H 2014 | ||||||||||||||||
| 16,890 | 15,239 | Natural gas production including proportionate share in the production of joint ventures, million cubic meters (mmcm) | 33,041 | 30,662 | |||||||||||||||
| 12,278 | 13,131 | including production by subsidiaries,mmcm | 24,739 | 26,529 | |||||||||||||||
| 1,615 | 1,375 | Natural gas purchases from jointventures, mmcm | 3,238 | 1,659 | |||||||||||||||
| 1,596 | 1,848 | Other purchases of natural gas, mmcm | 3,145 | 3,525 | |||||||||||||||
| 15,489 | 16,354 | Total natural gas production by subsidiaries and purchases, mmcm | 31,122 | 31,713 | |||||||||||||||
| 2,198 | 1,380 | Liquids production including proportionate share in the production of joint ventures, thousand tons (mt) | 4,189 | 2,742 | |||||||||||||||
| 996 | 1,085 | including production by subsidiaries, mt | 2,052 | 2,179 | |||||||||||||||
| 2,184 | 564 | Liquids purchases from joint ventures,mt | 3,887 | 1,060 | |||||||||||||||
| 17 | 6 | Other purchases of liquids, mt | 21 | 13 | |||||||||||||||
| 3,197 | 1,655 | Total liquids production by subsidiaries and purchases, mt | 5,960 | 3,252 |
Hydrocarbon Sales Volumes
| 2Q 2015 | 2Q 2014 | 1H 2015 | 1H 2014 | ||||||||||||||||
| 14,498 | 15,528 | Natural gas, mmcm | 30,475 | 33,300 | |||||||||||||||
| 13,502 | 14,604 | including sales to end-users | 28,579 | 31,281 | |||||||||||||||
| 2,911 | 1,687 | Liquids, mt | 5,745 | 3,232 | |||||||||||||||
| including: | |||||||||||||||||||
| 1,588 | 1,087 | Stable gas condensate products | 3,425 | 2,052 | |||||||||||||||
| 545 | 43 | Stable gas condensate | 821 | 75 | |||||||||||||||
| 537 | 331 | Liquefied petroleum gas | 985 | 682 | |||||||||||||||
| 238 | 223 | Crude oil | 509 | 418 | |||||||||||||||
| 3 | 3 | Other petroleum products | 5 | 5 |
Our natural gas sales volumes totalled 14.5 billion cubic meters (bcm) in the second quarter 2015 and 30.5 bcm in the first half 2015, representing a decrease of 8.5% as compared to the first half 2014. The decrease was mainly due to substantial withdrawals of natural gas from the underground storages in the first half 2014 due to colder weather as compared to the first half 2015.
In the first half 2015, the total amount of natural gas recorded as inventory increased by 547 mmcm to 1,596 mmcm as compared to a decrease of 1,675 mmcm in the first half 2014.
In the second quarter 2015, liquid hydrocarbon sales volumes amounted to 2,911 mt, representing a 72.6% increase in volumes sold as compared to the second quarter 2014. In the first half 2015, liquid hydrocarbon sales volumes amounted to 5,745 mt, representing a 77.8% increase as compared to the first half 2014.
Higher volumes of gas condensate purchased from our joint ventures due to production growth at the SeverEnergia fields and launch of the Termokarstovoye field, as well as increase of crude oil production by subsidiaries positively impacted our sales during the period. As at 30 June 2015, 811 mt of liquid hydrocarbons were in transit or storage and recognized as inventory compared to 739 mt as at 31 December 2014.
Selected Balance Sheet Items
(in millions of Russian roubles)
|
| 30 June 2015 | 31 December 2014 | |||||||||
| ASSETS | |||||||||||
| Non-current assets | 641,485 | 572,548 | |||||||||
| Property, plant and equipment | 312,306 | 291,726 | |||||||||
| Investments in joint ventures | 191,620 | 166,231 | |||||||||
| Total current assets | 129,022 | 126,591 | |||||||||
| Total assets | 770,507 | 699,139 | |||||||||
| LIABILITIES AND EQUITY | |||||||||||
| Non-current liabilities | 183,565 | 230,807 | |||||||||
| Long-term debt | 156,290 | 204,699 | |||||||||
| Current liabilities | 138,780 | 81,208 | |||||||||
| Total liabilities | 322,345 | 312,015 | |||||||||
| Equity attributable toOAO NOVATEK shareholders | 446,774 | 384,755 | |||||||||
| Non-controlling interest | 1,388 | 2,369 | |||||||||
| Total equity | 448,162 | 387,124 | |||||||||
| Total liabilities and equity | 770,507 | 699,139 |
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).
***
For further information, please visit www.novatek.ru or contact:
| Press Service+7 (495) 721 220 7[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 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».
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