7th Mar 2012 12:37
NOVATEK ANNOUNCES CONSOLIDATED IFRS RESULTS
FOR THE YEAR ENDED 31 DECEMBER 2011
Moscow, 07 March 2012. OAO NOVATEK today released its audited consolidated financial statements for the years ended 31 December 2011 and 2010 prepared in accordance with International Financial Reporting Standards ("IFRS").
IFRS Financial and Operational Highlights
(in millions of Russian roubles)
| FY 2011 | FY 2010 | ||||
| Revenues | |||||
| Oil and gas sales | 175,602 | 115,162 | |||
| Sales of polymer and insulation tape | - | 1,699 | |||
| Other revenues | 462 | 163 | |||
| Total revenues | 176,064 | 117,024 | |||
| Total operating expenses | (97,665) | (68,518) | |||
| Net gain on disposal of interest in subsidiaries | 62,948 | 1,329 | |||
| Other operating income (loss) | 261 | 396 | |||
| Profit from operations | 141,608 | 50,231 | |||
| Finance income (expense) | (2,703) | 1,197 | |||
| Profit before income tax | 135,025 | 51,082 | |||
| Profit (loss) | 119,291 | 40,278 | |||
| Profit (loss) attributable to OAO NOVATEK shareholders | 119,655 | 40,533 | |||
| Basic and diluted earnings per share (in Russian roubles) | 39.45 | 13.37 | |||
| Profit attributable to OAO NOVATEK shareholders, excluding net gain on disposal | 56,707 | 39,204 | |||
| Basic and diluted earnings per share, excluding net gain on disposal (in Russian roubles) | 18.69 | 12.93 |
Total revenues grew by 50.5% year-on-year to RR 176,064 million for the twelve months ended 31 December 2011 from RR 117,024 million in the corresponding period of 2010, reflecting the overall growth in our hydrocarbon production and sales volumes as well as higher prices for both natural gas and liquid hydrocarbons.
Profit attributable to NOVATEK shareholders increased by 195.2% to
RR 119,655 million, or RR 39.45 per share, as compared to RR 40,533 million, or
RR 13.37 per share, for the corresponding period in 2010, as a result of the higher revenues, our ability to decrease costs as a percentage of total revenues and the net gain realized on the disposal of a 20% equity interest in Yamal LNG. Profit attributable to NOVATEK shareholders in 2011, excluding the net gain on disposal, increased by 44.6% to RR 56,707 million, as compared to RR 39,204 million in 2010.
Selected Operating Highlights
| Production and Purchased Volumes | FY 2011 | FY 2010 | |||
| Natural gas production, million cubic meters (mmcm) | 47,521 | 37,261 | |||
| Equity share in natural gas production from joint ventures, mmcm | 5,384 | - | |||
| Natural gas purchases, mmcm | 841 | - | |||
| Total natural gas production and purchases, mmcm | 53,746 | 37,261 | |||
| Liquids production, thousand tons (mt) | 4,111 | 3,617 | |||
| Liquids purchases, mt | 6 | 12 | |||
| Total liquids production and purchases, mt | 4,117 | 3,629 |
| Sales Volumes | FY 2011 | FY 2010 | |||
| Natural gas, mmcm | 53,667 | 37,117 | |||
| Stable gas condensate, mt | 2,984 | 2,330 | |||
| Liquefied petroleum gas, mt | 880 | 876 | |||
| Crude oil, mt | 242 | 185 | |||
| Oil products, mt | 5 | 10 |
In 2011, our total net natural gas production, including our equity interest in Sibneftegas' production, increased by 15,644 million cubic meters, or 42.0% compared to 2010, primarily due to an increase in production at our Yurkharovskoye and East-Tarkosalinskoye fields, as well as the consolidation of our share in Sibneftegas' production. Our total natural gas sales volumes increased by 16,550 million cubic meters, or 44.6%, in 2011 primarily due to the increase in net production.
Our liquids production increased by 494 thousand tons, or 13.7%, to 4,111 thousand tons compared to 3,617 thousand tons in 2010, due to the expansion of unstable gas condensate production capacity at our Yurkharovskoye field from the field's on-going development program. During the year, our liquids sales volumes increased by 710 thousand tons, or 20.9%, as a result of the increase in production and a decrease in inventory balances. Also, in 2010 we launched our wholly owned gas condensate pipeline which required a one-time fill of approximately 36 thousand tons of unstable gas condensate.
At 31 December 2011, we had 228 thousand tons of stable gas condensate in transit or storage and recognized as inventory until such time as it is delivered to customers as compared to 264 thousand tons as of 31 December 2010. In 2011, our natural gas inventory balance as of 31 December 2011 decreased to 760 million cubic meters compared to 790 million cubic meters at the end of the 2010 period.
Selected Balance Sheet Items
(in millions of Russian roubles)
|
| 31 December 2011 | 31 December 2010 | |||
| ASSETS | |||||
| Non-current assets | 325,116 | 255,608 | |||
| Property, plant and equipment | 166,784 | 185,573 | |||
| Investments in joint ventures | 123,029 | 27,026 | |||
| Total current assets | 58,316 | 29,565 | |||
| Total assets | 383,432 | 285,173 | |||
| LIABILITIES AND EQUITY | |||||
| Non-current liabilities | 91,636 | 59,946 | |||
| Long-term debt | 75,180 | 47,074 | |||
| Current liabilities | 50,114 | 57,441 | |||
| Total liabilities | 141,750 | 117,387 | |||
| Equity attributable to OAO NOVATEK shareholders | 241,013 | 147,119 | |||
| Non-controlling interest | 669 | 20,667 | |||
| Total equity | 241,682 | 167,786 | |||
| Total liabilities and equity | 383,432 | 285,173 |
The full set of audited consolidated IFRS financial statements for the years ended
31 December 2011 and 2010 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 web site (www.novatek.ru).
Certain statements in this press release are not historical facts and are "forward looking" within the meaning of Section 27A of the Securities Act and Section 21E of the US Securities Exchange Act of 1934 (hereinafter, the Exchange Act). Forward looking statements include statements concerning our plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans or intentions relating to acquisitions, our competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, our business strategy and the trends we anticipate in the industries and the political and legal environment in which we operate and other information that is not historical information. By their very nature, forward looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward looking statements will not be achieved.
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For further information, please visit www.novatek.ru or contact:
| Press Service+7 (495) 721 2207 | Investor Relations+7 (495) 730 [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 83% of Russia's natural gas production and 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 MICEX-RTS Stock Exchange and the London Stock Exchange (LSE) under the ticker symbol "NVTK" and on the NASDAQ PORTAL System as Rule 144A GDR under the ticker symbol "NVATY".
Copyright Business Wire 2012
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