11th Nov 2011 12:51
NOVATEK ANNOUNCES THIRD QUARTER AND NINE MONTHS 2011 IFRS RESULTS
Moscow, 11 November 2011. OAO NOVATEK today released its consolidated interim condensed financial information for the three and nine months ending 30 September 2011 prepared in accordance with International Financial Reporting Standards ("IFRS").
IFRS Financial and Operational Highlights(in millions of Russian roubles)
| 3Q 2011 | 3Q 2010 | 9M 2011 | 9M 2010 | |||||
| Revenues | ||||||||
| 39,835 | 28,786 | Oil and gas sales | 125,129 | 81,074 | ||||
| - | 619 | Sales of polymer and insulation tape | - | 1,699 | ||||
| 145 | 36 | Other revenues | 288 | 116 | ||||
| 39,980 | 29,441 | Total revenues | 125,417 | 82,889 | ||||
| (22,881) | (17,587) | Total operating expenses | (68,741) | (49,251) | ||||
| - | (254) | Net gain (loss) on disposal of interest in subsidiaries | - | 1,329 | ||||
| 31 | 408 | Other operating income | 30 | 432 | ||||
| 17,130 | 12,008 | Profit from operations | 56,706 | 35,399 | ||||
| (5,890) | 482 | Finance income (expense) | (2,079) | 16 | ||||
| 10,489 | 12,483 | Profit before income tax | 52,359 | 35,398 | ||||
| 8,227 | 10,061 | Profit | 41,327 | 28,203 | ||||
| 8,406 | 10,105 | Profit attributable toOAO NOVATEK shareholders | 41,680 | 28,426 | ||||
| 2.77 | 3.33 | Basic and diluted earnings per share (in Russian roubles) | 13.74 | 9.37 | ||||
In the third quarter 2011, our total revenues increased by 35.8% to RR 39,980 million compared to the corresponding period in 2010, primarily due to an increase in natural gas sales volumes and higher natural gas and liquids prices. The increase in oil and gas sales in the third quarter 2011 resulted in a 42.7% increase in profit from operations to RR 17,130 million compared to RR 12,008 in the 2010 period. The depreciation of the Russian rouble against the US dollar during the third quarter 2011 resulted in a foreign exchange loss of RR 6,315 million and a 16.8% decrease in profit attributable to OAO NOVATEK shareholders to RR 8,406 million, or RR 2.77 per share, as compared to the corresponding period in 2010. Adjusted profit attributable to OAO NOVATEK shareholders1 in the third quarter 2011 amounted to RR 14,721 million, or RR 4.85 per share, compared to RR 9,534 million, or RR 3.14 per share in the 2010 period.
In the nine months ended 30 September 2011, our total revenues increased by 51.3% to RR 125,417 million, as compared to the corresponding period in 2010, primarily due to an increase in hydrocarbon sales volumes and prices. The increase in oil and gas revenues resulted in a 46.6% increase in profit attributable to OAO NOVATEK shareholders to RR 41,680 million, or RR 13.74 per share over the same period.
Selected Operating Highlights
| 3Q 2011 | 3Q 2010 | Production and Purchased Volumes | 9M 2011 | 9M 2010 | |||||
| 11,950 | 8,374 | Natural gas production, million cubic meters (mmcm) | 34,585 | 26,519 | |||||
| 1,329 | - | Net share in equity production of natural gas, mmcm | 4,013 | - | |||||
| 13,279 | 8,374 | Total natural gas production | 38,598 | 26,519 | |||||
| 993 | 884 | Liquids production, thousand tons (mt) | 3,053 | 2,625 | |||||
| 1 | 5 | Liquids purchases, mt | 4 | 11 | |||||
| 994 | 889 | Total liquids production and purchases | 3,057 | 2,636 |
| 3Q 2011 | 3Q 2010 | Sales Volumes | 9M 2011 | 9M 2010 | ||||
| 12,266 | 8,123 | Natural gas, mmcm | 38,088 | 26,138 | ||||
| 658 | 723 | Stable gas condensate, mt | 2,137 | 1,674 | ||||
| 208 | 206 | Liquefied petroleum gas, mt | 654 | 662 | ||||
| 66 | 42 | Crude oil, mt | 168 | 134 | ||||
| 1 | 2 | Oil products. mt | 4 | 8 | ||||
In the third quarter and nine months of 2011, our natural gas sales volumes increased by 51.0% and 45.7%, respectively, primarily due to an increase in production volumes from subsidiary and associated companies. Over the same periods, our liquids sales volumes decreased by 4.1% and increased by 19.6%, respectively. The decrease in the liquids sales volumes in the third quarter 2011 was primarily due to an increase in the inventory balance of stable gas condensate in storage or transit, whereas our nine month 2011 sales volumes were higher due to an increase in production.
At 30 September 2011, we had 325 thousand tons of stable gas condensate in transit and storage as compared to 206 thousand tons as of 30 September 2010. Our natural gas inventory balance as of 30 September 2011 increased to 1,225 million cubic meters compared to 1,058 million cubic meters at the end of the third quarter of 2010.
1 Adjusted profit and earnings per share is profit attributable to OAO NOVATEK shareholders excluding effects of foreign exchange losses.
Selected Balance Sheet Items(in millions of Russian roubles)
|
| 30 September 2011 | 31 December 2010 | |||
| ASSETS | |||||
| Non-current assets | 271,940 | 255,608 | |||
| Property, plant and equipment, net | 205,802 | 185,573 | |||
| Total current assets | 50,172 | 29,565 | |||
| Total assets | 322,112 | 285,173 | |||
| LIABILITIES AND EQUITY | |||||
| Non-current liabilities | 94,249 | 59,946 | |||
| Long-term debt | 78,732 | 47,074 | |||
| Current liabilities | 57,194 | 57,441 | |||
| Total liabilities | 151,443 | 117,387 | |||
| Equity attributable to OAO NOVATEK shareholders | 169,989 | 147,119 | |||
| Non-controlling interest | 680 | 20,667 | |||
| Total equity | 170,669 | 167,786 | |||
| Total liabilities and equity | 322,112 | 285,173 | |||
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).
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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.
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 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 on the Russian Trading System (RTS), MICEX 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 2011
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