9th Nov 2012 13:45
NOVATEK REPORTS STRONG EARNINGS FOR THIRD QUARTER 2012
Moscow, 09 November 2012. OAO NOVATEK today released its consolidated interim condensed financial information for the third quarter and nine months ending 30 September 2012 prepared in accordance with International Financial Reporting Standards ("IFRS").
IFRS Financial and Operational Highlights
(in millions of Russian roubles)
| 3Q 2012 | 3Q 2011 | 9M 2012 | 9M 2011 | |||||
| Revenues | ||||||||
| 52,562 | 39,888 | Oil and gas sales | 151,698 | 125,265 | ||||
| 169 | 145 | Other revenues | 551 | 288 | ||||
| 52,731 | 40,033 | Total revenues | 152,249 | 125,553 | ||||
| (29,845) | (22,921) | Total operating expenses | (88,476) | (68,838) | ||||
| 339 | 18 | Other operating income (loss) | 344 | (9) | ||||
| 23,225 | 17,130 | Profit from operations | 64,117 | 56,706 | ||||
| 2,345 | (5,890) | Finance income (expense) | 2,372 | (2,079) | ||||
| 25,269 | 10,405 | Profit before income tax | 64,676 | 52,106 | ||||
| 19,996 | 8,143 | Profit | 50,892 | 41,074 | ||||
| 20,003 | 8,322 | Profit attributable toOAO NOVATEK shareholders | 50,911 | 41,427 | ||||
| 6.59 | 2.74 | Basic and diluted earnings per share (in Russian roubles) | 16.78 | 13.66 |
In the third quarter and nine months 2012, total revenues increased by 31.7% and 21.3%, respectively, as compared to corresponding periods of 2011. The growth was due to an increase in hydrocarbon sales volumes and higher natural gas and liquids prices.
In the third quarter 2012, profit from operations increased to RR 23,225 million, or by 35.6% as compared to the corresponding period of 2011, and for the nine months ending 30 September 2012, profit from operations amounted to RR 64,117 million, representing an increase of 13.1% as compared with the corresponding nine months 2011.
Profit attributable to OAO NOVATEK shareholders grew by 140.4% in the third quarter 2012 and by 22.9% in the nine months 2012, equaling RR 6.59 per share and RR 16.78 per share, respectively, which was partially attributable to non-cash foreign exchange gain in the third quarter and nine months 2012 as compared with non-cash losses in the same periods of 2011.
Selected Operating Highlights
| 3Q 2012 | 3Q 2011 | Production and Purchase Volumes | 9M 2012 | 9M 2011 | |||||
| 11,609 | 11,950 | Natural gas production, million cubic meters (mmcm) | 37,112 | 34,585 | |||||
| 1,339 | 1,329 | Equity share in natural gas production from joint ventures, mmcm | 4,016 | 4,013 | |||||
| 840 | - | Gas purchases, mmcm | 2,540 | - | |||||
| 13,788 | 13,279 | Total natural gas production, mmcm | 43,668 | 38,598 | |||||
| 972 | 993 | Liquids production, thousand tons (mt) | 3,079 | 3,053 | |||||
| 73 | - | Liquids purchases from joint ventures, mt | 131 | - | |||||
| 4 | 1 | Liquids purchases, mt | 9 | 4 | |||||
| 1,049 | 994 | Total liquids production and purchases, mt | 3,219 | 3,057 |
| 3Q 2012 | 3Q 2011 | Sales Volumes | 9M 2012 | 9M 2011 | ||||
| 13,507 | 12,266 | Natural gas, mmcm | 43,004 | 38,088 | ||||
| 737 | 658 | Stable gas condensate, mt | 2,155 | 2,137 | ||||
| 202 | 208 | Liquefied petroleum gas, mt | 664 | 654 | ||||
| 123 | 66 | Crude oil, mt | 308 | 168 |
In the nine months 2012, natural gas sales volumes increased by 12.9% as compared with the corresponding nine month period due to a combined growth in production and purchases. In the third quarter 2012, natural gas sales volumes increased by 10.1% as compared with the third quarter 2011, which was primarily due to an increase in gas purchases.
During the third quarter 2012, injection of natural gas into underground gas storage facilities (UGSF) decreased by 732 million cubic meters, as compared with the third quarter 2011, due to accelerated injection rates in the second quarter 2012. As at 30 September 2012, total amount of natural gas injected into UGSF was 1,309 million cubic meters, which is 10.0% higher than at the end of September 2011.
In the nine months 2012, liquids sales volumes increased by 5.8% due to production growth and start of gas condensate purchases from OOO SeverEnergia, our joint venture, in April 2012. In the third quarter 2012, liquids sales volumes increased by 14.1% due to increase in purchases and decrease in liquids inventory balance.
Selected Balance Sheet Items
(in millions of Russian roubles)
|
| 30 September 2012 | 31 December 2011 | |||
| ASSETS | |||||
| Non-current assets | 350,521 | 325,116 | |||
| Property, plant and equipment, net | 190,032 | 166,784 | |||
| Total current assets | 48,702 | 58,316 | |||
| Total assets | 399,223 | 383,432 | |||
| LIABILITIES AND EQUITY | |||||
| Non-current liabilities | 83,120 | 91,636 | |||
| Long-term debt | 65,721 | 75,180 | |||
| Current liabilities | 33,869 | 50,114 | |||
| Total liabilities | 116,989 | 141,750 | |||
| Equity attributable to OAO NOVATEK shareholders | 281,087 | 241,013 | |||
| Non-controlling interest | 1,147 | 669 | |||
| Total equity | 282,234 | 241,682 | |||
| Total liabilities and equity | 399,223 | 383,432 |
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.
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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 84% 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 MICEX-RTS Stock Exchange and the London Stock Exchange (LSE) under the ticker symbol "NVTK".
Copyright Business Wire 2012
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