12th Mar 2009 17:40
NOVATEK TO REPORT FULL YEAR 2008 IFRS FINANCIAL RESULTS
OAO NOVATEK today announced that it will release its audited full year 2008 consolidated financial results, prepared in accordance with International Financial Reporting Standards ("IFRS"), on Wednesday 18 March.
The Company would like to draw your attention to certain matters that occurred during the three months ended 31 December (fourth quarter 2008) that had a direct impact on our financial and operational results for the full year 2008.
1. As of 31 December 2008, the balance of our US dollar (USD) denominated debt did not increase compared to the balance as of 30 September 2008. However, during this period the Russian rouble (RR) depreciated against the USD by approximately 16.3% resulting in a foreign exchange loss on USD denominated debt of approximately RR 3.3 billion in the fourth quarter. The net foreign exchange loss for the full year 2008 was approximately RR 3.6 billion.
2. As of 31 December 2008, our stable gas condensate volumes in transit and storage recorded as inventory remained relatively unchanged compared to the periods ended 30 September 2008 and 31 December 2007. However, our average contract price (including customs duties) for the sale of our stable gas condensate in the fourth quarter 2008 decreased by approximately 50% compared to our average contract price in the third quarter 2008.
3. On 26 November 2008, the Russian Federation government approved a reduction in the corporate profit tax rate from 24% to 20% effective 1 January 2009. As a result of this announcement, we recorded a reduction in our net deferred tax liabilities of RR 1.1 billion (balance sheet) and a corresponding reduction in our profit tax liabilities (income statement) of the same amount.
The Company will provide more information regarding these and other matters pertaining to the financial results during its upcoming earnings conference call. Specific details on the earnings conference call will be provided next week.
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 6020[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 Region, which is the world's largest natural gas producing area and accounts for over 90% of Russia's natural gas production and 20% 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) 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 2009
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