13 May 2011 12:00
NOVATEK ANNOUNCES CONSOLIDATED IFRS RESULTSFOR THE FIRST QUARTER 2011
Moscow, 13 May 2011. OAO NOVATEK today released its consolidated interim condensed financial information as of and for the three months ended 31 March 2011 prepared in accordance with International Financial Reporting Standards ("IFRS").
IFRS Financial and Operational Highlights(in millions of Russian roubles)
| 1Q 2011 | 1Q 2010 | ||||||
| Revenues | |||||||
| Oil and gas sales | 44,793 | 27,237 | |||||
| Sales of polymer and insulation tape | - | 469 | |||||
| Other revenues | 68 | 36 | |||||
| Total revenues | 44,861 | 27,742 | |||||
| Total operating expenses | (23,421) | (15,947) | |||||
| Net gain on disposal of interest in subsidiaries | - | 1,583 | |||||
| Other operating income (loss) | 64 | (5) | |||||
| Profit from operations | 21,504 | 13,373 | |||||
| Finance income (expense) | 2,738 | 612 | |||||
| Profit before income tax | 23,716 | 13,984 | |||||
| Profit (loss) | 18,800 | 11,076 | |||||
| Profit (loss) attributable to shareholders ofOAO NOVATEK | 18,853 | 11,182 | |||||
| Basic and diluted earnings per share (in Russian roubles) | 6.22 | 3.69 | |||||
In the first quarter 2011, our total revenues increased by 61.7% to RR 44,861 million compared to RR 27,742 million in the corresponding period of 2010, primarily due to an increase in natural gas, stable gas condensate and LPG sales volumes and prices.
We recorded an increase of 68.6% in profit attributable to NOVATEK shareholders, which amounted to RR 18,853 million or RR 6.22 per share, as compared to the corresponding period in 2010 that was primarily due to higher oil and gas sales, cost optimization resulting from the completion of infrastructure projects and foreign exchange gains.
According to NOVATEK's Chief Financial Officer, Mark Gyetvay, "Our first quarter 2011 results reflect the successful integration of our recent acquisitions into the Company's operations, the strong domestic and international pricing environment as well as the measures we have taken to optimize costs throughout the hydrocarbon production and processing cycles."
Selected Operating Highlights
| Production and Purchased Volumes | 1Q 2011 | 1Q 2010 | |||
| Natural gas production (million cubic meters) | 11,939 | 9,855 | |||
| Natural gas purchases (million cubic meters) | 1,371 | - | |||
| Total natural gas production and purchases (million cubic meters) | 13,310 | 9,855 | |||
| Liquids production (thousand tons) | 1,024 | 862 | |||
| Liquids purchases (thousand tons) | 1 | 5 | |||
| Total liquids production and purchases (thousand tons) | 1,025 | 867 | |||
| Sales Volumes | 1Q 2011 | 1Q 2010 | |||
| Natural gas (million cubic meters) | 992 | 10,106 | |||
| Stable gas condensate (thousand tons) | 724 | 412 | |||
| Liquefied petroleum gas (thousand tons) | 229 | 225 | |||
| Crude oil (thousand tons) | 49 | 44 | |||
| Oil products (thousand tons) | 1 | 3 | |||
Sales volumes of natural gas increased in the first quarter 2011 due to an increase in NOVATEK's production capacity and natural gas purchases, the expansion of our customer portfolio and higher natural gas demand in the domestic market. We continued to demonstrate strong organic production growth at the Yurkharovskoye field and initiated natural gas purchases in proportion to our equity share in Sibneftegas' production.
Total liquids sales volumes increased in the 2011 period due to higher production volumes, driven primarily by organic production growth at the Yurkharovskoye field, and an increase in the realization of stable gas condensate volumes previously recognized as goods in transit or storage at the beginning of the reporting period, compared to the first quarter 2010.
At 31 March 2011, we recorded 282 thousand tons of stable gas condensate in transit or storage and recognized as inventory until such time as it is delivered to the port of destination as compared to 264 thousand tons as at 31 December 2010.
Selected Items from theStatement of Financial Position(in millions of Russian roubles)
|
| 31 March 2011 | 31 December 2010 | |||
| ASSETS | |||||
| Non-current assets | 259,784 | 255,608 | |||
| Property, plant and equipment | 189,366 | 185,573 | |||
| Current assets | 38,980 | 29,565 | |||
| Total assets | 298,764 | 285,173 | |||
| LIABILITIES AND EQUITY | |||||
| Non-current liabilities | 91,572 | 59,946 | |||
| Long-term debt | 77,331 | 47,074 | |||
| Current liabilities | 20,235 | 57,441 | |||
| Total liabilities | 111,807 | 117,387 | |||
| Equity attributable to OAO NOVATEK shareholders | 166,057 | 147,119 | |||
| Non-controlling interest | 20,900 | 20,667 | |||
| Total equity | 186,957 | 167,786 | |||
| Total liabilities and equity | 298,764 | 285,173 | |||
The full set of reviewed IFRS consolidated interim condensed 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 | Investor Relations | ||||||
| +7 (495) 721 2207 | +7 (495) 730 6013 | ||||||
| press@novatek.ru | IR@novatek.ru | ||||||
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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