NOVATEK to report second quarter 2009 IFRS results
OAO Novatek
NOVATEK TO REPORT SECOND QUARTER 2009 IFRS RESULTS
Moscow, 12 August 2009. OAO NOVATEK today announced that
it will release its unaudited consolidated interim condensed financial
information as of and for the three and six months ended 30 June 2009,
prepared in accordance with International Financial Reporting Standards
(“IFRS”), on 18 August.
The Company would like to draw the attention of investors and analysts
to certain events that occurred during the three months ended 30 June
2009 (2Q 2009) that had a direct impact on our revenues and expenses
during the period.
1. In April 2009, NOVATEK renegotiated the sales terms for natural gas
volumes sold to one of its largest traders. Under the new terms, natural
gas sales volumes are purchased by the trader on a delivered basis to
the regions where the gas is to be consumed. These volumes are now
classified as volumes sold to end-customers.
Due to the change in sales terms, volumes of natural gas sold to
end-customers in the 2Q 2009 increased by 68.3% and 25.6% as compared to
the 2Q 2008 and 1Q 2009, respectively, and in the 2Q 2009 end-customer
sales volumes accounted for 75% of total natural gas sales volumes. The
increase in natural gas volumes delivered and delivery distance in the
2Q 2009, as well as a 5% and 7% increase in the transportation tariff as
of 1 January and 1 April 2009, respectively, resulted in additional
natural gas transportation expense of RR 3.1 billion and RR 2.4 billion
as compared to total natural gas transportation expense in the 2Q 2008
and the 1Q 2009, respectively.
Our average natural gas sales price to end-customers in the 2Q 2009
increased by 2.4% and 4.8% as compared to the 2Q 2008 and 1Q 2009,
respectively, while our average natural gas net-back on end-customer
sales in the 2Q 2009 decreased by 17.2% and 16.9% compared to the same
periods, respectively.
In an environment of uncertain natural gas demand the change in the
terms of sale for natural gas has allowed NOVATEK to maintain natural
gas production volumes at 2008 levels while at the same time increasing
stable gas condensate and LPG sales volumes which has had a positive
effect on the Company’s financial results.
2. During the 2Q 2009, we sold 658 thousand tons of stable gas
condensate representing an increase of 71.8% and 67.4% over 2Q 2008 and
1Q 2009 volumes, respectively.
3. As a result of the Federal Tariff Service’s reduction in the rail
transportation tariffs related to export deliveries of stable gas
condensate and LPG shipped from the Limbey station, effective April
2009, our cost per ton for delivering stable gas condensate and LPG by
rail to the export markets in 2Q 2009 decreased by 7.6% and 21.6%,
respectively, compared to 2Q 2008 and 11.1% and 31.2%, respectively
compared to 1Q 2009.
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.
***
For further information, please visit www.novatek.ru
or contact:
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”.
