Half-yearly Report
OAO Novatek
NOVATEK ANNOUNCES SECOND QUARTER AND FIRST HALF 2009 IFRS RESULTS
Moscow, 18 August 2009. OAO NOVATEK today released its
consolidated interim condensed financial information for the three and
six months ending 30 June 2009 prepared in accordance with International
Financial Reporting Standards (“IFRS”).
IFRS Financial and Operational Highlights
(in millions of Russian roubles)
|
2Q 2009
|
|
2Q 2008
|
|
|
|
1H 2009
|
|
1H 2008
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
22,376
|
|
20,411
|
|
Oil and gas sales
|
|
38,692
|
|
40,578
|
|
|
501
|
|
580
|
|
Sales of polymer and insulation tape
|
|
898
|
|
1,131
|
|
|
271
|
|
361
|
|
Other revenues
|
|
539
|
|
519
|
|
|
23,148
|
|
21,352
|
|
Total revenues
|
|
40,129
|
|
42,228
|
|
|
(15,038)
|
|
(11,822)
|
|
Total operating expenses
|
|
(26,417)
|
|
(22,845)
|
|
|
52
|
|
-
|
|
Net gain (loss) on disposal of interest
in subsidiariesin subsidiaries
|
|
52
|
|
-
|
|
|
|
|
|
|
|
|
(210)
|
|
(195)
|
|
Other operating income (loss)
|
|
(153)
|
|
(179)
|
|
|
7,952
|
|
9,335
|
|
Profit from operations
|
|
13,611
|
|
19,204
|
|
|
1,103
|
|
22
|
|
Finance income (expense)
|
|
(1,805)
|
|
161
|
|
|
9,066
|
|
9,312
|
|
Profit before income tax
|
|
11,801
|
|
19,298
|
|
|
7,163
|
|
7,056
|
|
Profit for period
|
|
9,302
|
|
14,555
|
|
|
7,178
|
|
7,053
|
|
Profit (loss) attributable to OAO NOVATEK shareholders
|
|
9,312
|
|
14,556
|
|
|
2.37
|
|
2.32
|
|
Basic and diluted earnings per share
|
|
3.07
|
|
4.79
|
|
|
|
|
|
|
(in Russian roubles)
|
|
|
|
|
|
In the second quarter 2009, total revenues grew by 8.4% to RR 23,148
million compared to the corresponding period in 2008, as a result of
higher natural gas prices and an increase in liquids sales volumes.
Profit attributable to NOVATEK shareholders in the second quarter 2009
increased by 1.8% to RR 7,178 million, or RR 2.37 per share, due to a
non-cash foreign exchange gain during the 2009 period as well as a
decrease in the statutory tax rate from 24% in 2008 to 20% as of 1
January 2009.
In the first half 2009, total revenues fell by 5.0% to RR 40,129
million, as compared to the corresponding period in 2008, primarily due
to the overall lower pricing environment for liquids in both
international and domestic markets.
Profit attributable to NOVATEK shareholders in the first half 2009
decreased by 36% to RR 9,312 million, or RR 3.07 per share, primarily
due to lower revenues, an increase in natural gas transportation expense
and a significant non-cash foreign exchange loss during the period.
“We are very pleased with the financial and operational results we
achieved during the second quarter 2009 compared to prior year and first
quarter 2009 results, which were largely due to our ability to maintain
natural gas production volumes and significantly increase liquid volumes
at our Yurkharovskoye field” according to Leonid V. Mikhelson, CEO and
Chairman of the Management Board. “During the period, we also increased
our resource base by acquiring a controlling stake in the
South-Tambeyskoye field. This acquisition is consistent with our
long-term strategy of increasing reserves to support future production
growth as well as providing us with a significant position in the
development of the Yamal peninsula.”
Selected Operating Highlights
|
2Q 2009
|
|
2Q 2008
|
|
Production and Purchase Volumes
|
|
1H 2009
|
|
1H 2008
|
|
|
7,563
|
|
7,378
|
|
Natural gas production
(million cubic meters)
|
|
15,736
|
|
14,956
|
|
|
159
|
|
801
|
|
Natural gas purchases
(million cubic meters)
|
|
449
|
|
1,348
|
|
|
7,722
|
|
8,179
|
|
Total natural gas production and purchases
|
|
16,185
|
|
16,304
|
|
|
759
|
|
597
|
|
Liquids production (thousand tons)
|
|
1,468
|
|
1,228
|
|
|
-
|
|
38
|
|
Liquids purchases (thousand tons)
|
|
-
|
|
70
|
|
|
759
|
|
635
|
|
Total liquids production and purchases
|
|
1,468
|
|
1,298
|
|
|
2Q 2009
|
|
2Q 2008
|
|
Sales Volumes
|
|
1H 2009
|
|
1H 2008
|
|
|
7,704
|
|
7,979
|
|
Natural gas (millions cubic meters)
|
|
16,267
|
|
16,370
|
|
|
658
|
|
383
|
|
Stable gas condensate (thousand tons)
|
|
1,051
|
|
824
|
|
|
188
|
|
150
|
|
Liquefied petroleum gas (thousand tons)
|
|
344
|
|
308
|
|
|
45
|
|
72
|
|
Crude oil (thousand tons)
|
|
101
|
|
149
|
|
|
3
|
|
41
|
|
Oil products (thousand tons)
|
|
6
|
|
67
|
|
In the second quarter and first half 2009, our natural gas sales volumes
decreased marginally primarily due to a reduction in our purchases from
third parties while our liquids sales volumes increased during both of
the 2009 periods primarily due to an increase in unstable gas condensate
production at the Yurkharovskoye field.
At 30 June 2009, we had 172 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 149 thousand tons as
of 30 June 2008.
Selected Balance Sheet Items
(in millions of Russian roubles)
|
|
|
30 June 2009
|
|
31 December 2008
|
|
|
ASSETS
|
|
|
|
|
|
|
Non-current assets
|
|
161,673
|
|
113,578
|
|
|
Property, plant and equipment, net
|
|
157,410
|
|
108,714
|
|
|
Total current assets
|
|
24,718
|
|
25,428
|
|
|
Total assets
|
|
186,391
|
|
139,907
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
Non-current liabilities
|
|
30,278
|
|
28,763
|
|
|
Long-term debt
|
|
17,450
|
|
19,935
|
|
|
Current liabilities
|
|
35,814
|
|
14,169
|
|
|
Total liabilities
|
|
66,092
|
|
43,267
|
|
|
Equity attributable to
OAO NOVATEK shareholders
|
|
100,849
|
|
96,069
|
|
|
Minority interest
|
|
19,450
|
|
571
|
|
|
Total equity
|
|
120,299
|
|
96,640
|
|
|
Total liabilities and equity
|
|
186,391
|
|
139,907
|
|
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).
***
For further information, please visit www.novatek.ru
or contact:
|
Press Service
|
|
|
|
|
|
|
|
|
Investor Relations
|
|
+7 (495) 721 2207
|
|
|
|
|
|
|
|
|
+7 (495) 730 6020
|
|
press@novatek.ru
|
|
|
|
|
|
|
|
|
IR@novatek.ru
|
***
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”.
