NOVATEK Announces Third Quarter and Nine Months 2010 IFRS Results

OREANDA-NEWS. November 29, 2010. NOVATEK today released its consolidated interim condensed financial information for the three and nine months ending 30 September 2010 prepared in accordance with International Financial Reporting Standards (“IFRS”). 

IFRS Financial and Operational Highlights

(in millions of Russian roubles)

In the third quarter 2010, our total revenues increased by 34.0% to RR 29,441 million compared to the corresponding period of 2009, primarily due to an increase in natural gas, LPG and stable gas condensate prices and sales volumes. The increase in revenues resulted in a 37.4% increase in profit attributable to NOVATEK shareholders to RR 10,105 million, or RR 3.33 per share, as compared to the corresponding period in 2009.

In the nine months ended 30 September 2010, our total revenues increased by 33.5% to RR 82,889 million, as compared to the corresponding period in 2009, primarily due to an increase in hydrocarbon sales volumes and prices. The increase in oil and gas revenues, as well as the net gain on the disposal of our interest in ZAO Terneftegas in the first quarter of 2010, resulted in a 70.6% increase in profit attributable to NOVATEK shareholders to RR 28,426 million, or RR 9.37 per share over the same period.

Selected Operating Highlights

In the third quarter and nine months of 2010, the growth in our total consolidated natural gas and liquid hydrocarbon production was mainly due to an increase in production at our Yurkharovskoye field resulting from the launch of the second stage of the field’s second phase development in October 2009.

In the third quarter and nine months of 2010, our natural gas sales volumes increased by 4.6% and 8.8%, respectively, primarily due to an increase in production volumes. Over the same periods liquids sales volumes increased by 37.6% and 12.2%, respectively, primarily due to increased production of unstable gas condensate and a decrease in stable gas condensate inventories.

At 30 September 2010, we had 206 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 202 thousand tons as of 30 September 2009. Our natural gas inventory balance as of 30 September 2010 increased to 1,058 million cubic meters compared to 503 million cubic meters at the end of the 2009 period.  

 Selected Balance Sheet Items

(in millions of Russian roubles)