OREANDA-NEWS. August 16, 2012. NOVATEK released its consolidated interim condensed financial information for the three and six months ended 30 June 2012 prepared in accordance with International Financial Reporting Standards (“IFRS”).

IFRS Financial and Operational Highlights

(in millions of Russian roubles unless otherwise stated

2Q 2012

2Q 2011

 

1H 2012

1H 2011

 

 

Revenues

 

 

44,984

40,551

Oil and gas sales

99,136

85,377

161

75

Other revenues

382

143

45,145

40,626

Total revenues

99,518

85,520

(26,780)

(22,474)

Total operating expenses

(58,631)

(45,917)

(36)

(80)

Other operating income (loss)

5

(27)

18,329

18,072

Profit from operations

40,892

39,576

(5,597)

1,073

Total finance income (expense)

27

3,811

12,211

18,069

Profit before income tax

39,407

41,701

9,657

14,215

Profit (loss)

30,896

32,931

9,663

14,336

Profit (loss) attributable to shareholders of JSC  NOVATEK

30,908

33,105

3.18

4.73

Basic and diluted earnings per share

(in Russian roubles)

10.19

10.91

Total revenues in the second quarter and first half 2012 increased by 11.1% and 16.4%, respectively, as compared to the corresponding periods in 2011, primarily due to higher natural gas and liquid hydrocarbons’ sales volumes.

Profit from operations increased by 1.4% and 3.3% in the second quarter and first half 2012, respectively, compared to the corresponding periods in 2011.  Profit attributable to shareholders of JSC  NOVATEK in the second quarter and first half 2012, decreased by 32.6% and 6.6%, resulting in earnings per share of RR 3.18 and RR 10.19, respectively, primarily due to non-cash foreign exchange losses in the amount of RR 5,299 million in the second quarter 2012 as compared to a non-cash gain of RR 766 million in the prior reporting period.

Profit attributable to shareholders of JSC  NOVATEK in the second quarter 2012, excluding the effect of foreign exchange loss, increased to RR 14,962 million, or 10.3%, from RR 13,570 million in the corresponding period in 2011.

Selected Operating Highlights

2Q 2012

2Q 2011

Production and Purchase Volumes

1H 2012

1H 2011

12,458

10,696

Natural gas production,

million cubic meters (mmcm)

25,503

22,635

1,268

1,313

Equity share in natural gas production from joint ventures, mmcm

2,677

2,684

800

-

Natural gas purchases, mmcm

1,700

-

14,526

12,009

Total natural gas production and purchases, mmcm

29,880

25,319

1,027

1,036

Liquids production, thousand tons

2,107

2,060

58

-

Liquids purchases from joint ventures, thousand tons

58

-

3

2

Liquids purchases, thousand tons

5

3

1,088

1,038

Total liquids production and purchases

2,170

2,063

  

  

 

 

  

  

2Q 2012

2Q 2011

Sales Volumes

1H 2012

1H 2011

13,447

11,830

Natural gas, millions cubic meters

29,497

25,822

794

755

Stable gas condensate, thousand tons

1,418

1,479

224

217

Liquefied petroleum gas, thousand tons

462

446

101

53

Crude oil, thousand tons

185

102

In the second quarter and first half 2012, our natural gas sales volumes increased by 13.7% and 14.2%, respectively, compared to the corresponding periods in 2011. The increases were primarily due to the growth in NOVATEK’s production capacity combined with purchases of natural gas from the Company’s joint venture and other parties. At 30 June 2012, we recorded 1,050 million cubic meters of natural gas as inventory in underground storage as compared to 203 million cubic meters in the corresponding period.

In the second quarter 2012, our total liquids’ sales volumes increased by 9.2% compared to the corresponding periods in 2011, primarily due to an increase in liquid production from the East Tarkosalinskoye field and purchases of unstable gas condensate purchases from LLC  SeverEnergia, our joint venture, after the launch of the first stage development at the Samburgskoye field in April 2012 as well as a decrease in liquids inventory balance.  In first half 2012, our total liquids’ sales volumes increased by 1.9% compared to the corresponding period in 2011 due to gas condensate purchases and increase in total liquids production.

Selected Balance Sheet Items

(in millions of Russian roubles)

 

 

30 June 2012

31 December 2011

ASSETS

  

  

Non-current assets

340,952

325,116

Property, plant and equipment, net

181,229

166,784

Current assets

44,947

58,316

Total assets

385,899

383,432

LIABILITIES AND EQUITY

 

 

Non-current liabilities

87,813

91,636

Long-term debt

70,816

75,180

Current liabilities

35,560

50,114

Total liabilities

123,373

141,750

Equity attributable to

JSC  NOVATEK shareholders

 

261,372

241,013

Non-controlling interest

1,154

669

Total equity

262,526

241,682

Total liabilities and equity

385,899

383,432